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Preparing for Retirement Mentally

When it comes to retirement, there’s two big challenges every person faces: a financial challenge and a mental challenge. In this article, we’re discussing how preparing for retirement mentally can help you transition to retirement easier.

How to Mentally Prepare for Retirement

A successful retirement is not merely measured in financial terms.

Even those who retire with small fortunes can face boredom or depression and the fear of drawing down their savings too fast.

How can new retirees try to calm these worries?

Two factors may help: a gradual retirement transition and some guidance from a financial professional.   

Preparing for Retirement Mentally – The Wrong Way

An abrupt break from the workplace may be unsettling.

As a hypothetical example, imagine a well-paid finance manager at an auto dealership whose personal identity is closely tied to his job. His best friends are all at the dealership.

He retires, and suddenly his friends and sense of purpose are absent. He finds that he has no compelling reason to leave the house, nothing to look forward to when he gets up in the morning.

Guess what? He hates being retired.

Related: The Top Questions for Retirement & How to Answer Them

Preparing for Retirement Mentally – The Better Way

On the other hand, if he prepares for retirement years in advance of his farewell party by exploring an encore career, engaging in varieties of self-employment, or volunteering, he can retire with something promising ahead of him.

If he broadens the scope of his social life, so that he can see friends and family regularly and interact with both older and younger people in different settings, his retirement may also become more enjoyable.

The interests and needs of a retiree can change with age or as he or she disengages from the working world. Retired households may need to adjust their lifestyles in response to this evolution.

Related: The Biggest Retirement Mistakes & How to Avoid Them

Retirement Anxiety Happens to Everyone

Practically all retirees have some financial anxiety. It relates to the fact of no longer earning a conventional paycheck.

You see it in couples who have $60,000 saved for retirement; you see it in couples who have $6 million saved for retirement.

Their retirement strategies are about to be tested, in real time. All that careful preparation is ready to come to fruition, but there are always unknowns. 

Some retirees are afraid to spend. They fear spending too much too soon. With help from a financial professional, they can create a strategy. 

Related: The Top Questions for Retirement & How to Answer Them

The Two Biggest Retirement Challenges

Retirement challenges people in two ways. The obvious challenge is financial; the less obvious challenge is mental. Both tests may be met with sufficient foresight and dedication.

There are so many personal factors when it comes to preparing for your retirement. My goal is to help navigate and provide all the education I can to help you make the right decision for your personal circumstances.

I know there’s a ton of information to take in, and I would love to help you sort it all out. What questions do you have for us here at WAG? 

We’re happy to work with you either in person, over the phone, or virtually, based on your preference. Give our office a call and we can schedule some time together.