The Honeymoon Phase

The Honeymoon phase is a time when “exploring our freedom” is brand new. However, just as a newly married couple must navigate the transition from single life to living with a spouse, there is an adjustment period. The primary questions include:

What is the role of work in our lives?

For a growing number of people, the term “Retirement” is a turn-off, and doesn’t accurately describe their aspirations for life. An increasing number of people want to have their cake and eat it too: they desire a life in which they are able to continue working, but on their own terms and at their own pace.

Where will our income come from?

Financial security is an important part of these years, and nobody wants to run out of money as they get older. Many fear leaving the work force, unless they have confidence that they can sustain their lifestyle without working. It may be difficult to establish a budget, which may become increasingly important. This also requires a new investing tool kit, as Explorers have spent most of their lives accumulating wealth, and now need strategies for distributing that wealth in the form of a monthly income.

How will our Family Dynamics change?

On one hand, many people have hopes that they will now have more time and resources to enjoy time with their children and grandchildren. However, one or more adult children may live in a different city or state, or many even have multiple children in multiple locations.

On the other hand, many people entering this stage of life feel that they want to be close to their kids, but not too close.. Although adult children may be grown, that does not necessarily mean that they are financially self-sufficient, or even that they have moved out of the house yet.

Replacing your Paycheck

Many people wrestle with the transition from relying on a monthly paycheck, to the need to rely on passive sources of income. Many are uncertain as they first retire that they have enough – although they understand the need to adhere to a budget now that they are retired, they have never lived within a budget before.

How will our Family Dynamics Change?

Family Dynamics can change as we grow older. Time with family can become more challenging, as children may live in other cities or states. Some couples look forward to retirement as a time of freedom from responsibility, but may need to continue to support adult children, who may still live at home. Additionally, conflicts may arise among children over caregiving decisions, or about who is carrying the burden of caring for parents, and who is not.

Big Decision Phase

The next period is called the “Big Decision” stage, and the biggest question is “Where will we Live?”

Many people prefer to “age in place” in their existing home, but this option may be less practical as they grow older. Others prefer to explore new and different living arrangements, and shed the responsibilities of taking care of their existing home.

Among the questions are: Should we stay in our hometown or move somewhere warmer? Will life be easier if we downsize? Should we move in with a family member? Or make our existing home more “aging friendly”? Do we want to consider a Retirement Community or Assisted Living? How important is proximity to our family? Do we like the city or the suburbs better? How will we get around? If we move, how will we replace our social network?

There are important factors that will determine your future quality of life, and present important risks to consider, such as:

• Losing your independence due to ailing health;

· Being able to maintain your home, handle house cleaning, maintenance and basic repairs

• Being unable to access the big and small things that make you happy, like living close by to your favorite Starbucks, restaurant, or shopping mall

• Facing a decline in the number of friends in your social network.

Your choice of living arrangements is likely to have impact on all of these risks over time.

Navigating Longevity

The next stage is known as Navigating Longevity, as managing the complexities of life may become more challenging and aging takes a toll on physical and cognitive health and abilities. The daily details of life, which we call Administrivia, begin to increase as health care, financial and legal, and household management logistics become more complex, at a time when physical and cognitive changes may make it more and more difficult to keep up with these details.

Juggling these details may trigger a call for additional professional advice, but trusted physicians, financial advisors, or lawyers may be retiring just when they are needed most. Searching and choosing a new physician and financial advisor after years, if not decades, with existing providers is not easy and often requires considerable research, time, and new-found trust.

This may also be a time when social well being may change. Traditionally, families provided the social core. However, smaller and more dispersed families are making that support system less common. Friends of the same age managing their own health make maintaining connections a greater challenge. It may be more and more difficult to maintain critical social connections.

Managing Health Care

As we age, the maintenance of our health requires more time and financial resources as our health concerns multiply. The logistics of health management may become a full-time job with increased medical appointments, medication management, and increasing mobility challenges. In addition, spending on healthcare typically increases steeply after age 65.

Daily Living Details

As we age, we may need occasional assistance to help run routine errands and maintain the home. It may be harder to juggle getting the car serviced, picking up the dry cleaning, and grocery shopping while still weeding the garden and mowing the grass - particularly as mobility or the ability to drive may be impaired. We might need a helping hand to complete these activities.

Financial and Legal Affairs

Our experience is that most families appoint one spouse to act as “Chief Financial Officer” of the household, while the other spouse is less involved in the financial management of the household. As the couple ages, new issues can arise as minor cognitive challenges may begin to surface. The family CFO may be starting to become more forgetful, have a harder time remembering details, and more difficulty keeping track with the volume of administration required in financial management.

Social Well Being

Social well-being may become a challenge, and fewer opportunities to join friends and family may be available. Maintaining a strong social network is an important key to happiness, and can also be a key factor in physical and mental health and vitality. As a result, loneliness and isolation are likely to become the biggest challenge and fears.