19 April 2024

Are You Emotionally Ready for Retirement?

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It may be time, and you may be financially ready. But there's a key part of the retirement readiness equation that isn't captured by asset allocation models and withdrawal-rate simulations: Are you emotionally prepared for retirement?Sleeping late, puttering around in the garden, day drinking, and doing whatever moves you in the moment may be great for the first couple of weeks, months, or even years. But 20 years of that can get old, and there may come a day when you wake up in the morning and ask yourself, "Now what?" 

Exactly. Now what?  
Think about what you've been doing for the past 40-plus years. The activity that dominates our waking hours is work. Given the sheer amount of time we devote to our careers over our lifetimes, it's not hard to see why people derive a great deal of their self-worth from their jobs. There's a loss of responsibility, routine, and a place to be when you get up in the morning. And then there's the loss of relationships -- or at least the built-in, day-to-day interactions with colleagues that most of us take for granted until we're no longer roaming the halls and high-fiving each other in passing. 
 
How not to hate retirement  
Retirement is a major transition. And while it may be a happy one -- like other big life changes such as moving to a nicer home or welcoming a new addition to the family -- it's stressful. Here are four ways to ensure that you don't end up hating retirement.      
 
1. Plan how you're going to spend your time  
Weeks of binge-watching all those series that you've put off until retirement will fill several weeks. (By the way, I highly recommend all five seasons of The Wire.) And then there's all that travel you've planned to do -- seeing the sights, catching up with family, spending a few weeks at a dude ranch. But there's a lot of time to fill between trips and TV -- and only so many garages you can clean out and reorganize. Plus, let's face it, aging isn't exactly a cake walk, and eventually you may have physical maladies that limit what you can actually do. People who have interests or endeavors outside of their official jobs fare better psychologically in retirement. If there's something you've always enjoyed doing but never had enough time to do, that's great; you have an informal plan already. Or maybe there are new things you want to explore. Now's the time to take up a hobby or, if you have one already, to think about how you can develop that even more -- or even turn it into a small business -- when you have more time on your hands.  

 
2. Make new friends and keep the old ones  
Having a community is important, and often the people we know best -- those we make friends with and spend a lot of time with -- come from our job, where a social network is built in. When you retire you have to put in the extra effort to get together with your former colleagues. My dad, for example, has set up standing lunch dates with his longtime buddies from his working days. Then there are the friendships outside of your former work community -- pals from days of yore and new people you meet as you pursue your hobbies and interests. Here, too, consider how you're going to connect. You can also start researching social groups in your area and think about places you can plug in and help out when you retire. 
 
3. Find a purpose to fulfill your sense of contributing to society  
Another Merrill Lynch/Age Wave study on health and retirement found that one of the top determinants of a happier retirement is having a purpose. You have a career's worth of experience and talent to share. There are plenty of organizations and causes that could use your talents. Here's where volunteering comes in -- and it gives you a twofer: a community rallying around a common cause and a sense of purpose.      
 
4. Discuss with your spouse how you can avoid driving each other crazy  
When you retire, you and your spouse will go from being together maybe three hours a day (plus time spent running errands and doing other stuff on the weekends) to being together 24/7. A happy retirement co-existence will require some adjustments. You'll have to learn to be together all over again. That means finding the right balance between being together and being apart.  Address ways to set up your schedules for a harmonious co-existence before you start bickering about stupid stuff. Decide what projects or recreational activities you like to do together. Then discuss what you each like doing solo so that you respect the other person's sacred alone time.        
 
Make the most of the second half of your life  
Emotional preparedness is just as important to a happy retirement life as financial readiness. Plant the seeds now for your post-work life. Cultivate your community so you have people to talk to, places to go, and important work to do. That way, you won't be blindsided by feelings of isolation and emptiness and a lack of direction in retirement.  
     
The $60K Social Security bonus most retirees completely overlook  
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could ensure a boost in your retirement income of as much as $60,000. In fact, one MarketWatch reporter argues that if more Americans used them, the government would have to shell out an extra $10 billion… every year! And once you learn how to take advantage of these loopholes, you could retire confidently with the peace of mind we're all after.   
 

Click here to access the full article on The Motley Fool.

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