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While much of the focus of retirement planning is typically on the financial side and ensuring you have enough savings to support your lifestyle, it’s equally important to consider the mental, emotional, and social changes that come with this major life transition. These non-numerical aspects of retirement are crucial yet often overlooked topics in retirement discussion. Just as important as financial planning for retirement is planning for the things that money can’t buy” social, sense of purpose, and passions beyond your career.
Retirement is much more than simply stepping away from a career. It’s a significant life change that can deeply affect your mental and emotional well-being. For many, work and career are a core part of their identity, after having spent decades building a career and achieving professional success. Transitioning away from this can lead to a sense of loss and a lack of purpose. Maintaining or rebuilding a sense of purpose is crucial for mental health, even in retirement.
A sudden lack of a daily routine can be jarring, and many retirees find themselves struggling without the structure their career provided. This shift can lead to feelings of isolation, especially if much of a person’s social life was largely tied to the workplace. The social connections, daily interactions and conversations that occurred at work are no longer part of daily life, which can be a significant adjustment. This social aspect of life is often underestimated but is critical in maintaining mental health. Without it, retirees may experience increased feelings of loneliness and depression especially in the early, initial years of retirement. While life does not need to be lived in a hurry, and retirement affords us the chance to slow down. It doesn’t happen automatically, sometimes you have to be intentional and take a longer-term approach.
To navigate these challenges, many retirees choose to find new activities and purposes in retirement. This could be through part-time work, volunteering, or engaging in hobbies and interests that may have been previously put on hold. Serving on boards, participating in charity work, or even taking classes can provide structure and a sense of fulfillment. It can also provide mental stimulation, which is a factor for many while employed and actively working. One effective strategy for many is to plan for a “tiered retirement,” where you gradually reduce your working hours over several years instead of stopping abruptly. This approach allows for a slower, smoother transition and time to adapt to the new lifestyle.
Retirement can also bring changes to personal relationships. It’s crucial to nurture and invest in these relationships throughout your working years to ensure a smoother transition. Lifestyle changes are also common. Many retirees find themselves spending more money than anticipated, as they have more free time to travel and engage in leisure activities.
Retirement can be an incredibly fulfilling and happy period. Retirees often report higher levels of happiness as they can finally enjoy the fruits of their labor. Spending more time with family, traveling, and pursuing hobbies can lead to significant improvements in mental and physical health. Career success can often come along with sacrifice and not always being present with family and friends due to work obligations. Retirement is a time to step back and spend extra time with family, children and friends and rebuild those important connections. Another great way to embrace retirement is to create a bucket list of activities and goals. While this exercise can be difficult for some individuals, creating a list can help you identify things you’ve always wanted to do but never had the time to pursue. With the freedom and resources available in retirement, this is the perfect opportunity to explore new interests and adventures. The happiest retirees report that they have activities/interests they love to pursue, live in some vicinity to their family and children and have a few close friendship connections[1].
While financial preparation for retirement is critical, it’s equally important to plan for the non-financial aspects. Be intentional about how you will spend your time, maintain social connections, and find new purposes to ensure a happy and fulfilling retirement. By considering these factors, you can navigate this significant life change more smoothly and enjoy the many opportunities that retirement offers. And remember, retirement is not just an end, but a new beginning filled with potential and opportunities.
[1] Source https://www.forbes.com/sites/wesmoss/2024/03/13/five-lifestyle-secrets-of-the-happiest-retirees/
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Securities and advisory services offered through EWA LLC dba Equilibrium Wealth Advisors (a SEC Registered Investment Advisor).
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
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* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
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* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
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* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
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EWA, LLC dba Equilibrium Wealth Advisors, is an SEC-registered investment advisory firm providing investment advisory and financial planning services to clients.
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In 15 minutes we can get to know you – your situation, goals and needs – then connect you with an advisor committed to helping you pursue true wealth.