Why You Should Consider a Retirement Coach
Planning for retirement can be stressful and confusing: money ! Accounts ! Tax consequences ! It’s enough to make your head spin, and it’s one of the reasons why the financial advisor market is already close to $100 billion and is projected to reach $157.7 billion by 2032.
Note that all of these factors are financial, because when we talk about retirement, we’re usually talking about money. But money is only one part of it all. Of course, you need money to retire, but you also need to plan for other aspects of life during your golden years.
A lack of comprehensive retirement planning—planning that includes structuring your time, figuring out where you’ll focus your energy, and how you’ll maintain your mental, emotional, and physical health—is why about a third of retirees experience depression. . The transition from a busy work life to a more relaxed one is not always easy, and around a third of people over 50 experience loneliness and increased isolation, partly due to the sudden loss of work-oriented social circles.
Knowing that retirement can be a challenge beyond just a financial one, what can you do about it? Enlist the help of another specialist. If you’re approaching retirement and aren’t sure how you’ll cope with these changes, you may want to consider hiring a retirement coach.
A coach can help you plan your retirement lifestyle.
Retirement coaching is a type of life coaching. Simply put, these are professionals who can help you figure out how to retire. It’s likely (hopefully) that you already have a financial advisor working with you on your budget, so a retirement coach will usually focus on “lifestyle design,” meaning the mental, physical, and social aspects of your non-working years (although some retirement coaches also include financial advisory services).
A retirement coach can help you understand issues such as:
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Working with transitions. One of the important roles a retirement coach plays is to help you make the leap from a hectic work life to a more relaxed life in retirement. They can help set expectations, prepare you for bumps in the road, and give you practical advice for your new lifestyle.
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Finding a goal. When you retire from your career, what will you focus on? A retirement coach can help you narrow down what you actually want to do with your time: traveling, volunteering, or swimming in your backyard pool every day with a cocktail.
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Managing your daily habits. Retirement changes the dynamics of your life in terms of your health, your social life, your activity level and everything else. A coach can help you create a plan that will protect you from bad habits (see pool cocktails above).
How much does a retired coach cost?
Retirement coaches typically charge between $100 and $300 per hour and typically begin with an interview or questionnaire to assess your goals, preferences and expectations. Based on this interaction, the coach works with you to create a plan that will guide you through the transition and support your vision for retirement. It is usually a very individualized experience, just like any life coaching. It’s all about helping you unpack and simplify what you want to get out of retirement.
When to Hire a Retirement Coach
Many people have retired without the help of a coach, so how do you know if one will benefit you? While only you can answer this question, there are some general signs that you will be a good candidate:
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If you are worried about retirement even though your finances are in order. A retirement coach can help eliminate the unknowns.
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If you have no idea what you will do in your free time .
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If you are experiencing loneliness and social isolation and need guidance on how to cope with the emotional aspects of retirement.
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If you are unsure about specific issues such as health insurance, retirement account withdrawals and taxes, or Social Security rules.
How to find a good retirement coach
If you decide that a retirement coach might be helpful to you, find a Certified Professional Retirement Coach (CPRC). While there are no official requirements to become a retirement coach, and there are other certification programs (although most are more focused on the financial side), the CPRC is the most widely recognized and will ensure that your coach has not only been trained in the various aspects of retirement coaching, but maintain their knowledge of these topics (CPRC certifications require continuing education to remain valid).
You can start your search on the Retired Coaches Association website , which offers lists of retired coaches in every state and even internationally. It can also be helpful to ask other retirees or people planning to retire soon to see if anyone uses a coach they would recommend. Most trainers will offer a free session to see if they are a good fit for you, so take advantage of this and work with someone you feel comfortable with.