As retirement approaches, many people can have conflicting feelings. The opportunity to stop working and spend more time doing the things you enjoy and seeing more of the people you love is an exciting prospect. However, having worked for, perhaps, 40 or 50 years, the prospect of such a dramatic change can be deeply unsettling. If you also consider the financial changes frequently required when you move from a salary to a pension, then it’s easy to understand why research by the charity Age UK has found that around half of adults aged sixty-five and over have experienced mental health problems, such as depression and anxiety, with retirement playing a key role.
The good thing about retirement is that people know when it is likely to happen. Whilst retirement ages vary from country by country across Europe, as you reach your mid-to-late fifties it is a good idea to spend some time considering how you will navigate this life changing and momentous occasion when it eventually arrives.
With that in mind, we want to share with you some ideas and prompts to help you plan the fantastic next chapter in your life, as it’s proven that those who have a plan have a more enjoyable and longer retirement.
Firstly, focus on you
Whether you consider it, or not, you are a creature of habit. You will have routines and structure in your life which you have actively created or have formed during your working life. However, a lot of those routines and the things you currently ‘always do’ could change when you retire, because you no longer go to work each day, and have more time on your hands. Change can be difficult to navigate at the best of times, let alone when it relates to the way you have been doing the same things for decades, so take some time to look at how you will approach retirement.
Work out what is important to you now and consider how you can still achieve that when you retire. Perhaps you find the social aspect of work important? If you do, look at how you can fulfil that need by joining a club or taking up a hobby. It could be that you like the sense of usefulness that work gives you. If so, consider whether a voluntary role or charity work could give you the same satisfaction.
Having worked for much of your life, it’s important to consider what life in retirement will look like, the opportunities it could provide, and the wishes and achievements you would like to fulfil, so sit down and think about them. It’s also wise to take some time to consider what could prevent you from achieving these things though, so that you can work out ways to overcome these hurdles ahead of time.
By thinking about and planning for retirement, it’s possible to make a smooth transition from being a full time worker to a full time retiree, whilst limiting the impact of such a substantial change to your everyday life.
Secondly, focus on your finances
It’s unlikely that your finances will stay the same when you retire, and in most instances, this will mean having less money to live on, whilst more time available in which to spend it.
So, plan for retirement by reviewing your finances now. Look at where your retirement income will come from, such as a private pension, state pension, savings, or some other retirement fund, and preparing a budget so you understand ahead of time the retirement lifestyle you will be able to afford. Depending on your financial circumstances, you might consider speaking with a financial adviser who will be able to help you understand the options available to you with some retirement products and help ensure your retirement income is not unnecessarily impacted by tax rules and regulations that you might encounter.
Taking time to review and plan your finances ahead of retirement also allows you to identify things you could do now, whilst you still have a salary coming in, that could reduce the impact it would have when you have a lower retirement income in the future. This might include boosting savings, refinancing or clearing debt, bringing home improvements forwards, or buying a new car which will last until you eventually stop driving. Also, in the context of life as a retiree, consider whether there are lifestyle changes you could make now that will benefit you when retirement comes. For example, many people downsize their property once they retire, but doing it ahead of retirement could free up capital to boost your retirement fund and reduce outgoings ahead of when retirement comes.
People hope to have long and enjoyable retirements, and spending time planning financially for retirement can make an enormous difference when the time comes.
Focus on wellbeing
Working life can be full on, with spare time at a real premium. However, the need to be at work at a certain time, on certain days gives structure to our lives. To suddenly be presented with a diary which is ostensibly empty, can be terrifying for some people. Boredom, inactivity, and loneliness can easily creep in and the mere fact that things are different, and your time is no longer mapped out around your work commitments, can be detrimental to both your physical and mental wellbeing.
If you are in a relationship, whilst loneliness may not be such an issue, it’s possible that the dynamic of it could change when you retire. You’ll probably be used to only seeing each other when you aren’t at work, with any extended periods together limited to holidays and weekends. To suddenly find you are with your spouse, or partner, 24/7 can be a huge change for some couples and can cause problems as they yearn for some of the “time alone” they had before. Again, this can be detrimental to your mental wellbeing.
So, as you approach retirement, take some time to focus on how you will look after your physical and mental wellbeing when you stop working. If there are already things you do whilst working, can you continue doing them in retirement? Are there hobbies or past times you would like to try? What are your spouse or partner’s expectations when you retire? Do you have shared interests you can explore together, or separate interests you can do apart?
Take time to think about what makes you happy, what will enhance your life, what keeps you healthy and what you need to do to fill any voids that stopping work might create.
Talk to people and get their thoughts and advice, share your worries and desires with those you care about, and, most importantly, spend a little time planning and preparing for what should be a hugely happy, enjoyable next stage of your life. After all, you’ll have worked hard enough to get there.
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