Reimagining retirement

Who will you be in the future? It’s a question filled with possibility. While it’s easy to stay focused on the demands of the present, looking ahead invites us to imagine the life we want in retirement and begin to put the financial foundation in place that can help support those dreams. By connecting with your future self, it becomes easier to align today’s decisions with tomorrow's priorities. 

Why thinking about your future self matters

If you haven’t spent much time thinking about your future self, now is a perfect opportunity to begin. Life expectancy is steadily increasing, and you could optimize this longevity by planning for retirement in a new way. Research from Hal Hershfield, professor of marketing and behavioral decision-making at UCLA Anderson School of Management, finds that visualizing our older selves and accounting for your future needs and desires may lead to decisions that can pay off in retirement.

Here are some creative strategies for money, wellness and lifestyle, inspired by Hershfield’s research, to help you envision and prepare for your retirement.

Money: Financial planning strategies for a more secure future

What opportunities and ambitions will you pursue in the future? Will you dive into a second act, try new hobbies or open a small business? Do you want to travel, spend money on grandchildren or build a bigger home to make room for visiting family?

Saving for retirement is tricky for many reasons, but answering questions about your future can help you optimize your savings and address some common obstacles in financial planning. Even if you’re actively saving, it’s still tough to forecast how much you’ll really need. “People just grossly underestimate health care and long-term care costs in retirement,” says Grant Kvalheim, Chief Executive Officer of Athene, a provider of fixed annuities. “Plus, many of today’s retirement plans place heavy responsibility on the individual to identify any gaps they may have as they plan their financial futures.”

Consider these ideas to get started:

Identify your future goals and lifestyle plans

Even if you’re aiming to work as long as possible, it’s smart to plan for a future where that may not happen. Start the process by setting small, actionable goals to help you build financial literacy. For example, research a retirement plan that suits your outlook, schedule time on your calendar to educate yourself and discuss savings strategies with others. Are you currently working with a financial professional? If not, consider meeting with one. If you’re not sure who to see, ask family and friends for recommendations.

Estimate future expenses with practical math

What are your monthly expenses now? What might they be in a decade? How much is required to pay your mortgage, make a car payment and buy food? A monthly figure is easier to grasp and multiplying it can help you estimate the money you’ll need for the life you want.

Consider supplementing savings with additional retirement vehicles

“We encourage people to have a full financial plan — a great way to save for retirement on top of a 401(k),” says Kvalheim. “A fixed-indexed annuity is pretty unique in replicating some of the features that people used to enjoy in a defined-benefit pension plan, which most people no longer have.”

Wellness: Prioritizing health for the long term

It’s never too early to prioritize physical and emotional wellness, especially if you hope to maintain an active lifestyle in your next chapter. However, just like financial planning, designing a proactive wellness routine that incorporates your future self isn’t always intuitive.

It’s hard to measure how incremental, daily choices — what to eat for lunch, whether to bike or drive, have dessert or abstain — can add up in a big way over time. It’s also challenging to imagine unforeseen health issues or think about how aging’s natural toll might impact the future. Yet, we could actually risk increasing the likelihood of a major health issue disrupting retirement if we disregard future realities.

Lifestyle: Building meaningful connections for retirement 

As you position yourself for a fulfilling retirement, savings and health are just part of the equation. Staying connected through social groups and meaningful relationships can play an important role in healthy aging. By nurturing friendships and building strong support systems now, you may be able to preemptively combat potential loneliness or boredom down the road.

Strengthen relationships with gratitude

Write an email to someone who helped you in the past. For both you and the recipient, the gesture could reinforce a lifelong connection that provides joy as you age.

Expand your social network and purpose

Explore hobbies and social activities outside of your career. Fostering a sense of purpose and having a space to connect with others may potentially ease the transition to retirement.

Create memorable experiences today

Incorporating your future self into today’s outlook is essential, but it’s also important to value the present with the people you love. Retirement preparedness isn’t only about smart savings and healthy choices. It’s also about making memories that can enrich your golden years. Splurge on a family trip, commit to the home improvement you’ve been dreaming about and indulge in a dinner (and dessert) with friends. Your future self will thank you.

Retirement FAQs

As you plan for the future, these answers to common retirement questions can help you make proactive, informed decisions.

Q1: How can visualizing your future self help improve retirement planning?

Visualizing your future self helps clarify what you want for retirement and how you picture your day-to-day life to be. With that in mind, you may likely feel more motivated to make smarter financial decisions today that help support those long-term goals.

Q2: What should I consider when estimating future retirement expenses?

Start by reviewing your current monthly spending, then estimate how expenses may change over time. Consider essentials like housing, healthcare and groceries, as well as non-essentials including travel, entertainment and hobbies. A future-focused budget helps clarify how much income you’ll need in retirement.

Q3: How can wellness habits today impact my retirement years?

Small daily choices, such as eating well, staying active, prioritizing sleep and managing stress, can support better long-term health. Building healthy habits now may help reduce medical risks and allow you to maintain the lifestyle you want in retirement.

Q4: Why are social connections important for a fulfilling retirement?

Strong relationships can boost mental health, create a sense of purpose and reduce the risk of loneliness as routines shift in retirement. Expanding your social network now helps build support systems that you can count on in years to come.

Q5: What financial tools can help supplement traditional retirement accounts?

Beyond 401(k)s and IRAs, clients may consider options such as fixed indexed annuities (FIA) or other tax-advantaged vehicles. These tools can complement existing savings strategies and help create a more diversified retirement income plan.

How fixed indexed annuities can fit into a modern retirement plan

Retirees are facing several challenges, including inflation, market volatility and potentially outliving their savings. Adding a FIA to a retirement income strategy can help protect your savings, provide tax-deferred growth¹ and create a source of guaranteed income in retirement. Having this retirement “paycheck” can help cover living expenses, fill income gaps left by Social Security and give you more financial freedom to pursue the lifestyle you’ve imagined for your future self.  As you look toward the future, Professor Hershfield sums it up with this advice: “If we spend some time to actually better envision who we'll be, where we'll be, what we'll be spending our time on, who we'll be spending our time with, then we can start to take the steps necessary to step into our future self’s shoes.”

Want the most from your retirement? Get smarter with Smart Strategies from Athene. Your source for tips, tools and financial solutions that can help you live your best life.

¹Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.