If you’re wondering how to get the most out of your retirement, researchers from Fidelity International have outlined six important elements to a successful retirement, and the good news is none of them are based on your net worth. They are non-financial aspects of life and are known as the six Cs:
1 – Capability – which is the ability to act, react and adapt to optimise a good life trajectory. If we have the capability, then we have the potential to turn a negative emotional experience into a more positive one.
2 – Confidence – or the peace of mind and optimism to look forward towards a meaningful future, while still enjoying our present life. We may all wish we had a bit more confidence sometimes, but this is more about inner confidence and the belief that you’ve made the right choices. Be confident in your ability to live a good life – one that is meaningful to you – and your ability to create a meaningful future.
3 – Control– feeling like you’re the master of your destiny while avoiding the pain of uncertainty and failed expectations. Being forced into retirement through a job loss or other unforeseen external events can feel like things are outside of your control, but having a plan B already in place can help regain that sense of control. It’s not about controlling what happens to you, but controlling how you choose to respond that counts.
4 – Circumstance– is how we like to bundle health and wealth together. These may seem like critical components for enjoying a good life – and major health problems can sometimes seem to derail an otherwise well-planned retirement – but if the other Cs are all there, your overall experience will be better.
5 – Character– refers to self-esteem and a person’s resilience. These factors can help form a positive inner narrative which is important for a happy retirement. Having the character and discipline to have a plan B already in place, to have a flexible disposition and a positive outlook significantly helps build resilience to life’s unexpected turns.
6 – And finally, there is Connection – which refers to a sense of connection with family and the community. Quality relationships and being able to look beyond, or transcend, a purely inward focus are central pillars of a good life. It turns out thinking of others is also good for us too.
The six Cs are a useful reminder that retirement planning is about more than just getting your finances in order. Leading a meaningful and satisfying life is also about aligning with your values and focusing on the things that matter most to you.
If you’d like help planning for your future, get in touch with Darren and the team at Align Financial on (02) 9913 9995.
The six Cs article is based on research by Fidelity originally published at https://www.fidelity.com.au/insights/investment-articles/retirement-planning-its-not-all-about-the-money/