Planning for retirement can be challenging for everyone, even for experts like Christine Benz, the director of personal finance and retirement planning at Morningstar. As someone who has dedicated her career to helping others navigate retirement, Benz found herself grappling with retirement-related issues when she took on financial responsibilities for her parents, a role that exposed her to challenges she had never fully understood until she experienced them firsthand.
Her lessons, drawn from years of experience and personal challenges, are compiled in her new book, How To Retire: 20 Lessons For A Happy, Successful, And Wealthy Retirement. The book offers key insights from personal finance experts like Ramit Sethi and Jean Chatzky, delivering practical advice for anyone preparing for retirement.
Here are five key retirement tips that Christine Benz believes are essential for achieving a happy and successful retirement:
1. Look at Different Perspectives
There is no universal solution when it comes to retirement planning. Benz emphasizes that even among the top experts, opinions can vary greatly.
For instance, some experts advocate for the use of annuities in retirement planning, while others advise against them. The same applies to the age at which one chooses to retire, as some may aim for 60 while others prefer working into their 70s or even 80s.
The key is to recognize that there is no “correct” answer that applies to everyone. Retirement should be tailored to your unique circumstances and preferences.
2. Don’t Be Swayed by Others
Retirement can span 20 to 30 years, and it’s important to plan it in a way that reflects your own desires, rather than following what others have done.
Benz advises, “Don’t do it the way your parents did it, or how your neighbors are doing it.” Instead, explore what works best for you, even if it differs from the norm. For instance, if an unconventional hobby or lifestyle brings you happiness, don’t hesitate to pursue it, regardless of societal expectations.
3. Don’t Focus Solely on Returns
Many people view retirement through a financial lens, believing it’s all about maximizing returns and minimizing costs. While these aspects are important, Benz argues that retirement is more about emotional well-being than purely financial metrics.
For example, having cash in your portfolio might lower overall returns, but if it helps you sleep better at night by reducing anxiety over market volatility, then it’s worth the trade-off. A successful retirement isn’t just about numbers; it’s about feeling secure and content in your choices.
4. Experiment Before You Commit
The idea of retiring to a new location or diving into a new hobby sounds exciting, but how will you know if it’s right for you until you try it out? Benz recommends experimenting with various aspects of retirement before making any long-term commitments.
For instance, if you’re considering moving abroad, spend a month in your desired destination to see how it feels. Benz herself did this by renting a place in Florida for a month but found that she missed her community in Chicago. Testing new ideas gives you a better sense of what you truly enjoy.
5. Find Your Micro-Joys
Retirement doesn’t need to revolve around extravagant bucket list items. While big trips and milestones are meaningful, day-to-day pleasures can be just as fulfilling.
Benz suggests focusing on the small joys of life, such as sharing a meal with friends or engaging in a favorite hobby. These moments, which often cost nothing, can provide lasting happiness and a sense of fulfillment throughout retirement.
Final Thoughts:
Planning for retirement isn’t just about hitting financial targets—it’s about understanding your personal needs and values. By following these five key tips from Christine Benz, you can create a retirement plan that’s financially sound and personally rewarding. Whether you’re exploring new activities or simply enjoying small moments, the key to a successful retirement is balance and flexibility.
