Retirement planning may not be rocket science, but that doesn’t mean you can ignore the laws of physics.
Think back to your high school physics class and you might recall the Second Law of Thermodynamics: left alone, systems tend toward disorder — called entropy. Like a garden, chaos takes over when things are left unmanaged.
Retirement, experts suggest, isn’t all that different.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
A Schroders retirement study found only 4% of retirees said they were “living the dream,” while 15% reported they were struggling. Meanwhile, 63% wished they had done more planning prior to retiring.
If the first law of retirement is to accumulate enough wealth to live off of, the second is to sustain that life through structure. Call it the Second Law of Retirement: left unmanaged, your time, money and energy will drift toward disorder.
Knowing what you want from retirement is far different than building the systems to get there. As wellness author James Clear wrote, “You do not rise to the level of your goals. You fall to the level of your systems.”
Patrick Huey, owner and principal advisor of Victory Independent Planning, puts it more bluntly: “If you don’t drive the agenda, time, money and energy will slip away on someone else’s terms.”
The Second Law and time drift, or “the blank slate problem”
Most people associate retirement with “freedom”, but treating every day like a blank slate has its drawbacks.
Huey calls this the “endless Saturday” trap, where retirees find themselves sleeping late, watching too much TV or agreeing to unwanted obligations like babysitting out of guilt or aimlessness. Others go in the opposite direction, cramming their schedules with travel, hobbies and big-ticket items, burning themselves out by trying to “do it all.”
“Neither approach is truly satisfying if it’s not intentional,” he says.
Ironically, the solution might be what most of us take for granted during our working years: routine. Research shows that routines improve mood and reduce stress. Anticipation itself has measurable benefits to mental well-being. People who had something to look forward to were happier and more resilient.
It’s easy to underestimate how much time needs to be filled. If you remove a 48-hour workweek, that’s roughly 40% of your waking time. Without something to fill that gap, even freedom can feel like a burden.
To help with the transition, Marianela Collado, senior wealth advisor at Tobias Financial Advisors, suggests easing into retirement with a phased schedule. “Cut back gradually — from six days a week to four, then to three,” she says. “It gives you a preview of what life might look like when you’re no longer going into the office.”
A sabbatical or “mini-retirement” can also serve as a helpful test run if that’s an option.
Routine might also be key to a creative and productive second act. Many famously creative people thrive on daily routines. As internationally bestselling author Haruki Murakami, who follows the same schedule each day when working on a novel, explained in an interview: “The repetition itself becomes the important thing; it’s a form of mesmerism. I mesmerize myself to reach a deeper state of mind.”
So, if routine fuels greatness, why not use it to power your freedom years?
Financial drift: too much or too little
Retirement spending often follows a U-shape — high in the early years, tapering in the middle and sometimes rising again due to health care. But disorder sneaks in at any point.
“Two common traps I help clients avoid,” says Melissa Murphy Pavone, founder of Mindful Financial Partners, “are overspending early, especially on travel or big projects, and becoming so fearful of running out that they don’t enjoy retirement at all.”
She says cash flow planning and scenario modeling help retirees find the sweet spot. “It’s not about deprivation or indulgence. It’s about balance.”
Unfortunately, many retirees struggle to find that financial equilibrium. The National Council on Aging found nearly half of adults age 60 and older have incomes below the Elder Index, meaning they don’t earn enough to meet basic living needs.
A common disruptor to financial order is actually generosity. A recent report by Savings.com found that roughly 50% of parents with adult children provide regular financial support.
Murphy Pavone recommends putting “guardrails” in place for giving. “That might mean a line item in the budget or making clear whether support is a one-time gift or ongoing help.”
Huey agrees that it’s okay to help if you can, but not at the expense of your own security. “Your stability is the safety net – the greatest act of generosity is not becoming a future financial burden.”
At the other extreme, fear can lead to under-spending. A study from the Center for Retirement Research found that half of retirees are afraid to use their savings. This mindset often leads to unlived life experiences and un-created memories.
Jessica McNamee, founder of Sirius Wealth Strategies, offers this reminder: “Your most important retirement asset isn’t on your balance sheet. It’s actually your willingness to remain flexible during your retirement years.”
Some years, that may mean tightening the belt during a market downturn. In others, it might mean spending more freely when the portfolio is doing well.
Energy drift: losing purpose, movement and meaning
At age 90, film composer John Williams announced his retirement, only to change his mind six months later. “You can’t retire from music,” he said. “It’s like breathing.”
That tension — between slowing down and staying connected to purpose — is at the heart of the energy challenge in retirement.
Collado recalls a client who sold his business for $15 million, only to fall into depression. “He didn’t plan for the loss of identity that came with no longer running what he called ‘his baby,’” she says.
That’s why McNamee urges people to consider what their job once gave them beyond the paycheck. “Think about replacing the benefits that are often overlooked or taken for granted: social contact, a sense of purpose and physical activity.”
Energy is the fuel that drives quality of life in retirement. Research consistently shows that retirees thrive when they stay physically active, socially connected and engaged in something meaningful.
“What’s going to get you out of bed in the morning?” Murphy Pavone often asks. “Whether it’s volunteering, mentoring, traveling or learning something new, identify activities that bring purpose and connection.”
The answer will be different for everyone. Therefore, investing your time, money and energy in retirement isn’t only a matter of rules. It also requires a bit of creative expression. Or as investor Howard Marks once said, “Investing is more art than science.”