In Planning for Retirement, Don't Forget to Invest in Friendships Too - Good Life. Better. (2024)

Retirement planning is usually about money, especially the big question of how much we need to have saved to maintain the lifestyle we want, all the way to the end. A second priority might be spending more time with a significant other, or living close to family.

But what about friendships? As Blanche, Dorothy, Rose, and Sophia made clear, being happy in retirement isn’t just having enough money, or being able to attend your grandson’s soccer game.

Your friends will be the people you travel with, or go shopping or to the movies with, or who you ask to drive you home after a colonoscopy, knowing they will resist asking embarrassing questions (or at least, laugh with you when they ask them).

If you let your friends slip away without a fight, you may end up regretting it.

It’s Not Always Easy To Make New Friends

Many years ago, I remember visiting my grandmother in the assisted living facility she had recently moved into, and asking her if she had made any friends. I assumed the answer would be yes because all the people there were old and therefore must have lots in common (it was not).

Looking back now, I can see that it was a poorly thought-out question. Being around the same age doesn’t mean you are going to have a ton in common with someone. If that were the case, then high school would have been awesome and not awkward in the slightest (it was not).

Likeability Is Just One Factor

And it isn’t just about your likability (although, be honest with yourself on this one), or your ability to tolerate the foibles of others long enough to discover attributes that make you want to spend time with them.

It’s about these two things plus your willingness to put yourself in situations where you can meet people with whom you share common interests and who are also looking to make new friends.

A Case Study in Forming Friendships

Since I was 23, I have lived in three major cities and in each my ability to develop deep and lasting friendships was very different.

In Planning for Retirement, Don't Forget to Invest in Friendships Too - Good Life. Better. (1)

In city #1—the only time I have lived on the West Coast—it was really hard. I am sure a lot of this was because we were all in our early- to mid-20s and still trying to figure out our ass from our elbow. Nevertheless, I would often head home after a party thinking it had felt more like I had been a participant in a play than a conversation. Friendships Maintained: 1

In city #2, now back East and in my late 20s, I definitely found it easier to make friends but the friends I made were in very different stages of life than me. They were dating and getting married and having babies whereas I was single and had two cats.

We were all, for the most part, happy in our lives but our priorities for our free time were very different. They cared about me, and celebrated my successes and commiserated about my failures. But they just couldn’t give me as much of their attention as I could give them. Friendships Maintained: 3

In city #3, which I moved to in my early 30s, the number and quality of the friendships I have developed continues to amaze me. A big part of this is me, and the increased confidence I have in the value I bring to the friendship.

But it also comes down to being able to find people with whom I share interests and goals and who didn’t already have such a close circle of friends that they didn’t have the time to invest in forming new relationships. Friendships I Hope to Maintain: 10? 12?

What If The Community I Retire to Is High School with Walkers?

You may be thinking that I am being a bit premature in worrying about who is going to drive me home from my colonoscopy in 20 years and you may be right. I have always been a planner.

But I have been in situations where I haven’t had a lot of good friends and I have been in situations where I have and I will take the latter any day. If I don’t plan to remain connected to my current friends, I don’t think my retirement will be as rich and as satisfying as it could be.

But My Spouse and Kids Will Be There For Me!

I don’t know how to make this point diplomatically so I am just going to say it: if your significant other is a man, and you are not, chances are you will outlive him. By several year.

And your kids and/or nieces and nephews? Well, think about how much time you have right now to devote to the generation above you. Can you spend as much time with them as you know they would like? Probably not.

So that brings us back to friends.

Four Actions You Can Take To Maintain Your Friendships

One of the phrases we tell kids when they are struggling to make friends is “you have to be a friend to make a friend” and that is still applicable even as adults.

Four ways to be a friend are:

Stay in touch. This is an obvious one but one I think trips us up most often. Maybe you think that you can’t reach out unless you can sit down and write them a long email updating them on your life, or that you need to find the email they last sent you and re-read it and respond to it. Guess what? You don’t have to do any of that.

You can let them know you are thinking of them with a short post on their Facebook page, or with an email or text. Today doesn’t have to be the day you re-establish that super deep connection you had years before. Today is the day you prevent that bridge from burning so one day in the future when you do have time, that friendship still exists.

Actually be interested in their lives. When you do reach out, don’t just talk about yourself but ask them how they are doing and respond to what they tell you. If you can’t remember the particulars, that’s okay. They will be touched if you remember even some of their story.

Let them help you. Most people like to be needed. If you are super independent like me then this one might be a little hard but it is a great way to re-establish a connection and remind the person why you became friends in the first place.

Plan visits every few years. Nothing beats face-to-face when it comes to keeping friendships alive. The good news is that it doesn’t have to be very often to be effective.

I have a friend I met in England more than 20 years ago that I still consider one of my closest friends and, while in recent years we have seen each other about once every 12 months, in years prior we would go four years or longer between visits. Those visits reminded us of the joy we find in each other’s company and allowed us to sustain the friendship until the next opportunity to see each other arose.

Who Will Be Your Golden Girls in Your Golden Years?

I already have a list of people I am going to do my best to maintain friendships with, and am looking forward to the time when we get to hang out without having to worry about our 9-5s. Do you? Let me know in the comment section below.

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In Planning for Retirement, Don't Forget to Invest in Friendships Too - Good Life. Better. (3)

In Planning for Retirement, Don't Forget to Invest in Friendships Too - Good Life. Better. (2024)

FAQs

Why friendships are even more important in retirement? ›

Social Connections Boost Mental Well-being

This void can lead to feelings of loneliness and even depression. However, maintaining strong friendships can help fill this gap, providing essential social connections and emotional support.

What is the best way to invest at 50 years old? ›

You should be using a retirement account of some sort to invest your money. Whether it's a 401(k), a 403(b), a traditional or Roth IRA or some other plan, having an investment vehicle to put away money is key. If you're really kicking up your savings at age 50, chances are you're decently close to retirement.

Is it too late to start investing at 55? ›

Yes, you can invest in your 50s and 60s. In fact, it's a good idea to continue investing for as long as you are able, as this can help to grow your wealth and prepare for retirement.

What points from this video can you use to explain why it's important to invest for retirement? ›

Points from the video that highlight the importance of investing for retirement include the potential for long-term growth, protection against inflation, the necessity of building a retirement fund, the advantages of compounding interest, and the significance of starting early and consistent contributions to retirement ...

Do friendships affect longevity? ›

Chopik and his coauthors found that those who had high-quality friendships actually lived longer. Study participants took the survey three times over eight years and those with the good friends were 24% less likely to die during that time.

Why friendships are more important than relationships? ›

Research shows that spending time with friends improves mental health more so than spending time with a spouse and that people are happiest when they're with their friends and their spouse, not just their spouse. Friendship comes with health benefits too.

Is 50 too late to start saving for retirement? ›

Experts say even in your 50s, it's not too late to take steps to get in better financial shape. “While retirement is an exciting vision for a lot of people, the transition can be really stress-inducing,” said Keri Dogan, senior vice president of financial wellness and retirement income solutions at Fidelity.

What to do if you are 60 and have no retirement savings? ›

Experts say you should have 10 times your income saved to retire by age 67—here's what to do if you aren't yet there
  1. Estimate your retirement savings and income needs. ...
  2. Stay relevant in the employment market. ...
  3. Write out your retirement strategy. ...
  4. Catch up on your savings using tax incentives. ...
  5. Seek professional financial advice.

What is the average net worth of a 50 year old couple? ›

Average net worth by age
Age of head of familyMedian net worthAverage net worth
35-44$135,600$549,600
45-54$247,200$975,800
55-64$364,500$1,566,900
65-74$409,900$1,794,600
2 more rows
Oct 27, 2023

What is the $1000 a month rule for retirement? ›

The $1,000-a-month retirement rule says that you should save $240,000 for every $1,000 of monthly income you'll need in retirement. So, if you anticipate a $4,000 monthly budget when you retire, you should save $960,000 ($240,000 * 4).

Can I retire at 65 with no savings? ›

You can still live a fulfilling life as a retiree with little to no savings. It just may look different than you originally planned. With a little pre-planning, relying on Social Security income and making lifestyle modifications—you may be able to meet your retirement needs.

What happens if you have no retirement savings? ›

Individuals who have not saved for retirement and who still own homes can turn to their homes as a source of income. For some, this could mean renting a portion of their space as a separate apartment. Another option is to take a reverse mortgage on a home, although doing so can be costly and complicated.

In what order should you spend down your retirement accounts? ›

One I mentioned earlier is you might want to draw down some of those assets that are subject to RMDs early in retirement. Conventional wisdom would tell people to take money out of their taxable account first, and then tax-deferred, and then Roth.

What order to spend retirement money? ›

What's the order in which I should tap into my retirement accounts? In this case, the conventional wisdom goes that you should withdraw from your taxable accounts first, then tax-deferred, then tax-free.

How much should I have in stocks at age 65? ›

At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).

Why do friendships matter for survival? ›

People who have friends and close confidants are more satisfied with their lives and less likely to suffer from depression (Choi, K. W., et al., The American Journal of Psychiatry, Vol.

Why are friendships important as we age? ›

Friendships prevent loneliness and depression.

One of the most apparent benefits of friendships is its ability to reduce loneliness, isolation, and depression in seniors. Seniors who lack social connections are more susceptible to declining mental and emotional health.

What is one effect of strong friendships among those who are 50 years and older? ›

Friends can strengthen our immune system, help us recover more quickly from illness, sharpen our memory and even help us live longer.

What age are friendships most important? ›

This is a sentiment many people might recognize, particularly from their teenage years: Most 10- to 18-year-olds name a friend as one of the top three most important people in their lives (Kiesner et al., 2004).

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