We’ve mentioned previously that, of the 5 big financial risks you’ll face in retirement, longevity is the most important one to acknowledge; it exacerbates the risk presented by all of the others (taxes, market volatility, inflation, sickness/injury).
And while living a long life will create strains in a lot of areas, not the least of which is on making sure you have enough income for a successful retirement, we invite you to consider that maintaining good health is the #1 key to a successful retirement.
Why so?
Well…some of the reason might be obvious: good health generally leads to lower healthcare concerns, which can in turn lead to lower healthcare costs, and ultimately allow income and assets to go further and last longer.
Other reasons why good health plays a role in retirement include:
· Enjoyment of free time for leisure activities such as travel, hobbies, volunteer work, and spending time with loved ones.
· Avoiding dependence on others for basic tasks like cooking, bathing, or transportation. Emotional well-being, including things like better mood, less anxiety, and more social engagement.
· Longevity with a high quality of life.
· Ability to support others, as many retirees want to help family members (children, grandchildren, aging spouses, etc.).
There’s one last reason why good health is so important – it fosters the ability to work. Whether you want to productively occupy your time, or you need to earn a little bit because your assets and other income sources are not sufficient, maintaining good health will be a critical component for this. Not everyone gets to retire on exactly his/her terms. People are downsized from their career-long positions; others face career burnout and need to take a break before the stress begins to negatively impact their health; and still others are forced to leave their demanding careers in order to help care for others. For all of the above and more, maintaining good mental and physical health can play a critical role in allowing you to work in some lesser capacity, and therefore make up for the retirement assets whose growth got cut short.
Think you’ll wait until you retire and have more time to take good care of yourself? Too busy taking care of others to take care of yourself? We’d invite you to consider re-looking at these perceived realities, and make sure that you start (or maintain) a path to a better you right now. After all, in the event of a decrease in cabin pressure on an airplane, when the oxygen mask falls from the ceiling, you should always put your own mask on first.
We hope that you’ve enjoyed this series in which we’ve looked at the eventualities of retirement from multiple angles. If you’re not sure about your own retirement readiness, or if you know someone who might be sure about theirs, let us know…we’re always happy to help you examine it more closely.