2021 the psychology of retiring

ROAD TO RETIREMENT

PLANNING YOUR RETIREMENT FROM IN DIANA UNIVERSITY

The Psychology of Retiring Sue Dukeman

Sr. Retirement Specialist, IU Human Resources

Jim Sherman

Professor Emeritus, IU Psychological and Brain Sciences

September 10, 2021

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SECTION 1

Psychology ofRetiring

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What keeps people from retiring?

• Really enjoy work

• Financial issues—not enough retirement funds to liveon; fear of outliving retirement funds

• Concerns of boredom, unhappiness, wither away

• Painful and unhappy tasks—e.g., health care

• Anxiety about psychological adjustments—loss ofcareer identity; loss of friends and support networkfrom work

• For some, it is likely that thepsychological issues outweighthe financial issues

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Motivations to Retire

Tired of working―burnt out, no longer enjoy work

Field and technology have changed―may have passed you by

Can’t do the work any longer due to: • health issues• psychological issues• family obligations

Prefer to do other things: • travel• write the great novel• spoil the grandkids

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Psychology & Behavioral Economics

Status quo bias—inertia, we get stuck where we are (poker hands; stocks).

Loss aversion—this is a big reason for status quo bias. Losses weigh more heavily than gains (trading pens for mugs; buying and selling prices). Regret—actions bring more regret than inactions (money lost by switching stocks vs. staying with the same stock). All the above suggest that, in general people will be more likely to make an error by staying at their job too long rather than retiring too early.

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Solutions to the Retirement Dilemma

Psychological issues and concerns: • Go part-time―related job or new employer

• Volunteer work—meaningful and providessocial contacts

• Travel more

• Focus on “hobby”/passions

• Look at what your retirement city has to offer

• Talk to friends and colleagues who have retired

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Financial issues and concerns: Solutions to the Retirement Dilemma

• Meet with Fidelity Retirement Planners (virtualor telephone)

Painful tasks (e.g. Medicare): • Speak to IU Human Resources or local Social

Security Office

For Faculty: • Possibility of phased retirement through IU

Phased Retirement Program

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IU Phased Retirement Program

Voluntary opportunity to “phase” into retirement while you:

• Withdraw from retirement funds while stillworking (IU Retirement Plan, TDA and anyfunds held at Fidelity in a 457(b))

• Continue to work while taking partial leavewithout pay

• Continue IU medical, dental, and otherbenefits

• Reduce workload by 20‒50% for 12‒36 months

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SECTION 2

Speaker Stories

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Sherry Queener Professor Emeritus, Pharmacology & Toxicology

IU School of Medicine

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Laurel Cornell Professor Emeritus, Sociology

Indiana University Bloomington

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Jan C. Halperin, CFRE Retired Vice Chancellor for University Advancement

Indiana University Kokomo

Jan C. Halperin, CFRE

There is only • Background

• What are my fears that will happen if I retire? one road, but • What would I like to do when I retire? How will I keep busy?

there are • What brings warmth to my heart?

many paths. • Where will we live?

• Final Steps before you retire

• Why did I choose the title of my talk?

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I■ ROAD TO ~ ·~RETIREMENT ---~ PLANNING YOUR RETIREMENT • 1 "U FROM INDIANA UNIVERSITY

IU Human Resources Presenters Jim Sherman

Professor Emeritus, IU Psychological and Brain Sciences sherman@iu.edu

Sue Dukeman Sr. Retirement Specialist, IU Human Resources

askhr@iu.edu | hr.iu.edu shdukema@iu.edu 812-856-1234

I■ ROAD TO ~ ·~RETIREMENT ---~ PLANNING YOUR RETIREMENT • 1 "U FROM INDIANA UNIVERSITY

Thank You!

Questions?