12/19/2024
The 8,000 Days Workbook
One of our favorite resources on the topic of retirement is the MIT AgeLab. Their website has a wealth of information and resources on the topics of retirement and longevity planning. Recently they published a piece that caught our attention, the “8,000 Days Workbook.” The workbook is based on research from the Hartford Funds and provides an interesting perspective on how to plan for a successful retirement.
The title is based on the premise, the average retirement lasts about 8,000 days. Rather than thinking of retirement as one long phase, the workbook helps to think about your retirement in four distinct phases. Below we highlight the four phases and some of the issues to consider in each.
Honeymoon Phase: if you retire around age 65, you will likely enjoy about 20 years of good health. This will be a time filled with lots of leisure activities, travel, volunteering, part-time work, etc. Here are a few things to think about at this stage:
Big Decision Phase: now that you have more time in retirement it is important to start thinking about some of the big decisions you will face, including:
The Navigating Longevity Phase: in this phase, you may begin to experience greater longevity risks, simply put, your health, mobility, and cognitive abilities are likely to start declining.
The Solo Journey Phase: in this phase, you need a plan for what happens if you lose your spouse. The reality is women typically outlive men, with 42% of women over age 75 living alone.
Everyone’s retirement journey will be different, however, planning for the different phases of retirement will help you be prepared to thrive in retirement. To download a copy of "the 8,000 Day Workbook" you can visit https://Agelab.mit.edu or give us a call.
The title is based on the premise, the average retirement lasts about 8,000 days. Rather than thinking of retirement as one long phase, the workbook helps to think about your retirement in four distinct phases. Below we highlight the four phases and some of the issues to consider in each.
Honeymoon Phase: if you retire around age 65, you will likely enjoy about 20 years of good health. This will be a time filled with lots of leisure activities, travel, volunteering, part-time work, etc. Here are a few things to think about at this stage:
- Try to find a retirement mentor - someone who is already retired and thriving and can be a valuable resource.
- Start exploring possible work options - focus on finding rewarding jobs that meet your income goals.
- Consider developing a plan to care for parents and kids, if you are a care provider.
Big Decision Phase: now that you have more time in retirement it is important to start thinking about some of the big decisions you will face, including:
- Where do you want to live and what can you afford?
- Identifying your purpose in retirement - studies show that retirees with a ‘purpose’ are much happier in retirement.
- Develop a spending plan - create a plan to tax-efficiently spend your assets in retirement.
The Navigating Longevity Phase: in this phase, you may begin to experience greater longevity risks, simply put, your health, mobility, and cognitive abilities are likely to start declining.
- Get organized - have all your finances, power of attorney, and healthcare needs organized and in place.
- Time to prioritize yourself - how you will get things done and take care of your needs.
The Solo Journey Phase: in this phase, you need a plan for what happens if you lose your spouse. The reality is women typically outlive men, with 42% of women over age 75 living alone.
- Develop a care plan - do an inventory of everything you may need someone to help you with and have a plan ready to go when needed.
- Reinvent yourself - losing a spouse as you age can be devastating, as the pain lessens, it is important to reclaim your life and embrace the future.
Everyone’s retirement journey will be different, however, planning for the different phases of retirement will help you be prepared to thrive in retirement. To download a copy of "the 8,000 Day Workbook" you can visit https://Agelab.mit.edu or give us a call.