RETIREMENT REALITY

Part 3 of 5: Retirement Isn’t a Financial Event. It’s a Life Event.

Imagine two couples.

Both retire at 65.

Both own their homes.

Both have $1.5 million invested.

Both receive similar Social Security benefits.

Both have essentially identical retirement projections.

Financially, they’re equally prepared.

But one couple has close friends, hobbies, volunteer commitments, grandchildren nearby and several trips they’re excited to take.

The other couple has spent the past 40 years almost entirely focused on work.

Which couple is better prepared for retirement?

The answer probably won’t appear in a Monte Carlo analysis.

What Happens Monday Morning?

We spend decades preparing financially for retirement.

But comparatively little time preparing for retirement itself.

Work provides more than a paycheck.

It gives us structure.

It gives us colleagues.

It gives us goals.

It gives us problems to solve.

And for many people, it provides a significant part of their identity.

Then one Friday afternoon, it ends.

Monday morning arrives and there’s nowhere you have to be.

Initially, that can feel fantastic.

Six months later, some retirees begin asking a different question:

Now what?

GRAPHIC: What Does Work Give Us Besides a Paycheck?

Retirement removes the paycheck—but it can also remove much more.

A fulfilling retirement can replace those things with:

Family • Friends • Hobbies • Volunteering • Travel • Exercise • Part-Time Work • Learning • Community

Preparing financially for retirement is only half the job. It’s also worth thinking about what will replace the structure, relationships and sense of purpose that work once provided.

Money and Happiness Aren’t the Same Thing

Financial security certainly matters.

Worrying about paying bills isn’t anyone’s idea of an enjoyable retirement.

But once basic financial security has been established, other factors become increasingly important.

A 2025 study using Health and Retirement Study data examined retirement status, social support and life satisfaction.

Researchers found that closeness with a spouse or partner and having close friends were positively associated with life satisfaction across income groups.

That shouldn’t surprise us.

You can build an excellent investment portfolio.

You can’t put friendship, purpose or family relationships into an IRA.

Retirement Can Change a Marriage

There’s another transition people don’t always anticipate.

During working years, couples may spend most weekdays apart.

Then retirement happens.

Suddenly they’re together.

A lot.

One spouse may imagine retirement as traveling and trying new things.

The other may imagine golf three mornings a week and relaxing at home.

Neither vision is wrong.

But discovering those differences after retirement can create friction.

That’s why some of the most useful retirement planning questions aren’t financial at all.

What does an ideal Tuesday look like?

Do you want to travel?

Do you want to move?

Do you want to work part-time?

How much time do you expect to spend with grandchildren?

Are there organizations you’d like to volunteer with?

What have you always wanted to learn?

Those questions can be surprisingly difficult.

Maybe Retirement Shouldn’t Mean “Stop Working”

Another widely held belief deserves examination:

Retirement means you stop working.

Why?

For someone who dislikes their job, leaving work completely may be wonderful.

For someone who enjoys aspects of their career, a gradual transition might be better.

Consulting two days a week, teaching, mentoring younger employees or starting a small business can provide income—but income may be the least important benefit.

Work can provide purpose and social connection.

Research on retirement transitions has found that retirement status, social relationships and life satisfaction are interconnected, and that returning to work may even be associated with greater life satisfaction for some groups.

Retirement doesn’t have to be an on/off switch.

Build a Life Plan Alongside the Financial Plan

Before retirement, try an exercise.

Write down five things you want more of in retirement.

Then write down five things you want less of.

The answers might include:

More: time with family, exercise, travel, reading and volunteering.

Less: commuting, stress, email, responsibility and rushing.

Now ask whether your financial plan supports that life.

That’s where financial planning and life planning intersect.

The Otium Perspective

At Otium Financial Planners, we believe retirement planning should go beyond account balances and investment returns.

Your financial plan should support the life you’re trying to build.

Knowing you have enough money to retire is important.

Knowing what you’re retiring to may be just as important.

Coming Next: Even a well-funded retirement plan assumes someone will be capable of managing it. In Part 4, we’ll discuss a retirement risk families often avoid talking about: what happens when financial ability begins to change.

Sources: Health and Retirement Study; 2025 research examining retirement status, social support and life satisfaction.