Getting emotionally ready to retire
You've probably worked most of your adult life. Making the switch can be a big adjustment. It's normal to be excited yet have some doubts. Are you okay with not having somewhere to go every day? Do you have other things you want to do? Money is only part of the picture. Make sure you've thought through how you actually feel about retiring. Here are five actions you can take to emotionally prepare for retirement:
Think about how you want to spend your time
Once in retirement, you’ll likely have more free time available than you’ve had in decades. For some, that may feel liberating, but many new retirees struggle to find a sense of purpose in their daily lives.
To get a better sense of how your time might be spent, consider outlining your schedule for your first week, first month and even your first year in retirement. Are there large gaps of time in your schedule? If so, how might you fill it in ways that give you meaning and a sense of purpose? While everyone’s ideal retirement is different, common things to do in retirement include:
- Spending quality time with family and friends
- Working
- Volunteering
- Traveling
- Taking steps to improve health/fitness
- Pursuing hobbies and interests
- Learning new skills
Identifying fulfilling ways to spend your time can better prepare you for your transition and help reduce the feelings of disorientation and uncertainty common with new retirees.
Share your vision for retirement with your spouse and loved ones
Getting alignment with your spouse or partner is critical, so talk with each other about your visions for retirement. Do you want to retire at the same time? Do you want to spend it the same way? Be sure to discuss what aspects of your retirement vision will be shared and what each of you will do individually.
You may also want to discuss your retirement plans with close family members or friends, especially those you may be relying on and those who may be relying on you. For example, do they expect you to offer childcare or other favors after you're no longer working full time? Are you expecting their help as you age? If necessary, decide on ground rules and boundaries ahead of time.
By talking now, you can avoid surprises or contention in retirement.
Test-drive retirement before you get there
As you think of ways to spend your time ahead of retirement, consider test-driving those activities now to see how they suit you. Doing so can help you fine-tune your plans before retirement instead of in retirement. It can also help you build social networks and inroads into the activities you want to pursue, which may make for a smoother transition. And, if you're thinking of making big changes in retirement, like moving to a new state, test-driving is especially important so that you don't build your plans around something or make large financial commitments only to find out it's not for you.
Consider stair-stepping into retirement
The traditional path to retirement used to be working a 30- to 40-year career while saving enough to stop working altogether at retirement. But more and more Americans are gradually stepping into full retirement. This could include first moving to part-time employment, taking a lower-stress position or pursuing a dream job, and it may include multiple moves over time. Stair-stepping into retirement can provide financial flexibility and make the transition feel less stressful.
Develop a financial strategy that supports your vision
Preparing for the nonfinancial and financial aspects of retirement go hand in hand. The more purposeful you are around the nonfinancial aspects, the less likely you'll be dissatisfied and want to adjust your plans in retirement, which could have financial implications. That's why taking time now to think through the nonfinancial aspects helps prepare you both emotionally and financially. By understanding your retirement vision, we can work with you to develop a financial strategy to help make it a reality.
How we can help
It's okay to be concerned about making the right choices about retirement – these are big decisions. Working with your financial advisor can help address some of these worries and make you feel more confident about your path forward. Contact a financial advisor today.