A New Way to “Picture” Retirement

When many of us think about preparing for retirement, we picture spreadsheets, calculators and usually, sitting down with a financial professional. But checking out an illustrated guide? That probably doesn’t make your list.

Nationally renowned retirement author and researcher Steve Vernon believes that’s exactly what makes his latest project so effective. He’s the brains behind “Retirement Illustrated,” a visually driven guide designed to help people understand and act on the most important retirement decisions they’ll ever make.

WHY AN ILLUSTRATED GUIDE WORKS

“Retirement Illustrated” is an online series of short, illustrated chapters that follow several pre-retirees and retirees as they navigate real-life retirement decisions. Each visual story takes just five to ten minutes to read, introducing big retirement questions in a way that feels easy, rather than overwhelming.

“What I wanted to do was create something that was more approachable and also break it down into bite-sized chunks,” says Vernon. “You can snack on this. You don’t need to eat a whole meal. It’s just something you can browse easily.”

The project draws directly from Vernon’s decade of research at the Stanford Center on Longevity. “In our studies, we showed how people make decisions, and it clearly illustrated that people have trouble envisioning and planning for these longer lives,” he adds. “So, I wanted to help people develop a picture of how they wanted to be, and what that can do is motivate them to plan differently.”

Beyond dollars and cents, the guide highlights how emotions influence retirement decisions – and models helpful behaviors like talking openly with spouses, family members and friends and learning from one another along the way.

BIG DECISIONS, BITE-SIZED STORIES (STARTING WITH SOCIAL SECURITY)

One topic Vernon returns to again and again – Social Security. Delaying benefits, he says, can be one of the most powerful income decisions people make, and “Retirement Illustrated” helps readers weigh that choice visually.

In one scene, friends chat over coffee about Social Security’s advantages, including guaranteed, inflation-protected income. One man mentions waiting until age 68 to claim. A waitress overhears and insists Social Security will be bankrupt before she ever sees a dime.

“This gave me an opportunity to address this common misconception in a story format,” says Vernon. “And, people remember pictures rather than me telling them, just ‘hey, you ought to delay taking Social Security.’ Seeing someone who’s relatable to them in a picture format will help them remember that better.”

INTRODUCING THE “WIDOWS’ MONEY CRUNCH”

Another critical topic Vernon tackles is what he calls the “widows’ money crunch.” Through a group of women sharing personal stories, one character explains how her family’s income dropped sharply after her father died, and their expenses didn’t budge much, resulting in the “widows’ money crunch.”

“That’s a very common situation that I’ve seen happen over and over again,” says Vernon.

The story then shows a woman explaining how working with a financial professional – and developing a solid plan – helped ease her anxiety. “Over and over we’ve seen, if you’ve got a plan, that’s a solid plan that makes you worry less,” he adds.

PICTURING THE “PAYCHECK REPLACEMENT THEORY”

A major theme throughout “Retirement Illustrated” is creating a reliable income that lasts a lifetime. Vernon introduces the idea of “personal retirement paychecks,” steady income streams designed to replace a traditional paycheck.

“When you’re working, you’ve got these monthly paychecks coming in, and that puts discipline on you,” he says. “You can’t spend more than those paychecks, right? So let’s keep that discipline going in retirement, and that’s why I like the paycheck replacement theory.”

For most retirees, Social Security is the foundation of that paycheck. Another option is annuities, which can help replace the pensions many workers no longer have. “A lot of people approaching retirement don’t have pensions anymore, and so if they want the peace of mind of some kind of lifetime guaranteed income…then that’s the way they make that happen.”

RETIREMENT IS EMOTIONAL – AND THAT MATTERS

At the heart of “Retirement Illustrated,” Vernon says, is having conversations – especially the hard ones. Vernon says the guide intentionally models healthy discussions between spouses, adult children and loved ones.

“We model that kind of healthy behavior,” says Vernon. “Often, breaking the ice is the hardest thing. Having that opening conversation with either your spouse or an adult child…it gets easier once you understand those conversations.”

STEVE VERNON’S TOP THREE RETIREMENT MOVES

After walking readers through some of retirement’s biggest financial and emotional decisions, Vernon boils it all down to a few practical moves people can take right away:

• Don’t wait: If retirement is five to ten years away, Vernon says now is the time to get serious. “It’s important to realize your retirement could last 20 to 30 years, and that’s another realization…you need to make your money last for that period of time. But also, what do you do with all this time? Start the bucket list.”
• Pick your retirement age: Think about your ideal retirement age, then crunch the numbers with a financial professional. “If you realize you can’t retire full-time at 65 and have your current standard of living, then you’re going to have to either work longer or reduce your spending,” he shares. “These are powerful and important decisions.”
• Decide where you’ll live: “What I’ve found is – and the research I’ve seen at Stanford shows – it can have a powerful impact on your quality of life and your financial life, but yet it’s the most overlooked decision.”

As “Retirement Illustrated” continues to roll out new chapters, Vernon hopes the project will continue to help people see retirement more clearly before they make big decisions.

“People approaching retirement and retirees face a bewildering set of decisions, and I’ve seen people struggle with this, get overwhelmed and intimidated,” he says. “These decisions are more complex than when they were just saving for retirement, and many times you don’t get any do-overs.”

RELATED CONTENT:

• When it comes to retirement, Americans are making tough trade-offs. New research shows retirees and near-retirees are more likely to skip medical care or home repairs than reduce financial support for family. Learn more here.
• Most pre-retirees and retirees say charitable giving is a priority – but with rising longevity and concerns about outliving savings, knowing what you can truly afford isn’t always easy. Here’s how to leave a legacy without sacrificing security.
• 80% of Americans worry their savings won’t last them through retirement. Annuities can help cover essential expenses and give you the freedom to enjoy life’s next chapter, on your terms.