Imagine you are about a year (or month) from leaving your job. You have pretty much got your financial house in order and are starting to think about what else there is to plan for? At this point, some people may be pulling out their ‘bucket lists’—with all the things that have been neglected (or avoided) during one’s working life. How many times have you told yourself you’ll get to this when you have more time? Others may be thinking ‘what is there to plan for? Retirement will just be one long vacation!’
Research has shown that planning for retirement is complex. It is impacted not only by people’s goals and resources (like finances or health) but also by what people believe about planning[1]. Do you see plans as providing you a roadmap for the future, or a way to box yourself in? In general, planning helps people feel like they have some control over the transition to retirement and, goal setting is a big part of this.
A couple of years ago, I conducted a study asking people how they plan for their lives in retirement. 748 Canadians[2] responded to an online survey (originally linked to this Retired You website). One of the questions I asked was: What are people’s goals for themselves and life in retirement?
The most frequently mentioned type of goal was related to participating in meaningful activities (n = 384), such as travel, hobbies, community service and volunteering, or personal development. For example, one participant wrote, ‘Spend more time doing those things that I really enjoy which I never allowed myself time for. Music (guitar/piano) kayak/canoe tripping, reading, cycling.’ Another said: ‘To live a less stressful life, be more physically fit and do something fun with the next phase of my life.’
Other types of goals were related to:
health and well-being (n = 222; e.g., physical and mental health, reducing stress, and being happy)
relationships (n = 190; seeing family and friends, caregiving activities)
time use more generally (n = 129; having more free time, reducing work or slowing down, and staying busy)
finances (n = 64)
relaxation (n = 60)
housing/home life (n = 47; e.g., relocating or moving, getting organized or renovating, and buying or selling their home)
Relationship and activity goals were often stated together. For example, one participant noted: ‘To spend more time with family, especially young grandchildren; to travel; to have time for hobbies and recreation.’ Many study participants seemed to be picking up activities that had been important in the past, as well as actively seeking new activities that would be fulfilling and align with their values, priorities and overall vision for their lives.
What Can We Learn From This?
Perhaps because of Canada’s pension infrastructure, the retirees in this current study were able to look beyond finances to other areas of life central to experiencing satisfaction and fulfilment in retirement. In fact, setting goals for retirement in various areas (e.g., health, meaningful activities, etc.) seemed to be one of the most important planning tasks undertaken (and advised) by study participants. This type of planning seemed to enable people to tap into their values, interests, and motivations and, in so doing, ensure a sense of meaningfulness associated with life post-work.
What Do These Results Mean for You?
Are you feeling uncertain about what life might look like after you leave your job? As mentioned above, setting goals is an important part of the retirement planning process. The following are three tips for thinking about your goals in retirement:
Take stock: It’s useful to consider the goal areas study participants identified (meaningful activities, health, relationships, etc.) in relation to your own life. Think too about the things you used to love to do that you left behind with work and family/caregiving responsibilities as well as new possibilities for action.
Set ‘MED’ goals: MED stands for Meaningful, Enjoyable and Doable. Once you’ve identified some priorities in different life areas, and are considering how to make them happen, ask yourself if the action you’ve selected is likely to be meaningful (e.g., it aligns with your values/beliefs and priorities), enjoyable (e.g., you anticipate rather than dread what you’ve planned to do) and doable (e.g., you believe you have a good likelihood of accomplishing what you’ve set out to do). If it isn’t then consider revising your goals and/or planned actions.
Consider taking small steps and testing the waters: If it seems daunting to set big goals then consider the smallest unit of action that can help you take a first step towards them. If joining a gym seems overwhelming, for example, then consider beginning by lifting your soup cans at home. Even the smallest action is one step closer to your goal. Likewise, test the waters before committing to one specific goal. For example, if you are planning a big ticket purchase (like buying a cottage or RV) test the waters (e.g., by renting a cottage for a months or borrowing an RV for a week) before making this investment.
For more information and access to self-assessment tools and other resources, check out the Resources link on the Retired You website.
[1] For example: Adams, G. A., & Rau, B. L. (2011). Putting off tomorrow to do what you want today: Planning for retirement. American Psychologist, 66, 180–192.
[2] Of those who participated in the study, most were women (68%), married/partnered (79.8%), white (97.2%), and fully retired (67.2%). The majority of study participants reported retiring between ages 55 and 64 (87.4%).