11 Things to Leave Behind When Retiring
Retirement is a valued goal for many hardworking Americans. According to a survey by Lincoln Financial Group, 60% of retirees would go back in time and change the way they planned their retirement if they could.
While retirement dreams often focus on gains, the reality may involve letting go of certain things. But, surprisingly, bidding farewell to some of them may bring you unexpected joy.
1: Saving for Retirement
In theory, you will have saved enough money during your career to comfortably fund your retirement. But since the act of saving money disappears come retirement, transitioning to living off your savings isn’t always psychologically easy.
Senior strategic policy advisor David John at the AARP Public Policy Institute even describes the transition from saver to spender as being “almost physically painful.”
2: Dress Pant Shopping
Employees reaching retirement age may have experienced a glimpse of remote or hybrid office life. But for the majority of their careers, dressing up for the office was part of many Americans’ routines.
That said, once retirement comes along, gone are the days when you need to head to the professional section of clothing stores to pick out office attire. That may or may not be a good thing in your eyes, but this situation surely is: All those battles with ironing your dress shirts also disappear during retirement.
3: Impromptu Coworker Outings
Need to vent about something? You’ll lose the ability to turn to a coworker and take a quick walk to get it out of your system. Invitations for Friday night outings with coworkers will also be out the window (or, at least, require more planning with former coworkers).
4: Space From Your Spouse
If you live at home with a spouse who’s also retired, having long chunks of time apart from them might disappear unless you actively work on building in time to do your own thing. According to Psychology Today, couples agreeing to provide space to one another often have stronger relationships, as it gives each person time for personal growth and introspection.
5: Frequent Trips to the Gas Station
Filling up on gas (or recharging your electric vehicle battery) won’t completely go away during retirement. But unless you plan on road-tripping around the U.S., there’s a good chance frequent stops at the gas station will become a distant memory once you retire.
6: Packing Lunches
After retiring, the word “lunch box” might bring back the permeating smell of soggy bologna sandwiches. The good news? You can make non-soggy bologna sandwiches at home or save money by eating other food in your kitchen instead of going out to eat at lunchtime.
7: Excuse of Working
Depending on how one approaches it, retirement doesn’t always equate to having tons of extra time. However, children, friends, and others might expect that since you no longer have a “real” job, you can be at their beck and call when they need help. Whereas in the past you might have been able to use working late at the office or being tired from being at the office as a socially acceptable reason for declining a loved one’s request, you might have to take more time to explain the reason behind your “no” once you retire.
8: Ultra-High Taxes
Since retirement usually comes with a lower annual income, your years of paying the highest tax rates of your life are likely behind you. Furthermore, once you hit 65 to 67, you can expect tax breaks. Depending on the state where you live, they could be in the form of exemptions, tax credits, deferrals, and rate freezes.
9: Routine
Love it or hate it, Northwestern Medicine says that routine is vital for a healthy life. It can help you better manage stress, sleep better, and eat healthier. So, given that the transition from working to retirement makes the routine you used to have disappear, it’s vital you work on establishing a new routine.
10: A Portion of Your Identity
A job becomes a part of a worker’s identity, especially if they’re doing something they’re proud of. Transitioning from saying “I’m a (insert title here)” to “I used to be a (insert title here)” can be jarring for some retirees. Finding a new purpose and identity or building upon what you already have (such as volunteering in the field you used to work in) can be a great way to offset this change.
11: Paying Full Price
Many businesses offer senior discounts to their customers, and you might not have to wait until you hit 67 years old to take advantage of them. McDonald’s offers senior discounts at participating stores to customers 55+ years old. Kohl’s, Ross Dress for Less, and Rite Aid are other businesses offering senior discounts.
Partially Retired
According to Federal Reserve data, 27% of Americans in 2022 stated that they were retired, although 4% were still working in some capacity. Retirees with a bachelor’s degree were more likely to be still working (18%) compared to retirees with a high school diploma or less (9%).
Empty Retirement Accounts
Nearly 50% of American households had $0 in retirement account savings in 2022. That’s an especially troubling number given that in 1989, about half of working households with people ages 50 to 60 had a defined benefit plan through their employer. The percentage plummeted to about 25% in 2022.
National Average
The median retirement savings for working-age households is about $95,776. That includes money Americans have saved on their own for retirement as well as employer-sponsored contributions. Social security benefits aren’t included in this number, as it’s not considered a part of traditional retirement savings.
Age Breakdown
According to Vanguard, the average balance in their customers’ retirement savings by age group is as follows:
- 25 and younger: $6,264
- 25 – 34: $37,211
- 35 – 44: $97,020
- 45 – 54: $179,200
- 55 – 64: $256,244
- 65+: $279,997
Reality Check
Financial planning service Fidelity recommends that Americans save 10x their income by the time they reach 67 years old. They add the caveat that the exact amount you should save for retirement depends on the age you retire and the lifestyle you want to have in your golden years.
Still Time
Are you younger than 67 years old? If so, Fidelity recommends saving the following amounts by the time you reach these benchmarks:
- 30 years old: 1x your starting salary
- 35 years old: 2x your starting salary
- 40 years old: 3x your starting salary
- 45 years old: 4x your starting salary
- 50 years old: 6x your starting salary
- 55 years old: 7x your starting salary
- 60 years old: 8x your starting salary
12 Reasons Why Older Generations Aren’t Retiring
Baby boomers are no strangers to criticisms from younger generations, and some youngins are stuck wondering why they won’t retire. But when broken down, it makes sense why boomers are forgoing retirement during their golden years.
12 Reasons Why Older Generations Aren’t Retiring
Most to Least Expensive States To Retire
Are you hoping to settle down in a cheaper state during retirement? These are the states to consider and, equally important, those you’re better off avoiding.
Most to Least Expensive States to Retire Ranked From 1 to 50
