Retirement Preparedness: How to Overcome Financial & Emotional Challenges

If you don’t feel prepared for retirement, you’re not alone.

Retirement preparedness doesn’t just mean having enough money to leave work but includes emotional challenges like your sense of self and what your future might look like.

Set yourself up for a rewarding retirement by meeting the following common challenges, head-on!

Financial stress

Regardless of how much you’ve saved, fear of outliving your super can lead to over-cautious spending and avoiding social activities.

A financial planner will help you set retirement goals and develop a savings strategy to achieve them – the earlier you begin planning, the better!

When the time is right, your planner will assist you in gently transitioning to retirement. This could involve moves like:

• gradually reducing work hours, and

• regularly reviewing lifestyle goals to meet your financial strategy.
  

Emotional challenges

Identity loss

It’s natural to wonder who you are when no longer defined by your job title. Employment creates a sense of identity and how we fit into society. Stepping away from work can result in confusion and feelings of loss.

Boredom/social isolation

For many, retirement means passing each day with nowhere to go and no-one to talk to. Loneliness, often stemming from a reduced income and narrowed social life, is a known cause of depression and anxiety.

Tackle emotional challenges through community involvement in:

• special interest groups,

• swimming/walking groups,

• book clubs,

• volunteering,

• learning:

-    University of the third age (U3A),

-    Men’s sheds, etc.

Organisations like Beyond Blue or Lifeline offer support and advice if you’re feeling overwhelmed.

Kick off your new lifestyle through:

• Lifestyle magazines and social media pages dedicated to retirees. There are loads out there; a Google search will quickly find them.

• Creating a free Meetup account to locate groups and events in your area. Can’t find one you like? Start your own!
  

Retirement represents a significant, often daunting, lifestyle change.

When planning your retirement, consider not just what you’ll need financially, but also emotionally and socially, that way you can embark on the next chapter of your life optimistically and with confidence.

You’ve earnt it!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.