When it comes to retirement, most people think of a life of travel and leisure.  Most retirement plans concentrate on financial aspects – having enough money to do whatever they want!  But, medical advances allow us to live longer, and healthier. We need to cast our thinking beyond retirement to life planning.

There is a maze of issues to be considered:  Travel or stay put? Live in the same house, downsize, and eventually move to a retirement home or assisted living community? Continue to work or doing volunteer work? Learn new hobbies? Establish a new social network? Clearly, one’s financial situation will frame the answers to many of these questions.  Even though no one could predict the future, knowing what the options are, and making a realistic plan provides you with peace of mind.

I have discovered that, some retirees, after a lifetime of two week vacations, had trouble entering a period of spending their retirement savings and a life of leisure. For decades their mantra has been to save and accumulate a nest egg.  Many worry about how long their nest egg will last in the face of diminishing Social Security benefits, companies reducing retirement health insurance coverage, and the under-funding of their pension plans.  Others simply worry about outliving their money!  Therefore, many seniors or retirees quickly return to work.

In fact, about 78% of the senior/retirees are still working either part-time or full-time.  Among them, 70% are working out of economic necessity.  Beyond meeting financial needs, many seniors may not want to stop working altogether.  Job titles, power and prestige are the basis for their identity.  By retiring, they also fear the loss of being important, useful, respected, and talented.  These people not only lost an identity, but also a community of coworkers and friends.

For other retirees, retirement may be the opportunity to work in an occupation they had always wanted (but couldn’t make a living at), for the best boss they ever had (themselves). A hobby could become a way to make a living after retiring from your regular job. For example, Ms. M.P., a client of mine enjoyed making jewelry while still working. After she “retired” from her regular job; she came to me for advice.  With a small portion of her retirement fund, she transformed her hobby into home business of jewelry making and started attending jewelry shows throughout the country.  After three years, she established her business and most important of all – she enjoys what she is doing!

Many technological, social and community forces have transformed retirement beyond a life of rest and leisure to one of greater life fulfillment. We need to think in advance of these transforming forces to a retirement where we use our wisdom and maturity to become the person we had always wanted to be, unencumbered by the demands of making a living.

 Editor's Note:  This column is written by Yen Chan, Certified Senior Advisor.  The information contains in this column is for general reference only.  Any specific questions please contact your personal financial professional or Yen Chan at 301-840-8380 or visit www.seniorsolutionusa.com