Right-sizing for Retirement

Retirement is a Twentieth Century phenomenon. There have always been idle rich who never worked in the first place, but for working men and women, the concept of saving money or earning a pension, then living off that while exiting the work world, is less than one hundred years old.

Making the transition to retired life, expat or not, requires some soul-searching about your needs and wants. Retirement is, after all, removing oneself from the daily income-producing world. This simple fact is lost on some, who retire and continue to work full time. That is not retirement; it is changing jobs or careers. The same goes for ramping down to part-time work of 20 hours a week: much more manageable, but still not retired. As a retiree, you may have resources from investments, a pension or annuity, or an occasional stint as a consultant. But you do not have a job.

In the absence of daily work, you have time to consider what you really need in terms of say, housing, cars, wardrobe, location, hobbies, etc. A good financial planner will set you up to live in the manner you have been accustomed to: but that doesn’t mean you have to keep living the same way, in the same place, with the same allocation of time and resources! Hence the soul-searching.

Let’s start with location: say you live in the suburbs, where your children went to good schools and you had a decent commute. Now, no children to school, and where are you commuting? Your neighborhood will transition over time, with new families moving in, and those kids may do something like ring your doorbell incessantly on Halloween or walk on your lawn! 🙂

Perhaps you have a family home filled with memories, but what are those empty bedrooms doing besides gathering dust? How often are you hosting overnight guests compared to your property taxes? The need to drive to everything gets old, even when you don’t face rush hour. Maybe you become the folks who garden their yard, host block parties and act as surrogate grandparents-in-absentia, retire in place, and that’s a great conscious decision.

Or you live in the city, where things are pretty expensive and most everybody is working. Cities spawn egotists who care about “what you do” and you don’t . . . “do” anymore, you “did.” What about moving to a small town? You’ll save a ton of money, but the culture shock may be overwhelming. Everybody already knows everybody else, and you’ll be the novelty for a while, but then not so much. Small towns may be full of dramatists: people seeking to make more drama to fill in the quiet gaps in life. Exhausting!

Moving presents an opportunity for the new home of your dreams: but yesterday’s dream, or tomorrow’s? Need those extra bedrooms; perhaps. His and hers offices . . . but you don’t work, do you? Entertainment space–of course–but a formal dining room, hmmmm. And you’ll have the time to care for a large property, but is being a maid/gardener/handyman really your idea of the perfect retirement?

You’ll still need a full seasonal wardrobe, depending on where you live (I don’t!). If you had an old school professional set of suits and dresses (either/or, I trust!), how many do you still need? I stashed a full suit (with dress shirt, two ties, dress shoes and socks) at my daughters’ homes and brought one with me. My biggest concern is staying the same size and keeping the dust off all of them.

Two cars, one . . .or none? Retiring stateside probably requires one per person, but maybe you’ll go green and use public transport, or rekindle that two-wheel itch and replace a car with a motorcycle. Again, another chance to re-evaluate wants and needs, and choose accordingly.

Of course there are some who retire and just stop working, without changing anything else, but let me suggest this is an opportunity missed. If you don’t plan to change anything–and you don’t hate your job–why retire in the first place? Better to delay the change while building up your retirement resources, and more importantly, doing that soul-searching!