Whether your retirement is a couple of years or a couple of decades away, it’s never too early — or too late — to start dreaming about and preparing for it. Traditionally, retirement planning has focused on saving money and building financial security. However, a 2005 study by Ameriprise Financial in collaboration with Age Wage, the New Retirement Mindscape, found that having a vision for the future and planning for that vision are as important as money in achieving a fulfilling retirement experience.
Further, the study discovered that retirement satisfaction is typically linked to several factors: having a clear vision of retirement goals, early financial planning, continued engagement and activity throughout retirement, financial preparation and professional advice.
The importance of planning for a meaningful retirement has increased as life expectancy has improved. According to an Actuarial statistics study in 2005, the baby boomer generation is expected to live longer than any previous generation. In fact, it is anticipated that over half of the people alive today will likely live to be 82 years or older. Unlike their elders, many people can look forward to living for several decades — as opposed to several years — in retirement.
While most people would agree that envisioning their retirement dreams is an important part of planning for the future, many of us may not know where to start or how to do it. An example of a helpful tool is the Dream Book, a new guide developed by Ameriprise Financial that takes retirement planning beyond the numbers and helps individuals articulate their retirement visions. It is based on the premise that those who write down their dreams are much more likely to achieve them. By connecting a person’s life and financial plans, these types of tools help clients identify their dreams, and set financial goals to help them get there.
The Dream Book poses thought-provoking questions about individual visions and passions to reveal the attitudes, values and aspirations behind each person’s unique goals. Prior to retirement, the Dream Book can help you develop a “retirement roadmap” and prepare both emotionally and financially for your future. During retirement, you can use it to re-envision and re-evaluate your goals as you consider your experiences, challenges and worries as a retiree. Here are some questions posed in the Dream Book:
What do you look forward to doing in retirement?
Possibilities to explore include spending time with family and friends, going back to school, doing volunteer work, starting a new business, staying healthy and fit, and traveling.
Where do you dream of going?
Consider possible destinations and activities, how you would like to travel, how much traveling you would like to do and who you would like to travel with.
Where do you see yourself living?
Where you live significantly impacts your costs in retirement. Do you want to be part of a community? Do you want to try a new climate or lifestyle? Do you want to live in multiple locations? Consider whether you want to stay close to your current home, move closer to family or relocate near activities you love.
How do you want to make your lasting mark?
Your legacy is what’s important to you and what you want to pass on to others. Leaving a legacy can mean many things including passing on your assets, your values or the lessons you’ve learned. Consider what gives you a sense of satisfaction and how you can have a lasting impact.
After you have explored your dreams for retirement, you will want to consider how to turn those dreams into reality. Working with a financial planner can help you with your retirement vision. The New Retirement Mindscape study discovered that 73 percent of retirees who worked with an advisor reported enjoying retirement a great deal versus 54 percent of retirees without an advisor. Further, the research revealed that people who sought help from an advisor were generally more positive in their outlook for retirement; 82 percent of pre-retirees with an advisor believed their retirement dreams were attainable versus 66 percent of those without an advisor. Having a written financial plan also had a positive impact on retirement satisfaction.
Fulfillment in retirement is not just about getting the money right; it’s about having a vision, remaining connected to community and living your dream. Consider working with a qualified financial planner who can help you envision your retirement lifestyle and create a financial plan for attain it. To request a free, downloadable copy of the Dream Book, visit www.ameriprise.com.
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