7 habits of successful retirees, and how to become one yourself

By CD Moriarty

I have seen scores of people build happy and satisfying retirements - money is a small part of it

When it comes to retirement a lot of people are worried. They're worried about not having enough money, inflation, their health, and Social Security. But I talk to scores of retirees in my work as a financial planner and have found that it can be a satisfying and happy stage of life.

A successful retiree is someone who consciously spends their money and their time. They enjoy what they have and create a new lifestyle that works for them. If you aspire to be a successful retiree, look beyond the dollars you are saving. Money is important for retirement, but so is what you do once you make it to that magic age. Learn what it takes from what thriving retirees are doing now.

Attend music and cultural events. Barbara, a recent retiree in ?D?elray, Fla., will pick a free concert in the park, rather than a concert at a theater, preferring the relaxed atmosphere and attire. In Florida, many over 55 communities offer outdoor performances in walking distance for her. Her local town sponsors outdoor tribute bands from the Beatles to Queen. Retirees have time and flexibility to seek out lower cost and free events.

Do the gardening themselves. Sandy volunteers to do the gardening at her condo complex ?in Fort Myers, Fla. She gets outside most days and uses gardening as her exercise. The bonus is she has gotten to know many of her neighbors better. Retirees often have more free time and this applies to many tasks around the house. If they enjoy it, they will do it. They may hire some help but understand that they can chip away at it every day versus one big weekend push as in their working days.

Eat at home. John, for example, never had time to cook, and now he loves to feed others in his home in ?Methuen, Mass?., just like his grandmother did. Retirees often like to cook and share recipes. They are home more so accept that life is different. Part of this is because they have so much to keep them busy at home or locally.

Enjoy life. Marcie and Ken take one trip overseas a year to visit their daughter and grandchildren who live in Europe. That trip is a "nonnegotiable" expense. Otherwise, they are content at home in ?Cape Cod, Mass. Happy retirees treat themselves to what matters most, a weekend away, a special sporting event or a big family trip. Mainly they focus on hobbies they enjoy and spend time at home. They like where they live and relaxing at home is something they appreciate.

Take care of what they own. Kirk has no need to acquire any more "stuff," he says. He and his wife have already downsized once and want to spend their time in other ways. He has time to tinker in his garage ?near Pittsburgh, and wait in the car dealership as his vehicle is serviced. Two pleasures that he did not have when working. Whether it is their home, car, or other possessions, with more time, retirees are maintaining what they have. Taking care of what they have, whether a car or home or sporting equipment, gives them satisfaction and saves them money.

Spend money only on what they enjoy. Typically, retirees are more discriminating when it comes to purchases. This is not about the money as much as the space and time needed to acquire and care for things. The older you get, the fewer things you need. For example, clothes are casual and for everyday wear, they don't need a closet full of work clothes.

Attend to health. Successful retirees are proactive and responsive to health issues. They are investing time and money in having the best retirement ever by caring for their bodies. Whether walking, aerobics, golf or pickleball, they stay active for fun and health. A gym membership is an investment in health.

If you aspire to be a successful retiree, now is the time to get started. Making slight changes today will help you adapt to a successful retired lifestyle, and changing one or two financial habits will make for a long road of your retirement contentment.

Take three steps to get there now:

1. Adjust to living on less. By living on less of your income today, you will have more for the future and create a lifestyle that is sustainable. Minor changes are called for rather than sweeping overall changes of your spending. Automate your savings by having a small amount of money go directly from your paycheck to savings. Whether you pick $50 a month or $100 a paycheck, less in your pocket is less for you to spend.

If you are one of the 60% of employees with a defined-contribution plan, contribute to it. (Not everyone does.) Start small but enough to get the employer match if there is one. Then, each year increase your retirement savings by 1 % of your salary until you max out. Most people set their retirement contribution when they start a job and never change it.

2. Change one financial habit to prepare for your upcoming lifestyle change - even if you are 10 years away from retirement. Begin to see how small adjustments add not only financial flexibility to your life, but also a sense of choice.

We all know about the "latte" effect, changing your coffee buying habit. But what about "No spend Sundays" or one or two weekend nights a month where you stay home and relax to save money and get a breather from a busy lifestyle. One couple, Jack and Paula chose this and used the extra money to save for a new home, one they could enjoy in retirement. With a bigger goal, adjusting today will be easier.

Even refiguring your family's gift giving plans - whether for major holidays, birthdays, or other life events. Discuss now with your children and loved ones, your goal to save money for retirement by adjusting your lifestyle now. Tell them your new plan for gift giving ahead of time. This is about reducing the spending of your giving, not stopping all gifts. That extra money will grow with your retirement plans.

Adjusting your habits today serves two purposes for when you do retire. First, your income will be less, and you will be re-evaluating everything. This is good practice. Second, doing it now creates more money for your retirement and slowly adjusts the expectations of those around you?.

3. Take care of the financial long game today. Spending money is not what many expect when you are saving for retirement. However, your home is an investment. The better you take care of it now, the more it is worth to you in the future. Whether you are planning to sell it or age in place, getting that new roof when you need it, or additional insulation means more than an expense. That cost becomes an investment in your future.

Your other large assets, like cars, appliances, and sporting equipment, are depreciating assets. Once the money is spent, the value goes down, but extending the life of large purchases with diligent care and maintenance means you are spending less today. Eventually, things need replacing but do not jump the gun when a "tune up" would take care of the issue.

And while you are caring for all the important things in life to take you into successful retirement years, take care of your health. Regular checkups, eating right and exercise will maintain your body for the long game.

Planning and getting ready for retirement are essential at every age, but it goes beyond simple math. Consider becoming a successful retiree yourself by creating a vision of what is possible and then preparing today. Retirement is within reach.

Join our Retirement conversation in our Facebook community: Retire Better with MarketWatch. Do you have questions about retirement, Social Security, where to live or how to afford it at all? We want to hear from you. Write to HelpMeRetire@marketwatch.com and one of our reporters might reach out to you to learn more.

CD Moriarty, CFP, is a Vermont-based financial speaker, writer and coach.

-CD Moriarty

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05-13-24 1141ET

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