Imagine you’ve pulled into the company parking lot for the last time, attended your last strategy meeting, and eaten your last department lunch. You have finally retired, and you have got a whole new life ahead of you. Whether retirement is a few years away still, or right around the corner, it can be daunting to face your post-work life – it is a major life change after all.
If you’re worried about feeling a little lost right after retirement, you’re not alone. Work is a big part of everyone’s life. It can give you a purpose, surround you with people, and provide structure to your day. To make a successful transition to retirement, you will have to replace all the things that a job provides beyond just financial stability.
You will need to start thinking about how to meet new people, so you are not isolated after you stop working. You will also have the space to channel the passion you had for your work into new projects and activities.
Retirement is also a major financial transition. You will go from the consistency of a regular paycheck twice a month to a self-funded combination of Social Security, retirement funds and savings that you’ve accumulated over the course of your working life. This is the time where your retirement approach pivots from thinking about building your wealth to making it last for the remainder of your life, and maybe even into the next generation.
Making the switch from work to retirement is not always easy, and you may have good days and bad ones. Still, you can improve your chances of success by focusing on these four elements of a successful transition.
You’re not on the clock anymore. You can take a nap if you feel like it or linger over the crossword. But you can also look to make the most of your time, too. If you want to enjoy a productive, satisfying retirement, you can plan for how to fill your newfound free time.
Think about the people and activities that have always made you the happiest and develop a strategy for bringing them into your retirement life. Be specific about who you want to spend time with and how you would like to structure your days.
A thriving social life is important too. Throughout work, you interact with coworkers, customers, and vendors all day long. Consider how you will keep connections with others intact once you leave the workplace. Regular activities you enjoy, like playing pickleball, and seeing movies, can be even more rewarding if you enjoy them with friends and family. You can meet people through volunteering, taking classes, or joining clubs.
Many new retirees say they feel adrift at first because all the structures that shaped their lives have ended. But building a regular routine, for when you get up, where you go, how you meet and interact with other people, and how you incorporate hobbies and activities into your schedule can bring joy and satisfaction. You may have a lot more extra time on your hands. If you do, you deserve to use it in all the ways that make you happy.
Before you retire, other people set goals for you from sales quotas to individual project deadlines. But now you are not working, you have the freedom to formulate your own objectives. You can think about what you really want to accomplish in the next phase of your life.
It’s helpful to begin this evaluation before you retire. Take the time to consider the goals you have for your later years. For example, perhaps you would like to learn a new skill like woodworking or a second language. Other goals can include travel or spending more time with your kids and grandkids. Now is the time to make a concrete plan for realizing these goals.
You may also have long-term goals as well. Retirement can be a good time to start thinking about your legacy and how you will transfer your wealth to loved ones or favorite charities.
Retirement shouldn’t mean you should stop learning, growing, and improving your life and those of others around you. Setting goals can add valuable purpose and direction to your days while keeping you motivated and active.
As you get older, the more conscious you have to be about your health. Planning ahead can ensure you have the care and support you need at every phase of your post-retirement life.
For instance, consider whether you may require assisted living later life or even long-term medical care. Talk to your financial professional about how you can plan ahead for these costs through various financial solutions. You may even wish to visit facilities in your area in advance, so you’ll know which ones best fit your personality and lifestyle.
You should also think about what you’re going to do to stay healthy in retirement. Could you follow a healthier diet or follow an exercise regimen, even if it is just a daily walk to the park? Studies show older people who exercise even a modest amount can increase their longevity and regular physical activity can strengthen bones, boost energy levels and immunity, and improve mental health.
Organizations like the AARP have several free exercise programs that can help you get started.
Retirement requires a change in your financial approach. Rather than relying on regular deposits from a paycheck, you’ll need to develop a strategy for turning the assets you have accumulated over a lifetime into an income stream that supports your lifestyle.
A financial professional can help you by developing a holistic view of all your post-retirement sources of income, from Social Security to withdrawals from your defined contribution retirement plan and everything in between. Once you know how much income you can rely on, your financial professional can help you develop a realistic budget to keep you on track now and ensure you have the resources needed in later years.
An experienced financial professional can design a comprehensive withdrawal strategy1. They can advise you on when to start taking Social Security, for instance, and whether you should take your pension as a lump sum or annuity benefit. Your financial professional can also help you determine which retirement accounts to withdraw from and in what order to minimize taxes2 and maximize regular income.
Finally, like all aspects of your post-retirement life, your financial plan will change3 as you go forward. A financial professional will also be there to help you adjust when the unexpected occurs. From rising inflation to managing properties, your financial professional can provide expert analysis along the way
You may feel a little nervous about your finances when the paychecks stop, but your financial professionals there to help you make sure your assets work as hard as they can for you throughout your retirement years.
Retirement is a significant life-changing event. You will go through an adjustment period before you get really comfortable with retirement. Many people have a tough time adjusting to the next phase of their life, but planning ahead can ease the transition, and ensure that when you do pull out of the parking lot for the last time, you’re feeling confident and ready for the next chapter. Your financial professional can help you visualize your ideal retirement lifestyle and start taking the steps to make your dreams a reality.
1 https://www.newyorklife.com/articles/drawing-money-from-retirement-accounts
2 https://www.newyorklife.com/articles/tax-considerations-in-retirement
3 https://www.newyorklife.com/articles/5-retirement-income-planning-tips
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
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