For many retirees, retirement lasts a lot longer than it used to. After a few years, some might start wondering what happens when the retirement honeymoon phase is over.
Why is retirement the entire focus of my business? It’s the same reason we hear about retirement on a nearly constant basis. The reason is because roughly 12,000 people a day are retiring and will continue to for the next 15 years. This is not only an enormous amount of people retiring, but those retirees will live far longer in retirement than any previous generation.
Gone are the days of retiring at age 65 only to live until age 70. For some people, retirement could last more than 30% of their lives. A nice long retirement? It’s like your honeymoon phase. Days filled with travel, dining out, more free time to do whatever you want, or nothing at all if you prefer. For me, I envision lots of travel and perhaps surfing all over the world. What’s the problem with that?
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
We Love the Honeymoon Phase
Unfortunately, they call the honeymoon phase a phase for a reason. The reason is because it doesn’t last long. We love the honeymoon phase. It’s filled with new and exciting adventures. We tend to not see issues because we are so enamored of our new life. Over time, however, we start to realize everything isn’t quite perfect.
The end of the honeymoon phase comes with the realization for some retirees that they may have lost as much as they have gained in their new retirement life. A loss of identity is the biggest reason retirees are dissatisfied with retirement. If I’m not a “insert your profession here,” then who am I?
With retirement comes a decrease in social interactions as well as a loss of routine. The same freedom to do whatever you do or don’t want causes many retirees to crave a sense of routine. After all, you followed a routine for decades, and to suddenly stop can be a difficult transition to make. A loss of identity from retirement can also lead to higher levels of anxiety and depression.
So how do we deal with the end of the honeymoon phase? For starters, figuring out your new identity can help. Ask yourself: What do I still want to accomplish in life? What am I most passionate about?
Volunteering Helps Create New Social Interactions
You have built a lifetime of skills and knowledge that others desperately need to learn. Are there organizations you want to support? Volunteering your time can help set a new routine, create new social interactions and, most important, give you a stronger sense of purpose.
Having a sense of purpose in retirement has been shown to be one of the key determinants of happiness in retirement. A sense of purpose can make retirees feel “normal” again. This leads to extending the feelings of the honeymoon phase long into retirement, if not for the rest of your life.
Retirement is far more mental than it is financial. Retirees have been shown to be able to adapt their lifestyle to most income levels, but happiness in retirement has been shown to be harder to achieve.
Having a plan before you retire can help increase the odds of satisfaction with your retirement itself and, as we say in the surfing community, just enjoy the ride.
Securities offered through Kestra Investment Services LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services or Kestra Advisory Services. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax adviser with regard to your individual situation. To view form CRS visit https://bit.ly/KF-Disclosures.
-
Ten Cheapest Places to Live in TexasProperty Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for YouAI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden RisksPotential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid OffLife insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
