Many of us spend our working years planning for the ideal retirement. We look forward to being on our own schedule and being able to relax and pursue the all things we didn’t have time for while we were working. Retirement is a major life event, and everyone’s experience is different. Some people sail into retirement and never look back, while others have a more difficult adjustment. No matter how well you have planned for retirement, there may be some unexpected surprises. Here are five things you should know about what retirement is really like:
1. It’s a Transition
While the process of adjusting to retirement is unique for each individual, most people experience retirement in phases.
The Honeymoon or Vacation Phase
This is the initial period of enjoying the freedom of retirement. Some people can stay in this phase for a long time, while others discover quickly that they feel bored.
Feeling Lost
This is the period of disenchantment felt after the honeymoon ends. You may start to feel the loss of routine and sense of purpose that work provided.
Reorientation
This is the period of trial and error where you are experimenting with new things to find what gives you fulfillment.
Stability and Contentment
In this phase you find a sense of satisfaction and accomplishment with your new lifestyle.
Everyone’s timeline for passing through the phases is different. Be patient and stay open to the process knowing that it may take longer than you expected.
2. A Different Financial Focus
Retirement requires a different financial mindset. You are changing your focus from earning money and building savings to spending those hard earned dollars. Many retirees struggle with this change and have concerns about making their money last throughout their retirement years.
Faced with this new financial landscape many seniors find working with a professional such as a financial planner or accountant to be beneficial. These experts can offer guidance and help you avoid costly mistakes. This includes decisions about when to take Social Security, when and how to take the required minimum distributions from your retirement accounts, and strategies to minimize the tax implications.
Concerns about money can cast a shadow over retirement for many retirees. For this reason, many retirees make the decision to take on another job after retirement, often in a part time capacity. Continuing to work is one way to help your savings last. Be aware, if you continue to work while collecting social security and you are not yet full retirement age, there are special earnings rules for how much income you can earn and still receive your full social security benefits.
3. Don’t Underestimate the Emotional and Social Impact
While most people are aware of the financial impact of retiring, they may not be prepared for the emotional and social impact. Many people report being happier in retirement. They have more time for family, friends, travel, and hobbies. Some people, however, struggle with stress, anxiety and even depression after retirement. They miss the routine of going to work every day and feel set adrift. They may feel they have lost their sense of identity and purpose. Some retirees are surprised to find how much they miss their daily interactions with co-workers. They may struggle with loneliness or feeling isolated. This can have an impact on mental health.
Understanding these changes and preparing in advance can help offset these effects. Try to strengthen your social network before you retire. Look for opportunities to meet new people.
- Join community organizations, church groups or a book club.
- If you like to travel, look for group tours where you can travel with other people.
- Find ways to volunteer or be a mentor. Focusing on the needs of others can be very fulfilling.
- Continue your education by taking a class to improve your skills or learn something new like wildlife photography or writing poetry.
- Transition to part-time employment after retirement. Many people find this not only helps financially but also helps them stay socially engaged. This can help you ease into retirement more gradually.
4. The Importance of Staying Healthy
Many seniors find that retirement gives them the opportunity to prioritize themselves and their health. This is vitally important since good health can mean maintaining your independence for years to come. As you age, you are more likely to be impacted by chronic health conditions which can significantly diminish your quality of life and increase your healthcare costs which can jeopardize financial stability.
Taking care of your health means making sure you have the right health insurance for your needs. Retirement may be the first time you have not been covered by your employer’s health insurance. Depending on your age and circumstances, you might be eligible to enroll in Medicare for the first time. If like most people, you find your Medicare coverage options to be confusing, a Medicare agent or broker can help you find the plan that is right for you.
Know what your health insurance covers and take advantage of your benefits. Keep your appointments for annual checkups and screenings. Your coverage may offer dental and vision care, gym benefits, nutritional assistance, and preventive services such as vaccines and fall prevention. Being proactive about your mental and physical health is the best way to ensure a long and healthy retirement.
5. Embracing the Change
Retirement represents an opportunity to redefine yourself and set new goals. Like any phase of life, you should expect retirement to have its ups and downs, its joys and challenges. But if you approach it with a positive attitude and a mindset that embraces change you will find these years can be very satisfying and fulfilling.
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