Embracing Retirement: Navigating the Financial and Emotional Transition

Dear Retirees and Soon-to-be Retirees,

For decades, your life has revolved around schedules, deadlines, and responsibilities. Those responsibilities may have included juggling kids sports while trying to make dinner and handling work commitments. That life is changing. Stepping into retirement requires changing your daily rhythm, rediscovering hobbies, passions, and interests that may have taken a backseat amid the hustle and bustle of work and family life.

It's a moment to revisit forgotten dreams, to immerse yourselves in activities that bring joy, fulfillment, and a renewed sense of purpose. Whether it's gardening, volunteering, traveling, or learning a new skill, working part-time to keep busy/social or working on a passion project. Retirement gifts you the luxury of time—an invaluable asset often underestimated during your working years. Navigating the financial and emotional transition represents the RE of RETIRE:

Are you Ready for this next step of your life?

How do you Envision the coming years?

Pause and reflect. How do you feel about this change in your life?

The world is different now, Pong is no longer the video game of choice in 2024. Your parents’ version of retirement is in the past. Modern day retirement is different for everyone - mostly because we all have a unique set of circumstances that dictate how (and when) we retire. You’ll face many important questions along your path to an emotionally fulfilling retirement:

1)     Have you thought about what’s important to you as you stop working full-time and settle into your retirement years?

2)     How (if at all) do you want to change your lifestyle in retirement?

3)     Are you and your spouse (or loved ones) on the same page about when to retire?

4)     Do you intend to spend more money in your earlier years of retirement while you are more active and able to?

5)     Are you going to work part-time (Hybrid Retirement)?

It’s easy to forget how much value we get from our jobs (it’s not just about the money, right? 😊) – there is the lifestyle it provides, a sense of purpose and, if we’re lucky: friendships/social connections. I regret to be the bearer of bad news, but that all ENDS when you decide to hang up the skates like Wayne Gretzky. He for example, has now transitioned into the business world; involved with Gretzky Winery in Niagara-On-The-Lake, one of my favourite establishments in the Niagara Region. I highly recommend it if you ever make it to our corner of Ontario. Wayne SHIFTED his purpose from the NHL to other ventures and opportunities to keep him busy in retirement. Heck, remember when he tried and failed as a coach? I say all of that to demonstrate how different life can be in retirement.

The chart below was a real eye opener and something my clients say all the time. "I miss the social interaction, I miss my friends and having that purpose work provided me with." Powerful words that hold so much meaning and are the opposite of what they thought before retiring.

It’s common to take time to adjust to retirement. At first it can feel like a holiday - you can relax, sleep in, travel more or spend time with family and friends. However, once the ‘honeymoon’ period wears off, you may find yourself looking for more purpose.

Many people don't spend enough time thinking about how they will fill their days without a full-time job. Please don’t make that same mistake. I’m a “Numbers Guy” so I’ll throw a statistic at you; retirement increases the probability of suffering from clinical depression by about 40 per cent. WOW, that can be a surprise to you as you consider retirement. That is why it is so important to have a plan on what you want to do and achieve in retirement. I have seen this firsthand; a client - lets call him Larry, and I ran the numbers. We put all the steps in place and he sent in his 2 weeks notice to retire. He was so excited and ready for this next step in his life. After a few months - I checked in, he was already back at work.

“Cody, I just got so bored and lonely being at home. There are only so many projects to complete, golf rounds to play and meals to cook. I need something to wake up for and to have a sense of PURPOSE”. Like I said earlier, retirement is different for everyone. For Larry, it was social connections and a sense of feeling needed. It’s important to plan for your retirement and the lifestyle you wish to live during it. You’ll need to consider more than your financial goals. Let’s look at some things to consider in the lead up to your big day and make it enjoyable.

Financial Readiness:

Undoubtedly, financial readiness is a crucial aspect of Retirement Planning. It's about ensuring that your hard-earned savings and investments can support your envisioned retirement lifestyle. Questions about your retirement income, expenses, healthcare, and long-term care may linger, causing understandable concern.

But here's the aspect often overlooked: the emotional and lifestyle transition. Retirement isn't just an end; it's a new beginning. It's an opportunity to embrace newfound freedom, explore passions, and redefine your purpose. For years, your identity might have been closely tied to your profession. Retiring might feel like bidding farewell to a part of yourself.

Lifestyle Plans:

Amidst this change lies the chance to discover a renewed sense of self. It's a time to explore hobbies, work on your terms doing what you care about, delve into lifelong passions, or contribute to causes you care deeply about. It's an invitation to savor life's simple pleasures—to travel, spend time with loved ones, or even pick up that book you've always wanted to read.

The transition into retirement is not just financial, it's a mental and emotional transition. It's about embracing the freedom to shape your days according to your desires, not your obligations. It's about finding joy in the small moments and celebrating the journey you've traveled to get there.

Sure, there might be uncertainties along the way. But in these uncertainties lie the beauty of this chapter—unwritten pages waiting for your unique story. It's about realizing that retirement is not just an end goal; it's a canvas awaiting your masterpiece.

So, to all retirees and those about to embark on this journey, take a deep breath. Reflect on the path that brought you here and look ahead with optimism. Embrace this transition with an open heart and an adventurous spirit. Remember, retirement isn't just an end; it's a beautiful new beginning.

Mindset Shift:

Perhaps the most profound aspect of retiring is the mindset shift it demands. Shifting from the structured routine of work to a more flexible, self-directed lifestyle can be both liberating and daunting. It's about cultivating a new mindset that embraces change, resilience, and adaptability.

Retirement marks a juncture where your identity transcends your professional title. It's an invitation to discover tall parts of you — to embrace personal growth and self-discovery. Take the time to reflect on what truly brings you happiness and fulfillment, nurturing your mental and emotional well-being in this new phase of life.

In Conclusion:

Retirement isn't merely a destination; it's a transformative journey—one that encompasses financial preparedness, lifestyle transitions, and a profound shift in mindset and even hardships. It's about cherishing the moments, relishing newfound freedoms, and embarking on new adventures.

For my client, lets call her Trudy, retirement meant going to the theatre with her daughter, and seeing her grand-children play hockey. It was about time freedom and doing what she wanted, when she wanted. I am so glad we could help her get there. If you are struggling with your purpose in retirement or what to do, here are some steps to take a few years before the big day. It is a list designed to provide several to do items from 5 years away from retirement, 3 years, 2 years, 1 year away and 6 months. As you step into this new chapter, remember to be kind to yourself. Allow yourself the grace to navigate this transition at your pace, embracing the emotions that arise along the way. Surround yourself with a supportive community, seek guidance when needed, and above all, enjoy the opportunity to craft a retirement that reflects your dreams and aspirations.

Congratulations on reaching this significant milestone. Embrace it with open arms, for it is the beginning of a new chapter filled with endless possibilities.

That wraps it up for today. In a few weeks, I will provide a guideline on helping you decide when it's right for you to retire and some tips to prepare for the big day.