The Psychology of Age and Retirement
Saving enough for retirement is one thing – but honing one’s mindset to a new lifestyle is another. Twined deeply within these issues is your relationship to both money and age. In essence, money is only one part of the equation for a happy and productive life after your formal working life comes to an end.
Leaving behind career that has defined you as a person is difficult; retirement becomes a whole new identity. Different focus and interests come into play. Retiring gradually is recommended, which means you need to start paying attention to this development in your life earlier on. And this means paying attention to how you treat money, its value, your own values, and understanding of yourself.
We can go down the route of advising about savings plans or finding hobbies or taking up a second career, etc, and all that is valuable – but even more valuable is your responsibility and towards the plan itself. And by that, we mean you should be looking at how best to manage your money the closer you get to your retirement day.
Whilst a balanced portfolio of activities is important, along with a carefully established financial portfolio, the practicalities of aging can be neglected. Many people don’t wish to think about the consequences of growing older. Some at 85 are still denying that age is creeping up in various impediments, leaving their lives to be sorted out by others. They rarely keep up with the times, and one day find themselves looking bleakly at dwindling options.
- However, there is a balance and check process that can be very helpful in dealing in probably the biggest mindset change since you left school or got married.
- The old maxim still applies: don’t put all your eggs in one basket. Get yourself a reliable financial advisor who can check your retirement plan for you, and advise when changes are necessary.
- Be aware that age brings physical ailments, and that these can be life-changing. Where will you go if you can no longer stay in your home of the last fifty years? What will you do if you can no longer drive?
- It’s fair to say that not everyone has the same retirement experience. You may approach this time with keenness or trepidation, or even depression. Admitting the pitfalls of age is actually a good starting point, although daunting.
- Retirement, like all major changes in life, is an emotional process and takes place over several stages.
Planning: When planning your retirement you may often be more concerned about the money than where you might be in later years. Are you going to be happy? This is as important as the money side of things; don’t let your finance dictate where and how you will live, rather choose your lifestyle and living space ahead of time, and get your finances into gear to cope with these plans as practically as you can.
Keep your age in mind: Choosing to live way out in the country or in some lonely Spanish village may sound romantic, but in reality as you age, you need to remember things like medical care, distance to clinics or hospitals, transport facilities, and eldercare needs. Be prepared to enjoy your retirement within not only your financial means, but also with consideration for the physical and psychological bumps along the road. Challenges envisaged and dealt with early on can make a vital difference.
Taking change in your stride: Any major change can be stressful. And retiring can bring stress as well as benefits. We tend to give lots of thought to planning for the financial aspects of retirement, but may well overlook the psychological impact of retiring from work. After a few months the novelty of being on “permanent vacation” starts to wear thin. Give your days structure: compose a day planner filled with various pastimes and engagements, hobbies, sport and interests. Feeling bored and aimless is a common sentiment of retirees who have not considered this sobering aspect of their retirement.
Acceptance: The most important aspect of retiring with the right frame of mind, is accepting that change is inevitable. Not only financially, but also physically and psychologically. Build resolve, take action and respond with resilience – railing against something that you can’t change can be exhausting. Set new goals, make sure you keep up friendships and a social life, find new purpose and meaning, develop a healthy lifestyle. Don’t find yourself struggling to manage stress after the fact – get into the right mindset well before the retirement years, and the transition will be so much easier.
Taking charge of transition: Don’t let life just ‘happen’ to you – be present. One of the most effective ways of taking charge of this important change in life, is to ensure you have a reputable professional to handle your retirement funds, and to advise you on changes and adjustments. Get the big picture from people in the know, so you don’t end up making wild decisions based on rollercoaster emotions.
Empfin Solutions – the team that keeps you and your team happy
We’re an Old Mutual franchise with our primary focus on the three main areas of concern in everybody’s financial planning:
- Your Company Benefits – advising on, and servicing umbrella pension and provident funds.
- Your Personal Financial Planning and Provision – Estate planning, Wealth Creation and Retirement Planning.
- Your Assets – motor and household insurance.
Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.
Find out how you can benefit at: www.empfinsolutions.co.za
