January 2003
Your attitude toward retirement
by Dr. David Kats
As with any change in life, you have to be emotionally ready
for retirement. You have to address the psychological aspect of retiring.
If you're looking forward to retirement and anticipate it as
a welcome change in life, a new adventure, then you will probably find it
to be so. By the same token, if you consider retirement a necessary evil,
something you don't really want but are forced to do, you might find your
worst fears confirmed. Henry Ford said, "Whether you believe you can,
or whether you believe you can't, you're probably right."
Retirement is not the end of the road -- it's a curve in the
road. There is still more living ahead. With a good attitude you'll enjoy
your work, work hard, make a lot of money, and retire sooner. With a bad
attitude you will bounce around from technique to technique, buy every new
gadget that comes along, slowly let your practice dwindle to nothing and
never retire. While a good attitude makes retirement a blessing, a bad
attitude makes it depressing.
Perhaps the most important retirement concept we must
understand is that we are retiring "into something" and not just
retiring from a job. Retirement is not doing nothing. The more you prepare
for those exciting years, the more fulfilling they will be. You will
probably become in your retirement what you picture right now. If you
change the picture, you will be able to change your retirement outcome.
Financial stress
During the second half of 1987, interest rates in the
United States
rose and the bond market
declined. The world's most sophisticated stock investors panicked, sending
the stock market down 30% or more. Meanwhile,
U.S.
real estate markets in
the were plummeting because of over-building, new tax legislation, and
rising interest rates. Oil and gas prices dropped because of an
oversupply. It was a dismal time for investors living off their assets.
The fear of financial loss or inadequacy is one of the most
prevalent emotional issues to deal with in retirement. In the years before
retirement, every time a few thousand dollars were added to the retirement
account, there was a heightened sense of financial security. But in
retirement, any decline in total investment value because of low returns
or excess spending can send people into a deep depression. Uncontrolled,
this concern can ruin their lives.
Ed was one of my high school football coaches. He was
credited with turning the football program around. I also had him as an
instructor for a few classes. He had a tremendous command of the English
language, great reasoning skills, and a deep throaty laugh that made you
feel good all over. He was also a pillar of the community, serving on many
different boards including the State Parole Board.
About 10 years after high school graduation, I was devastated
to hear that Ed had placed a gun in his mouth and committed suicide. I
understand that after retirement some of his investments had turned bad,
and he became severely depressed.
While most of us certainly wouldn't react that way, you can
be assured that your financial fears will not end with retirement. Every
year that you withdraw money from your retirement fund and all the markets
you are in decline, you'll assume the worst and calculate how few years
you can live on your retirement nest egg if it continues to decline at its
current rate. This last year is a good example.
The good news is markets virtually never continue to
decline!
Fear of growing old
When we first think of retirement we tend to think
short‑term. We look for retirement homes near beaches, not
hospitals. We value homes because they are near the airport instead of
because they are barrier‑free. While it's natural to think about the
good times that will happen early in our retirement years, it's obvious
that retirement marks the last third of our life...which ends with our
death.
While it's good to plan for the end of life, there's no
reason to obsess about it. It all boils down to the question of how you
see the glass. Is it half empty or half full? In today's society,
retirement is too long to not live it to the fullest. Socrates said the
unexamined life is not worth living.
Psychologists suggest that the way to overcome fear is by
creating an even more powerful desire. Fear of the stage is overcome by a
stronger desire to perform. Fear of a skiing mishap is overcome by desire
for the excitement of the downhill slope. Your fears of various negative
retirement issues can be overcome by anticipating the joys that retirement
brings. A clear vision of retirement can help create the desire that
overcomes fears.
The following "retirement vision" test provides an
exercise that can help you create a clearer retirement vision. You may
want to take time to clarify your retirement vision -- right now. Ask
yourself:
1. What are the three best things about my retirement?
2. Who do I know that is retired and 65 or older that I
admire?
3. How have they handled their retirement?
4. What responsibilities will end when I reach retirement?
5. What opportunities will I have in retirement that I do not
have now?
6. How will retirement improve my family life?
7. How will retirement improve my spiritual life?
8. How will retirement improve my physical life?
9. How will retirement improve my educational life?
10. What will I do with my leisure time?
(David Kats, D.C., a Palmer College graduate, was voted ACA
"Chiropractor of the Year" in 1989. After retirement from one of
the largest chiropractic practices in the
U.S.
, he turned to
chiropractic business consulting. Dr. Kats is the author of "Going
Out On Top," subtitled, "The Easy-to-Understand Guide for a
Happy, Healthy, Prosperous Retirement.")
