EP 200: The Overlooked Aspects Most Retirement Plans Miss With Christine Benz

by Peter Lazaroff | Apr 16, 2025 | Podcast

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Retirement isn’t just about saving enough money—it’s about making the right decisions once you get there. And yet, the transition from saving to spending, managing investments in retirement, and maintaining purpose beyond work are all things that many people struggle with.

Today, I’m joined by Christine Benz, Morningstar’s Director of Personal Finance and author of How to Retire, a book that distills 20 key lessons from top retirement experts. Christine has spent years researching and writing about the nuances of retirement planning, and in this conversation, we’re diving into the often-overlooked aspects that can make or break a successful retirement.

We discuss why lifelong savers have trouble spending in retirement, how social connections impact long-term happiness, and the biggest debates in retirement planning today—including whether annuities are actually worth it.

And hey—if you don’t have time to sift through endless financial content every week, I’ve got you covered. I do the reading for you and share my top five must-read articles in a quick, easy-to-digest email. You can sign up for that newsletter here.

And now, let’s get to my conversation with Christine. Whether you’re planning for retirement or already retired, this episode will help you approach the next stage of life with more confidence and clarity.

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Christine’s New Book & Why She Wrote It (02:43)

Christine shares the backstory of How to Retire—a book structured around 20 expert interviews, each offering a unique lesson on retirement planning. Instead of positioning herself as the sole authority, Christine gathered insights from specialists across healthcare, estate planning, and financial management to create a comprehensive guide.

She discusses the challenges of writing the book, how the idea evolved over time, and why this format helped her tackle complex retirement topics.

Under-Discussed Factors in a Happy Retirement (04:57)

Many people focus on the financial side of retirement but overlook the emotional and social adjustments. Christine highlights two key areas that often get neglected:

Relationships – Research shows that social networks tend to shrink with age, not just due to loss but by personal choice. Retirees must be proactive in maintaining meaningful connections outside of work.
The Spending Shift – Lifelong savers often struggle with the transition to spending. Many retirees fixate on their portfolio’s peak value and resist withdrawing funds, even when they can afford to.

Overcoming the Fear of Spending in Retirement (08:19)

Christine introduces the concept of lifetime giving as a way to reframe retirement spending. She references Mike Piper’s book More Than Enough, which encourages retirees to consider gifting money to children or charities earlier in life rather than leaving a large estate behind.

Financial planners play a crucial role in helping retirees determine a sustainable withdrawal strategy—one that balances financial security with enjoying their wealth.

The Role of Relationships & Social Networks (11:03)

Retirement isn’t just about financial security; it’s also about maintaining a fulfilling life. Research suggests that men, in particular, struggle with social connections post-retirement, as many of their relationships stem from the workplace.

Christine emphasizes the importance of planting social seeds early, whether through volunteering, part-time work, or community activities, to ensure a strong support system later in life.

Biggest Disagreements Among Retirement Experts (13:47)

Christine outlines major areas of debate among financial professionals:

Annuities – Experts like Wade Pfau advocate for guaranteed income sources, while others, like Bill Bernstein, view them as costly and unnecessary.
Portfolio Structure – Some experts favor simple solutions, like laddered bond portfolios, while others promote bucket strategies.
Withdrawal Strategies – The safe withdrawal rate remains a hotly contested topic, with different approaches from advisors like David Blanchett and John Guyton.

These debates highlight the complexity of retirement planning and the need for a personalized approach.

Should You Work Longer or Retire Early? (17:37)

While working longer has financial and health benefits, Christine shares perspectives from both sides of the debate. Some retirees thrive in their post-career life, while others struggle with the loss of structure and purpose.

Ultimately, the decision should be based on individual circumstances—finding meaningful activities beyond work is key.

Christine’s Bucket Approach to Portfolio Withdrawals (23:14)

Christine walks through her bucket strategy, originally developed by Harold Evensky:

Bucket 1: 2 years of living expenses in cash
Bucket 2: 5–8 years in high-quality bonds
Bucket 3: The remainder in a diversified equity portfolio

This approach helps retirees manage sequence-of-returns risk, ensuring they don’t have to sell stocks at a loss during market downturns. She also explains how to replenish cash reserves strategically based on market performance.

What Was Missing from the Book? (28:56)

If Christine had more space, she would have added chapters on:

How to Find a Financial Advisor – Many DIY investors struggle to navigate the options for professional advice.
Widowhood & Financial Transitions – Losing a spouse is a financial and emotional turning point that many retirees aren’t prepared for.
The FIRE Movement – While the book focuses on traditional retirement, Christine acknowledges valuable lessons from the Financial Independence, Retire Early community.

The Future of Retirement Planning (32:16)

Christine predicts that the retirement landscape will continue to evolve:

Pensions are disappearing, making it more critical for individuals to build their own retirement savings.
Guaranteed income strategies—such as simple annuities—may become more widely accepted.
Reverse mortgages and other nontraditional retirement income sources could become more mainstream.

She also notes that financial advisors will likely play a bigger role in managing retirement complexity, especially as cognitive decline becomes a growing concern.

Resources:

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