Why You May Not Retire on Time, Ep #194

Do you know if you’ll retire on time? In this episode, I explore a question I often hear: Why do some people retire on time, confidently, and on track, while others keep pushing it off or feel like it will never happen? Additionally, I examine the differences in retirement experiences between men and women.  Along the way, I share personal insights, stories from clients, research findings, and practical planning tips that can help you prepare for a retirement you truly enjoy.

I share a powerful study from Harvard Business School that really stuck with me. This study shows how important it is to not only think about your goals but to write them down and make a plan to achieve them. When it comes to retirement, I always ask people to be as specific as possible, right down to the exact month or even day they want to retire. The more detailed you are, the more likely you are to hit those targets.

I also talk about how retirement often looks different for men and women. Women frequently take on caregiving roles and are more likely to need long-term care themselves, making healthcare planning especially important. Men typically pay more for Medicare supplements, while life insurance tends to be cheaper for women. I’ve also noticed that women often prioritize legacy goals, while men usually have pricier hobbies. Understanding these patterns can help couples build a more balanced retirement plan.

Another important topic I cover is the common belief that expenses and taxes drop significantly in retirement. I don’t buy it. Healthcare costs, insurance premiums, and daily expenses like trash service, postage, and groceries keep going up. Plus, inflation varies by location, so where you live matters a lot in your retirement plan. It’s important to factor in local cost-of-living differences because they can impact your budget quite a bit.

You will want to hear this episode if you are interested in…

  • (00:00) Intro.
  • (03:30) How a specific retirement plan shows if you’re on track.
  • (06:30) Insights from a Harvard study on goal setting.
  • (09:40) Differences in retirement planning for men and women.
  • (17:20) Will expenses be cheaper in retirement? 
  • (24:00) our free resources to help your planning.

The Power of Setting Goals

In my experience, the biggest difference between people who retire on time and those who don’t will come down to clarity and commitment to goals. I shared an analogy from a listener who said planning for retirement felt like driving down a highway with no off-ramp in sight. It’s hard to feel like you’re making progress if there’s no clear destination.

That’s why having a specific retirement date and vision is so important. A famous study from Harvard’s MBA program showed that only 3% of students wrote down their goals, and those 3% ended up earning 10x more than their peers. Written goals, along with a plan to reach them, massively increase your odds of success, whether we’re talking about retirement, personal, or professional goals.

Retirement Differences for Men and Women

I also discussed some of the key differences in how men and women experience retirement, from spending patterns to caregiving roles and longevity risks. Statistically, women are more likely to provide care to aging parents or spouses and live longer, which means their need for long-term care is higher and more expensive.

On the other hand, men often engage in more costly hobbies or discretionary spending. Women also tend to be more focused on legacy goals, like leaving something behind for kids or grandkids. These differences should factor into how couples plan together, especially when every day becomes a Saturday in retirement.

On the Overlooked Myth of Retirement

One common myth I wanted to challenge is that your expenses and taxes will automatically go down in retirement. In reality, costs like Medicare premiums, insurance, and everyday living expenses are all going up (often faster than expected). For example, Medicare Part B has increased by over 5% per year on average for the last 20 years, and a recent study predicts an 11% hike next year.

Inflation also varies by location, so if you plan to relocate, consider the cost of living in your new area compared to where you are now. Retirees will also spend more on healthcare over time, especially as demand rises among aging Baby Boomers. So while some expenses may go down, it’s risky to assume your overall cost of living will.

 

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