Preparing For Retirement: More Than Money in the Bank

Financial security is just one part of the equation when planning for a happy and productive retirement.

By: Norman Abeles, PhD, professor of psychology at Michigan State University

Everywhere one turns today there is information about the importance of saving enough money for a comfortable and secure retirement. Sufficient financial resources in retirement are important, but according to psychologists who study retirement, money is only one part of the equation for a happy and productive life after one stops working.

You also have to plan in terms of developing other interests and making a gradual transition in terms of where you derive your self-esteem.

For men and women who defined themselves by their careers, leaving that identify behind is often very difficult.  Some retirees might feel that working gave their life purpose and they have little to contribute to society in this new chapter in life. That simply isn’t true.  It’s important to find new ways to define oneself.  Taking on new responsibilities within the community or church can provide a new sense of purpose and self-worth.  Serving others is the best way to feel useful and engaged.

Isolation in retirement is a growing epidemic affecting over 8 million older adults across the country.  In addition to the emotional symptoms isolation brings on, such as sadness, loneliness, or depression, one study found that prolonged isolation resulted in an increased risk of early death. Avoiding isolation is particularly important if you aren’t married or don’t have a partner. According to the Bureau of Labor Statistics, single people age 65 and over spend an average of 10.1 waking hours alone each day in their free time.

The best way to avoid isolation is to take charge of your social calendar. Look for opportunities to socialize as part of your daily or weekly routine. Local options could include taking part in programs offered at your library, senior center, church, or the Y. Start or join a book club, cooking club, or music appreciation night, or pursue a favorite hobby, sport, or volunteer activity. And don’t limit yourself to social opportunities only with others in your age range. Spending time with people of all ages can be very enriching, pre-retirement and post-retirement.

Relationships with spouses and children often change during retirement as well. Couples who were used to saying goodbye in the morning and “how was your day?” in the evening are now suddenly together in the middle of the day as well. That’s an adjustment for both parties.

It’s not uncommon to hear about people who die within two years of retiring.  Studies have shown that a sudden drastic change in routine can be a shock to one’s system and can sometimes cause medical issues.

Many psychologists recommend retiring gradually, going to a part-time schedule or doing consulting work, before stopping work altogether. The new free time can be spent investigating new hobbies or rediscovering old ones.

Don’t be inflexible in planning for retirement and don’t put all your retirement eggs in one basket. For example, many retirees plan to spend a lot of time traveling but for some a physical aliment makes extensive traveling impossible. A balanced portfolio of activities is important—travel, hobbies, volunteer work, exercise, continuing education—are all activities that many retirees find rewarding.

One’s retirement years can be among the most satisfying and enriching in life.  However, it does take some preparation and patience to maximize the opportunities available in retirement.