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.
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity StakeESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should HaveEvery adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
I'm a Financial Professional: Here's My Investing Playbook for Political UncertaintyFor successful long-term investing in a politically charged environment, investors should focus on economic data, have a diversified portfolio and resist reacting to daily headlines.
-
The Truth About the Dark Side of Rooftop Solar PanelsRampant bankruptcies in the solar panel industry have left many consumers with systems that don't work and no way to get them fixed. Worse, they're being hounded to keep paying despite not receiving what they were promised. What can they do?
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client StrategiesHere are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's GuideWhen the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
