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.
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