It is impossible to know how the new phase of retirement is going to feel and how deeply it will affect you—until it happens. I want share some of the common fears people have about the process of retiring, so we can prepare for them both financially and psychologically.
Retirement Fears About Lifestyle
Fear is a powerful motivator, and the fear of losing money is a substantial one. But overwhelmingly, the greatest fear people have about retirement is not losing their money, but rather losing their lifestyle. Many soon-to-be retirees are uncertain about just how different things will be. Many different fears about retirement fall under this umbrella, including:
- I don’t want to have to live less comfortably.
- I don’t want to have to go back to work.
- I don’t want to lose connection with my friends.
- I want to stay active.
- I don’t want to settle for lower-quality health insurance.
Overcoming The Fears About Lifestyle
Nearly every aspect of the planning process relates back to knowing the financial details of your life: in other words, having a monthly budget. Create a detailed budget, including all your income and detailed expenses. Now go through your budget (preferably with your partner) and try to note down what will change about it after retirement. Which expenses will increase? Which will likely go down?
Through this important document, you’ll be able to see what “normal” is for your family, and so be able to better understand how much difference retirement will make. Moreover, on the psychological level, simply reviewing your monthly budget can better prepare your mind for the transition.
Most of the time, the financial aspects of retirement planning begin to fall into place first. For your plan to be successful, though, it really can’t stop there. Look at some points that deal more specifically with that other, more human side of preparing for retirement: your life!
Retirement Fears About “How To Say It”
Many clients told me how hard it was for them to bring up the fact that they wanted to retire to their spouses. The subject of leaving work is an intimidating one, because of the possible feelings of fear and uncertainty for the future it may bring up in your spouse. Moreover, telling one’s spouse can be more difficult for some. You can imagine how hard it would be to say, “Honey, I’m thinking of retiring” if you’ve never talked about it before. As such, my best piece of advice for couples is to make sure that when you bring up retirement, it isn’t a foreign topic!
Overcoming The Fear Of Telling Your Spouse
As is true with most difficult things in life, we want to minimize emotions and maximize productive discussion. Having a plan is a good way to achieve this. With a structure in place, you’ll find it easier to speak from the heart about this huge transition. Tell your partner how you’re feeling, physically and emotionally. Relate your intentions with as much detail as possible. Try to give a timeline that shows the planning and thought you’ve put into it. Finally, try your best to express why you think this is the best plan, and if necessary, assure him or her that it’s going to be OK. Sincerity and forethought go a long way.
Retirement Fears About “Saying Goodbye To Work”
When you finally say goodbye to your workplace, you’ll likely be confronted with a wide range of feelings. After spending the main portion of your life in the work force—some largely with the same company— you’ll have grown attached to the people, the place, and even the work schedule. As such, it can be very hard to let go. There’s no easy or “normal” way to confront these complex feelings. Stay close with the ones you love during the transition, and try to keep in tune with what you’re feeling, however you’ve been accustomed to doing that, whether through journaling, prayer or meditation, or just talking with your spouse and loved ones.
As the transition unfolds, you’re likely to see a significant reduction in things to do. You’re also going to realize that the time you have is precious, and you’ll want to make the most of it. So schedule your time in a way that satisfies you. You can visit your children more often, use the time to make some home improvements, volunteer, or find a hobby that matches your interests. Just as you need to plan how our finances will progress, it’s very important to take the time to plan how you’ll use your free time. By doing so you can avoid the potential stress and depression that may come from transitioning away from your old lifestyle.
Overcoming The Fear Of Leaving The Workplace
The longer you wait to start thinking and planning for your retirement, the more likely you will be to have fears about it. We’ve designed our business model to never neglect the human concerns that retirees have. We do things like take care of the burden of paperwork, giving you the freedom to think about the more important issues at hand. Dale Carnegie summed it up nicely when he said, “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit at home and think about it. Go out and get busy.” For your psychological, as well as your financial well-being, go out there and get busy.
Schedule an in office or over the phone consultation to discuss how Miramontes Capital can help you with your new beginning through retirement and estate planning.