Are you (emotionally) prepared for retirement?

Written on the 24 March 2023 by Parkside InvestorPlus

I’ve written extensively about the need to be financially prepared for your retirement.

And while many clients are indeed financially prepared for retirement, they are however not emotionally prepared.

What do I mean by ‘emotionally prepared’?

Retirement is a major life change, that not everyone is prepared for. 

For many, retirement holds dreamy images in their minds, however, when they enter into this next phase of their lives, the reality kicks in which does not match their dream ideal.

In an odd way, many retirees feel their ‘retirement phase’ will look after them without them having to do anything.

Many retirees only prepare for retirement financially and are not aware of the emotional impact retirement can have on your life.

Every life change, whether it is positive or negative, comes with emotional discomfort.

It can produce negative mental states that you’re maybe not aware of beforehand and come as an unsuspected surprise. 

Here some suggestions on how to emotionally prepare yourself for retirement.

Prepare in advance

While this may sound overly obvious, it’s surprising how many pre-retirees we see who are not emotionally prepared in advance for their retirement.

They may have hit the right number in their superannuation account which has now prompted them to go for retirement.

However, a financial number will not guarantee you a long and fruitful retirement.

Preparing for a major life change for most people can’t be done within a day, week, or month.

So, it’s best to start preparing yourself mentally 1-5 years before retirement. 

This timeframe is different per person and circumstance but be aware that it takes more time than you think to get used to the idea of retirement.

You really need to work out what retirement life looks like for you.

What you want to do in retired life and how you can prepare together with your spouse and family.

So, preparing well in advance will make your transition into retirement less stressful. 

You may even decide to test drive your retirement.

Visualise your retirement

It’s surprising how many people are so focused on the financial part of their retirement, without thinking about what to do with their time once they retire.

They are not mentally prepared for retirement and can fall prey to loneliness, depression, or waste their days with unfulfilling activities.

Or be occupied by other things that keep them from following their dreams. 

Statistically, the chances of getting depression after retiring increase by about 40%.

And the reason why most retirees suffer from depression in retirement is because they struggle with the transition from working life to a life filled with leisure which is more difficult than anticipated. 

Actively talk to your spouse and family about retirement

The biggest mistake for couples is not communicating properly what they want out of retirement.

Many couples assume they share the same vision about life in retirement without talking about it.

And this can lead to disappointment, conflicts, and friction and sometimes even lead to divorce because you’re not on the same page anymore.

It’s really important to discuss your hopes, dreams, and the plans you have for retirement with each other.

Maybe your partner doesn’t want to retire at the same time because she/ he loves their job.

Or perhaps they want to move closer to your grandchildren, and you have another plan in mind.

You need to keep the wants and needs of each other front and foremost with each other.

Another overlooked element in retirement is how you will both handle matters at home.

For example, you need to talk about how to handle alone time, together time, and household activities.

Remember, you working life was consumed with deadlines, activities, urgent matters, social interactions and a myriad of other time fillers.

If you’re the only one retiring, then maybe your spouse needs to get used to the fact you’re home more often.

And it may feel like you’re invading on her/ his space.

Or they expect you to do more household activities than you anticipated. 

The overall point is that being mentally and emotionally prepared for your retirement cannot be overstated.

At Parkside InvestorPlus we view retirement as a very holistic phase, meaning it’s not just about money – rather, money, health, and emotional wellbeing, or to be more precise, emotional readiness for retirement.