The 5 Stages of Retirement (and How to Skip Three of Them)

An older man smiles as he looks at his phone with mountains in the background. — (Image credit: Getty Images)

In the world of retirement, a growing concern emerges as retirees, despite having the financial means for their envisioned retirement lifestyle, find themselves grappling with isolation, depression, identity, lack of purpose and mental health challenges. This poignant issue stems from a profound disconnect between the perceived desires of retirement and the essential elements required for true happiness and well-being.

In the initial phases of retirement, it's common for individuals to plan a bucket list of trips and quality time with their loved ones. Most fail to implement the wish list of activities. Their retirement plans never experience lift-off.

For those who embark on the bucket list, the excitement of the jet-setting lifestyle fades after a year or two. They start strong, and the once-thrilling lifestyle loses its allure.

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The answers lie in the inherent human need for connection. Our happiness, joy and overall well-being are intricately tied to our ability to connect and contribute to the lives of others. Fulfillment often stems from the knowledge that our actions positively impact those around us. This doesn't necessarily require a return to a stressful job; instead, it signifies active involvement and connection with others, contributing to meaningful endeavors in our family, community, church, clubs and personal passions.

For those who have the financial means to retire but neglect their emotional needs, a challenging journey through the five stages of retirement often unfolds. Recognizing that true contentment comes from more than just financial security, addressing emotional needs and staying connected becomes paramount in navigating the post-retirement phase.

Here are the five stages of retirement (and how to avoid going through three of them):

1. Pre-retirement.

Before the actual retirement phase begins, individuals envision their new life and strategically plan for it. This pivotal stage sets the foundation for a successful transition. Skipping this step positions the retirees for steps three, four and five. Implementing this step makes this a two-step process.

2. Full retirement.

This is the phase where the blissful reality of fully experiencing one's wealth sets in. This is a time of calming yet exhilarating sensations as retirees immerse themselves in the fruits of their labor. Enjoying one’s wealth is more about relationships, identity and purpose than it is about money. The exhilaration of full retirement is rarely experienced because most retirees skim or skip over step one.

3. Disenchantment.

Unfortunately, the retirement journey isn't without its challenges. Feelings of unmet expectations, disillusionment and disappointment may surface during this stage, requiring introspection and adjustment. When retirement is not properly planned, the transition to retirement life immediately impacts mental and physical well-being. Life expectancy is negatively impacted if this stage lasts too long.

4. Reorientation.

This is a crucial period for resetting expectations, reviewing goals and planning anew. Retirees navigate this stage by adapting to changes and embracing a more realistic outlook on their retirement. In other words, they must start over with step one and start planning their retirement with increased diligence and awareness.

5. Reconciliation and stability.

The final stage involves restoring a sense of purpose and direction in life. Finding stability in day-to-day living becomes paramount, leading to a balanced and fulfilling retirement. This is only possible with expectations that are in harmony with preplanning, identity and purpose. This is step two, take two.

Preventing steps three through five

Taking a preemptive approach allows retirees to avoid the challenges presented in stages three through five. By acknowledging the emotional nuances of retirement, individuals can proactively shape their experiences for the better. The goal is to experience step two on the first try.

Conclusion

Central to an effective retirement is the relationship with wealth, where money is viewed as a means to an end. Beyond financial considerations, true wealth encompasses having enough time, energy, love, relationships, friends and money.

Being truly rich is not merely having a surplus of money; it is having enough of everything that brings joy and fulfillment. Therefore, a retirement plan must extend beyond financial aspects to encompass the non-financial elements crucial for a satisfying lifestyle.

As retirement approaches, it is imperative to integrate these non-financial facets into the overall plan. Money serves as a tool to support a lifetime, but the lifestyle it sustains must be a source of genuine happiness and joy.

A successful retirement isn't just about securing financial stability, but crafting a holistic and fulfilling life post-employment.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Dr. Richard Himmer is a seasoned professional with expertise in Emotional Intelligence (EI), Clinical Hypnotherapy and Workplace Bullying prevention. He holds an MBA, a master’s degree in psychology and a PhD in Industrial and Organizational Psychology. He combines academic knowledge with practical experience. His doctoral dissertation focused on the Impact of Emotional Intelligence on Workplace Bullying, showcasing his commitment to understanding and addressing complex workplace dynamics. Dr. Himmer leverages the subconscious (EI) to facilitate internal healing, fostering healthy interpersonal relationships built on trust and respect.