Will you be psychologically ready to retire?
If you’re approaching retirement, you probably have a checklist for your countdown to the big day.
- Do I have enough saved for a long, financially secure retirement? Check.
- Did I file the right paperwork at the office? Check.
- Is my professional exit strategy in place and ready? Check.
- Is my estate plan prepared so that I don’t have to worry about my legacy once I stop working? Check.
Seems like a good checklist. What is missing?
Am I ready for the psychological impact of retirement? Maybe…
This is a tough question for anyone to answer, as most of us have never retired before. Jobs or business interests may come and go. However, for most people, the working years are largely spent doing just that; working. Practicing retirement is something few of us ever get to do. Because of this, the changes in lifestyle and mental state that accompany suddenly ceasing to get up and go to work every day can be profound and unexpected.
What does retirement mean to me?
Some people approach retirement with a strong sense of engagement outside the office. They use it as an opportunity to express their values. Strong ties to nearby family groups, churches, or other community organizations make it readily apparent that the end of paid work isn’t the end of meaningful contributions. These are the kind of retirees who talk about being busier than ever once they retire. Of course, this has its challenges, too. Jumping straight from the “rat race” of paid employment into the management of a local non-profit or the board of a charitable endowment isn’t the most relaxing idea for most of us.
On the other hand, others retire and find themselves with only loose ties to the community and little structure outside of the workplace. This has the immediate appeal of days spent pursuing leisure and enjoying the fruits of a long career. Unfortunately, this also has the potential to bring feelings of loneliness and can be a bit of a letdown for those used to a high degree of influence in the working world.
Is retirement even right for me?
Either way, one thing is clear: more and more often pre-retirees are defying stereotypes and embarking upon a “second act” in their working lives.
Retiring from a job or business interest is still a common goal. However, it seems that increasing numbers of pre-retirees and recent retirees are open to the idea of continuing to work as a consultant for their old company or as a mentor for younger workers.
Others are using retirement as a chance to evaluate their lifestyle and find meaning in new business pursuits. Putting a lifetime of accumulated skill to work in new and exciting areas that mix business and leisure can be exciting and fulfilling, whether it’s opening a business or developing a piece of trophy real estate.
A decision worth talking about
In the end, there is no single approach to psychological retirement readiness. People today are living longer and healthier than ever, and as such, planning for financial success alone isn’t enough. The best financial plans for retirement also take into account the prospect of spending decades without being compelled to work. This is an exhilarating opportunity that should be discussed with a professional familiar with the challenges of planning for a “second act”.
Will you be psychologically ready to retire?
At Stewardship Trust Advisors, we’ve successfully led many clients through the process of retirement. Our knowledgable team is here to help you create a customized plan not just for your finances. We’ll also talk with you through the other factors of retirement – like being ready psychologically.
We can’t wait to work with you to create a plan that you can feel confident in. Ready to get started? Schedule a consultation today.
These weekly articles which are produced and distributed by Pilgrims Capital Advisors, Inc. contain information on topics about investing, tax planning, estate planning, asset allocation, insurance, and many other financial subjects. Please note that they are very general and must be applied to your circumstances through the services of a trained or licensed professional who specializes in these areas. If you have questions or needs related to the subject matter of this article please contact us by clicking on the link below and we will point you in the right direction.