Imagine you are retiring. What comes to mind? For some, it is a fantasy of relaxation, travel, time with family, and pursuing hobbies. For others, retirement evokes fear. If you fall into the second camp, hopefully this information will prove useful!
The most common fears people have about retirement are:
1. Not having enough money: This is the number one fear of retirement, and for good reason. The cost of living continues to rise, and Social Security alone may not be enough to cover all of your expenses. If you haven't saved enough for retirement, you may have to make some difficult decisions about how to cut back on spending or ways to increase income.
2. Losing identity: For many people, their job is a big part of their identity. Upon retiring they may feel lost and unsure of what to do with their time. It's important to start planning for retirement well in advance so that you can have time to find new activities and hobbies that you enjoy.
3. Health problems: As we age, we're more likely to experience health problems. This can be a major concern for retirees, as it can impact their ability to live independently and enjoy their retirement. It's important to stay active and healthy as you age and to have a plan in place for how you'll manage any health problems that may arise.
If you're feeling anxious about retirement, there are a few things you can do to manage your fears:
1. Start planning for retirement right away: It is never too early! Take this one step at a time to avoid emotional overload. Start by assessing your financial situation. You can check your Social Security account to see how much money you'll get monthly by electing to receive benefits at any age between 62 and 70.
2. Do an identity check: Assessing and understanding one's identity is a complex and ongoing process involving introspection, self-reflection, and exploration. Prior to retirement, reflect on your values, beliefs, interests, and passions. We are all more than our business card and can take time in retirement to explore parts of ourselves we didn't have time to when working. Explore your passions and interests!
3. Get regular health examinations: Prior to retirement, get regular check-ups and preventive screenings. Don't put off the important screenings and wellness checks. These check-ups include dental, vision, and medical.
Retirement can be an emotionally complex time for many, especially if the retirement wasn't expected or is expected but occurs earlier than at typical retirement age. Don't hesitate to seek help from a professional, who can help you understand your fears and provide you with coping mechanisms.
Remember, retirement is not just an end; it's a new beginning. With careful planning and self-discovery, you can navigate this transition with confidence and look forward to a fulfilling retirement that reflects your true self and your passions.
FAQs
An increasing number of people are worried that they won't have enough money to live comfortably in retirement, and men aren't as financially secure as they once were, according to an annual survey from AARP.
What do people worry about in retirement? ›
An increasing number of people are worried that they won't have enough money to live comfortably in retirement, and men aren't as financially secure as they once were, according to an annual survey from AARP.
What is the biggest regret in retirement? ›
Some of the biggest retirement regrets include:
- A vague financial plan.
- No retirement goals.
- Counting on long-term employment.
- Losing touch with adult children.
- Experiencing drawbacks of early retirement.
- Not focusing on what really matters.
- Failing to embrace a slower pace.
- Not starting a second-act career sooner.
Reorientation: Often considered the hardest stage, this is when you're most likely to start re-evaluating your retirement lifestyle. It involves asking the hard questions, relearning what does and doesn't work for you, so you can get the most out of your retirement.
What are the stresses of retirement? ›
Your retirement-related stress may be tied to the way in which you retire, the change to your daily structure, the impact on your relationships, feelings of isolation, and financial concerns.
What is the number one fear of retirees? ›
1. Not having enough money: This is the number one fear of retirement, and for good reason. The cost of living continues to rise, and Social Security alone may not be enough to cover all of your expenses.
Why do some people fear retirement? ›
Financial security
They may be concerned about running out of money, not being able to afford healthcare, or not being able to maintain their current lifestyle (or achieve their dream retirement lifestyle).
What is the number one mistake retirees make? ›
Similar to the price of gas, we cannot predict future market returns; therefore, one of the biggest mistakes retirees make is failing to plan for the combination of market volatility and withdrawing money from their investment accounts, also known as sequence of returns risk.
What is the first choice of most retirees? ›
The government-backed-guaranteed return schemes should be the first choice. These are the Senior Citizen Saving Scheme (SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY) and Post Office Monthly Income Scheme (PO-MIS).
What was the worst year to retire? ›
As Pfau notes, the period in the late 1960s and early 1970s was a tough time to retire. Inflation ran rampant, and the S&P 500 scored several significantly negative years in that period. Returns were particularly poor in 1966, 1969, 1973 and 1974.
In some cases, it can decline for months or even years. As a result, some retirees like to use a 3 percent rule instead to reduce their risk further. A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year.
What is the first thing to do when you retire? ›
The first thing you should do in your retirement is decide how you're going to spend it. Creating a retirement checklist or setting yourself goals and aspirations in the form of a bucket list will provide a structure, which may be lacking once you have stopped working.
What do people struggle with in retirement? ›
Transitioning to retirement is more than a financial change. It's also a significant mindset change. Many retirees find the adjustment challenging, and for some, it may lead to anxiety, depression and other health problems.
What do retirees worry about? ›
Retirement concerns for most people tend to center on health and money, which are in many ways intertwined. For example, your health plays into how long you can work, how much you'll need to spend on insurance and medical care, where you can live, and your quality of life in retirement.
What is retirement anxiety? ›
Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement. Examples include concerns about how they'll fill their time, financial worries and feeling a loss of identity.
What are the emotional pitfalls of retirement? ›
Common challenges of retirement include:
Struggling to “switch off” from work mode and relax, especially in the early weeks or months of retirement. Feeling anxious at having more time on your hands, but less money to spend. Finding it difficult to fill the extra hours you now have with meaningful activity.
What is the number one concern for retirees today? ›
1. Running out of money. The number one concern Jordan Gilberti, a senior financial planner at Facet, says he hears from retirees and pre-retirees is the fear of running out of money.
What is the most common mistake we make with our retirement? ›
Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.
What is one of the biggest problems individuals can face in retirement? ›
“The main problem people face upon retirement is organizing their financial lives and finding new purpose,” says Robert Reilly, a member of the finance faculty at the Providence College School of Business and a financial advisor at PRW Wealth Management in Boston.
What age should you worry about retirement? ›
The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.
