Embracing retirement: emotional and financial considerations

As you approach retirement, it’s a significant milestone that can stir up a mix of emotions. Last week a client described facing their looming retirement like jumping of the edge of a cliff – frightening.

This transition often brings thoughts about mortality, concerns about losing purpose, and worries about the unknown future. In this blog post, let’s delve into the less-talked-about aspects of adapting to retirement.

Why does retirement seem daunting?

No matter what kind of retirement you’re envisioning, it comes with its own set of fears. Let’s take a closer look at a couple of them.

Financial security in retirement

One of the biggest worries during this transition is financial security. With New Zealanders living longer than expected, the fear of running out of money looms large. Proper financial planning is key, and that’s why we dedicate ample time to discuss your savings and spending plans.

Boredom and loss of identity

Many retirees face emotional and psychosocial challenges, with factors like a decrease in income contributing to feelings of depression. It’s a real concern, and having a plan can help.

Coping with Retirement: Tips and Recommendations

1. Set expectations and goals for retirement: Define your vision, plan your budget, and consider downsizing or relocating.
2. Maintain your identity and self-worth beyond work: Strike a balance between work and life, pursue hobbies, build relationships, and engage in community activities. For some people, a gradual transition to retirement with part time work helps ease them into a different lifestyle as well as helps with the financial implications of stopping work.
3. Establish a social network and support system: Combat social isolation by strengthening social connections and support systems. The earlier you do this, the better.
4. Monitor your mental and physical health: Sustain well-being through a routine that includes social connections, meaningful activities, physical exercise and regular check-ups. We all know this, but sometimes we aren’t so good at implementing!

Helping with the transition

Transitioning to retirement involves both emotional and financial considerations, and Castle Trust Financial Planning is here to help navigate the financial aspects. Making the most of the early retirement years when you have the health to do the things you want to do is really important. We can help build a plan about how much and when to spend your money so that it lasts. This gives you the confidence to spend your hard earned money at an appropriate rate, without constantly worrying whether there will be enough to get you through.

We see a lot of retired squirrels – having worked so hard to get to where they are, they find it hard to start spending. You can’t take it with you!