The path to and through retirement is a journey that takes time. A guide like this can offer structure and help people stay on track.
The first stage, pre-retirement, begins one to two years before retirement. It’s when people begin to plan more aggressively. They may also start thinking about end-of-life issues and power of attorney arrangements.
Pre-retirement
During the pre-retirement phase, people focus on preparing financially for retirement. They ensure their savings are sufficient to fund a desired lifestyle, and they begin considering the emotional aspects of this significant life transition.
This is a time of excitement and hope. As the retirement date approaches, many people feel energized and eager to enjoy a new chapter of their lives.
Retirees must prepare emotionally for this significant change by testing out their planned lifestyle on a small scale. Some choose to work part-time or in some other capacity, such as consulting. This can help alleviate any concerns about financial security during retirement. It also gives people a chance to gain confidence in their planning. Others may experience a period of disenchantment during this stage.
The Honeymoon Period
This stage, which lasts from retirement day to a year or more, is all about enjoying everything new about life without having to worry about work. It’s a time to travel, indulge in hobbies, and visit loved ones.
After the honeymoon, reality sets in, and retirees can become disenchanted with their new lifestyle. They might find themselves bored or restless in their daily routines and may struggle with a sense of purpose without the structure of a full-time job or responsibility for children.
This is a crucial stage to work through, but it can also be an excellent opportunity to re-invent oneself and reassess priorities. This could involve returning to the workforce part-time, looking after grandchildren, or pursuing another passion project. It’s also a great time to build a solid social network to help prevent loneliness.
Early Retirement
In this stage, retirees are adjusting to their new lifestyle. They spend time with family, exploring hobbies, and even working if they choose to do so.
Retirement can feel like a dream for those who have worked hard to get here. The initial period after retiring, the honeymoon phase, can last anywhere from weeks to a year and is filled with excitement and new possibilities.
During this stage, retirees should spend time reorganizing their finances and budget. It may involve downsizing or selling off items they no longer need. They should also determine their income sources and review insurance options for the future. The more they plan, the smoother their transition into retirement will be. Early retirement is an ambitious financial goal, but it can be done with proper preparation.
Mid-Retirement
At this point, many people begin to discover their new purpose and meaning in retirement. This could include volunteerism, pursuing hobbies, and even traveling to new places. This is also when retirees must balance their desire to enjoy their free time with the need to budget and avoid depleting their savings.
If not careful, this phase can lead to disenchantment. The emptiness can overwhelm retirees who suddenly lack the structure to their day. Watching TV isn’t enough to fill the void; it can quickly become a vicious cycle. The best way to avoid this is to think about a purpose for yourself in retirement before you start. The earlier this is done, the better.
Late Retirement
During the final retirement stage, individuals seek stability. With financial resources secure, retirees tend to focus on recreation and family. They may also begin to explore new hobbies and volunteer.
This phase can lead to disenchantment, like the feeling that newlyweds experience once the honeymoon ends. Retirees must focus on developing passions and interests that can reorient their sense of purpose rather than wishing things were how they were before retirement.
To combat the potential of disenchantment, it is recommended that retirees spend time with family and friends, explore a hobby or activity that they enjoy, and take part in lifelong learning. This will help them feel energized and happy in their new role. This is also an excellent time to consider consultancy or part-time work.