THE KEY TO SUCCESSFUL AGEING AND RETIREMENT
A look at the importance of positive psychology.
In my previous article, What you plan for retirement and what you get is often very different, I mentioned that I intend to start a “retirement community”, and I invited readers to email me directly at marius@wealthup.co.za to join my community.
The response has been overwhelming, and I once again realise that this topic needs so much more discussion and support. Thank you to all who sent me their contact details. My apologies for not getting back to everyone yet (I promise I will).
This was a case of the chicken or the egg… I am in the process of developing a website to deal with the challenges of retirement and hope to have it up and running soon. Everyone who connected with me will be added to the community and receive correspondence via the soon-to-be-launched website. I hate spam and useless information. It is my intention to keep the content to the point and useful. That means, just like the articles I write for Moneyweb, articles and information will be limited but relevant, and if I fail in that, please let me know.
Community members are also welcome to let me know if there are any pressing issues or topics that they would like to know more about.
On with it. In my previous article, I said that this article would deal with the five areas that are fundamental to successful ageing referred to as PERMA. These five scientific principles of positive psychology foster human flourishing.
I want to be bold and extend this by adding a sixth area referred to F changing the acronym to PERMAF. This bucks the trend a bit, but after all, I am a financial planner at heart. As a reminder, the acronym is explained as follows:
P = Positive emotions
E = Engagement
R = Relationships
M = Meaning
A = Accomplishment
F = Financial
Let us now delve into each one of these important areas that support successful ageing and enhance human flourishing.
Positive emotions
Positive emotions like gratitude, joy, serenity, awe, and love make us feel alive and vibrant and, at the same time, contribute towards having a more expansive perspective enabling people to widen their point of view.
Imagine children playing hide and seek or adults playing a ball game, engaged in the activity for the pure enjoyment of the game. There are many factors at play here. Physical activity leads to better long-term health; game-playing strategies result in improved problem-solving abilities, and companionship enhances social bonding. As one ages, many of these activities are no longer practical, but we need to find our “game” that still stimulates all of these areas.
Positivity ratios
The positivity ratio serves as a foundation for managing emotions in retirement. Research suggests that for people to thrive and feel positive about themselves and their use of time in retirement, they need three positive emotions for every one negative emotion. Negative emotions are more powerful than positive emotions, so they need to be neutralised by more encouraging sentiments.
(We experience the same emotions when investing. Negative returns have a much more profound impact on investor emotions than positive returns do. As we know, emotions drive investor behaviour.)
Unfortunately, most people fall short of the 3:1 ratio. Retirees can be blindsided by negative emotions and quickly feel insecure, less relevant, and out-of-sync with family and friends. With fewer things to do and less contact with others, they need specific strategies to increase the number of positive emotions they experience to move the emotional needle to the positive side. This can be done by developing relationships, activities and hobbies that foster positive emotions.
We must also understand that it is impossible to eradicate all negative emotions. Negative emotions serve a purpose; they are part of life and an essential part of human experience.
For example, a person transitioning from work to retirement may grieve the loss of their work role because it is a central component of their identity. In this regard, grief serves a purpose as it enables the person to acknowledge the importance of their work role identity so that they can move beyond the loss and redefine themselves without that position.
Engagement (finding flow)
Imagine engaging in an activity where you are so enthralled in the activity that everything just slips by without interruption, with time seemingly standing still. A skier going down a slope with a perfect run comes to mind. Flow can be experienced in many ways and can include mundane (for some) activities like reading a book, cooking, dancing, singing, playing a musical instrument, listening to music etc.
Some people are lucky enough to experience flow while working, negotiating a deal, or spending time with a friend or caring for a grandchild. Flow can be described as an effortless action, felt in the moment and regarded as the best moments in life or being “in the zone”.
How do you find your flow?
The formula is timeless, tireless, contagious energy.
What feels timeless when you are doing it?
What can you pursue without growing tired of it?
What are you talking about when others say, “You really brighten up when …”?
It is important that we all have activities where we experience flow. This allows us to temporarily “vacate” our lives and return refreshed, renewed and re-invigorated, which leads to a better quality of life.
Flow must be personally crafted and intentionally practiced. It is rare for people to experience “flow” when engaged in passive activities such as watching TV. It requires some active involvement by the person before such activities feel as though they provide a refuge from our lives.
Relationships
Independence and individual achievements are valued by society, but there are costs for “going it alone”. These reflect as isolation and loneliness. Loneliness is lethal; it shortens your lifespan – twice as much as obesity.
Dr John Cacioppo, the world’s foremost authority on loneliness, maintains that the number of people in your life does not inoculate you from experiencing loneliness. Rather, it is the feeling of being lonely that places the brain and body at risk.
Loneliness triggers a state of “hypervigilance”. A lonely brain:
Is on the constant lookout for social threats (defensive mode).
Becomes more reactive to negative events.
Perceives daily hassles as more stressful.
Awakens often and experiences fragmented sleep.
Cannot recover from the day’s stressful events.
Subjected to an increase in depressive symptoms.
Has difficulty self-regulating.
A lonely brain is at risk of cognitive and physical decline. A three-year longitudinal Dutch study showed that people aged between 65 and 85 had a 64% increase in the risk of dementia if they experienced loneliness.
We are physiologically and psychologically primed for connection, and it may even increase longevity. It is important to seek out connection; we all need a tribe … Find your tribe!
Meaning
Living a life of meaning necessitates being involved in an activity or a cause that is larger than oneself and which infuses life with a sense of purpose. For many, the relationship between the meaning of life and work is so intimately tied to one another that the loss of employment can feel traumatic.
Getting involved in a meaningful cause provides our lives with purpose. This can mean different things to different people, for example:
Getting involved in environmental affairs;
Helping stray animals;
Mentoring younger people;
Grooming the next generation;
Tutoring; or
Helping the less fortunate.
Our participation in such activities enables us to feel part of something larger than ourselves and makes us feel needed and important.
The last point is important because when we give up our titles, our offices and our responsibilities, it is easy to feel that we no longer matter or that our lives have no merit. Getting involved in something larger may help ease the transition from work to retirement, and it may buffer against depression and decline.
Unlike positive emotions, which are short-lived, meaning has much longer staying power. With a sense of meaning, we tend to feel more positive and fulfilled for a longer period of time.
Accomplishment
Goals, irrespective of how big or small, infuse our lives with structure. Making purposeful efforts to achieve goals generally results in a rewarding and satisfying experience.
For many of us, our need for accomplishment is met by work. For others, it is met by our roles as parents, especially when children are still living at home. The sense of achievement that we garner from our roles as workers/parents can be more challenging to replace than people realise.
The question is, how are you going to reach your sense of accomplishment when you retire or when your child leaves home? In both cases, you may experience:
A sense of loss and grief.
Confusion over one’s identity.
Lack of purpose and meaning.
Feel disconnected from the community.
These are normal transition feelings and challenges. It is important to identify the loss and focus and plan for the next chapter of your life.
Goals are essential to a happy and fulfilling life. Having things to strive for is an essential component of a happy retirement and a defining characteristic of successful ageing.
Not all people are motivated by a sense of achievement. Many people arrive at this juncture of their lives, and their ambitions include a desire to contribute to friends, family or the larger community. Nowadays, people can work way beyond the age of 65 if they choose to, thanks to advances in healthcare and technology. However, what I want to point out here is that there are other ways to feel accomplished, not only through working.
Think about activities that will satisfy your need for accomplishment. There are many; find your niche.
Financial
Since this article is about the non-financial aspects of retirement planning, I am not going to dwell on any financial planning principles. I have covered various aspects of the financial side of retirement planning in previous articles.
I do, however, feel strong enough to state that without proper financial planning and sufficient assets and capital, more stress will be placed on every aspect of PERMA. Hence my decision to add F to the acronym.
As before, you are welcome to send me your details if you are interested in joining my retirement community. The community is for everyone interested in or concerned about retirement, especially the non-financial aspects. The website and relevant articles that expand on the ones in these articles will be made available soon. Please email your details to marius@wealthup.co.za
Let’s work together to thrive, not only survive.
