Chapters

00:00 Understanding Retirement Purpose

02:17 Finding Meaning Beyond Work

03:40 Preparing for Non-Financial Aspects of Retirement

05:18 Actionable Steps for Retirement Readiness

Transcript

Hi everyone, I'm Ryan Earley, vested PERS member, former school business official, and host of the PERS Pro YouTube channel. In our last video, we explored how health and insurance options can dictate your ideal retirement date. Today, we're tackling the third, and I would argue, most Consideration of deciding when to retire, your purpose. Let's get started.

Too many retirees spend decades planning and knowing what they are retiring from, only to realize a year into retirement they have no plan for what they were retiring to. Without the structure of a career, retirees can fall into what experts call a purpose crisis. The statistics on this transition are a wake-up call for anyone nearing their PERS retirement date. Purpose Crisis: According to an Edward Jones study, 31% of retirees admit to struggling to find their sense of purpose. Depression roller coaster: According to the National Institutes on Health, rates of depression go on a roller coaster ride, decreasing the most the first one to three years post retirement, an 11% reduction during this honeymoon phase, then gradually increasing to the point that the risk of depression 10 years post retirement is actually higher than the year of retirement. Mortality risk: According to the US Health and Retirement Study, retirees were 40% more likely to experience a heart attack or stroke than those who were still working. The increase was more pronounced in the first year of retirement. Stress: According to the Holmes-Ray Stress Scale, retirement is ranked 10th on the list of life's most stressful events. In fact, retirement is tied with marital reconciliation, and ahead of stressors caused by pregnancy, career changes, and major changes in your financial state. Boredom: According to a study by the Odd Fellows, of the retirees who reported feeling boredom, 34% felt bored within three months of retirement and 66% felt bored within the first year of retirement.

So, what are the retirees who get it right actually doing? It's not just about staying busy, it's about finding a sense of contribution and impact. Research shows that retirees with a high sense of purpose often cite these four primary pathways. One, helping others: Volunteering or mentoring provides a sense of contribution that replaces the public service drive that so many PERS members have. Two, deepening relationships: Shifting focus from coworkers to community, friends, and family helps combat the isolation that often follows the end of a PERS career. Three, play: Social physical activities such as golf, ballroom dancing, traveling, pickleball, walking, group exercise, and more can help you develop healthy habits while establishing new friendships and reinforcing old ones. Four, learning and generative hobbies: Many older Americans pick up a new or old hobby like cooking, gardening, woodworking, music, photography, and pottery. These sorts of hobbies require continuous learning, which sharpens your mind, provides opportunities for social interaction, and provides meaning and accomplishment with your new one-of-a-kind generative work. Also realize that your purpose isn't going to be static. While early retirement might focus on active passions like play, purpose often shifts towards deepening relationships as members age.

You wouldn't wait until the day you retire to check your PERS contribution balance. Similarly, you shouldn't wait until your last day to decide what you're retiring to. How do you prepare for the non-financial side of retirement? Here's what works best. Consult a therapist: If your identity is 100 % tied to your job, a therapist can help you navigate your feelings and emotions of leaving your career and help you rediscover who you are outside of the office. Consult a retirement or life coach: Unlike therapists who often focus on exploring past feelings and emotions, a retirement coach or life coach starts with the present to help you build a forward-looking plan for how you will spend your time and build your lifestyle. Read and reflect: Books can provide a framework to think about your interests, activities, and relationships in retirement. Map it out: Before you retire, complete a workbook or a life map. Summarize your purpose and how it will change as you age. Experiment: Start your retirement hobby or volunteer build furniture in retirement, start that work today. If you want to volunteer, do it on Saturdays. The timeline. How soon should you begin preparing? Experts suggest you should start planning the non-financial side of retirement a few years prior to your retirement date. It is never too early to start to find your purpose in retirement.

Here are your action items for today for those that think they are ready to retire. 1. Create your vision. Write down exactly what a Tuesday morning looks like three years after you retire. If you can't fill that morning with something meaningful, you are not ready to retire. Two, conduct an interview. Call one retired PERS member friend this week. Ask them two very simple questions. What gives you a sense of purpose? And what does your week look like? Three, take a trial run. This is something I highly recommend. Use a week of vacation or a long extended break to live exactly as you plan to in your retirement. If you plan to move, you better spend time in that location. If you plan to take up a hobby, try it now. If you plan to watch the grandkids, offer it and do it for a week. If you plan to volunteer your time, show up. Just make sure you are living exactly as you plan to in your retirement. If you feel bored, lonely, lost, stressed, or even depressed any day during the trial run, you are not ready to retire.

I hope this video helps you realize having purpose in retirement is critical before deciding to retire. In our next video, we'll move to the fourth major consideration when deciding when to retire, relationships. Please make sure you subscribe so you don't miss this and other videos in our new retirement series. If you found this video helpful, you can thank me by hitting the thumbs up button and sharing it with other PERS members. If you have a follow up question about PERS or anything else related to personal finance, please visit our website at perspro.ms and submit your question or topic for a future episode. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.

Disclaimer, this video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Public Employees Retirement System of Mississippi. Always consult a qualified professional for personal advice specific to your situation.