7 Tips To Prepare For Your Upcoming Retirement
Planning for retirement is more than just finances.
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Surprisingly, many retirees return to work for reasons other than finances.
According to T. Rowe Price’s March report, “ ‘Unretiring’: Why Recent Retirees Want to Go Back to Work ,” 20% of retirees are working and 7% are actively seeking work. While many people work in retirement for financial reasons, the study found 45% of recent retirees chose to work for social and emotional connections.
Work provides more benefits than simply an income stream. The T. Rowe Price survey responses point to the need to also plan for retirement with a lens on the non-financial aspects of work. Cultivating social and emotional connections outside of work is something to do pre-retirement because the transition may be more challenging than people realize.
Here are seven tips to prepare for a rewarding retirement:
Don’t Retire
Take inventory of the non-financial aspects of your job. Do you enjoy the contribution to your company and society using your skills and talents? Do you appreciate the social aspect of your job? If so, consider staying at your workplace either in your current job or in a new role, such as a consultant or contractor.
Why working matters: Assuming you can afford to retire, you are financially independent. You work because you choose to. If you have contributions to make and enjoy what you are doing, why retire?
Work Part Time To Transition To Retirement
Take advantage of current trends. There may be more opportunities to transition to retirement, with companies offering more part-time work. According to Dow Jones, full-time jobs have shrunk by 1.5 million in the past 14 months, while part-time jobs have increased by 2 million during the same timeframe (from June 2023 to September 2024.) Working flexible hours may help to transition to retirement, making it easier to find time to meet new people and build community connections.
Build A Life You Want To Step Into
Work takes up not only several hours in a day but also mental energy. So, it can be challenging to build a robust life outside of work. Start building social connections and community outside of the workplace. Dedicate time and make a conscious effort to make new friends or deepen existing friendships.
Start A New Or Rekindle A Previous Hobby Before You Retire
An enjoyable hobby is mentally stimulating and gives you something to look forward to. If you start this activity pre-retirement, you can purchase the equipment needed while you are on salary and don’t need to draw from assets.
Make Connections In Your Local Community
Join a couple of groups, such as ones that are civic-minded and hobby-related. Arthur Brooks, a Harvard professor and expert in happiness, states on his website that satisfaction comes from wants divided by what you have. He suggests happiness comes from wanting less in terms of material things and building up the fab four: faith, family, friends, and work (or meaningful contribution). Supporting your local community can replace the benefit of social connections at your workplace.
Don’t Wait To Travel
Why wait until retirement to pursue your travel dreams? While you don’t have unlimited time off while still in the workplace, consider taking two weeks at a time to start traveling now. Waiting to retire to pursue your travel goals could result in negative results because your health is not guaranteed. Go while you can.
Get In The Best Physical Shape Possible
Exercise and happiness go hand in hand. It could be going for a walk or taking a hike. You can literally step into retirement. Use your employer’s resources, such as a company-sponsored wellness program to optimize your health for a long and happy life. Long-term studies in academic journals like Circulation and Cureus have shown that regular moderate physical activity reduces mortality by 19% to 25% for all causes. Exercise has a positive impact on mood, reducing depression and anxiety.
People may want to return to work because they get immense enjoyment and fulfillment from their careers but only fully realize these emotions once they retire. Some people may prepare for the financial aspect of retirement but not consider the social and emotional aspects. Either way, taking stock of what provides life satisfaction is a worthwhile project, especially as you near retirement.
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