In 1943, the psychologist Abraham Maslow wrote a paper called “A Theory of Human Motivation.” In it, he proposed that all humans have what he called a “hierarchy of needs” — the goals, desires, and non-negotiables that people need to be healthy and happy. His theory quickly caught on in popular culture, and these days is often portrayed in pyramid form, like this:
Many retirees and pre-retirees, when planning for retirement, often only think of one need: “Will I have enough money?” This is understandable, because that is in fact one of the most important questions to address for retirement.
Enough money is the benchmark for most pre-retirees. Enough can be defined as that amount which will pay your estimated living expenses and deal with all financial demands brought on by inflation, health, family, philanthropic desires, and your own personal bucket list.
But retirement is about more than just having enough money. In my experience, most retirees still have their own personal hierarchy of needs that money alone cannot satisfy. In fact, sometimes, the issue of “enough money” is probably the easiest part of the retirement planning equation.
A more difficult task is coming to grips with the emotional or psychological issues of retirement. Many of us draw an identity from our occupations. Work gives us something to do; it provides goals, a reason to get out of the house every day. It also provides an important social aspect to our lives.
When Social Security was set up by President Franklin Roosevelt, the life expectancy of the average American was in the low 60s. If you made it to retirement, about all you could do was sit in a rocker or go fishing for a few remaining years. Not so today.
That’s why I encourage those contemplating retirement to find something they like to do, or even work longer. It’s crucial to always have a goal or accomplishment factor by which they can measure your achievements and personal growth. (Maslow would call this “self-actualization.”) This helps keep your mind in gear, and it also continues to satisfy our social needs.
Getting involved in activities that provide enjoyment and diversion can be an important method in freeing ourselves from the harness of work. Physical activity in its varied forms assists many people in the process of changing gears. Becoming a volunteer or taking up a hobby can also be rejuvenating.
Recently I met with a client who is well along in retirement … although he looks and acts 25 years younger than the clock. As we talked about retirement living, he passed along his secrets for successful retirement:
“Watch what you put in your mouth, get plenty of exercise, always put a little aside…and never stop growing!”
In short, when planning your retirement, don’t just focus on having “enough.” Focus instead satisfying every level of your own personal hierarchy of needs.