Why Retirement Isn’t Like the Summer Holidays

Summer holidays are a time to relax, unwind, and escape the daily grind.

For many of us, they’re the only time of the year we get to sit back, fall asleep in the sun and completely switch off. It’s no wonder, then, that many of us dream of the day when we can leave our jobs and finally embark on that endless summer holiday: aka retirement.

However, while the notion of a perpetual break might sound appealing, retirement isn’t quite the same as an endless summer holiday. In reality, it requires careful planning, both financially and emotionally, to ensure it’s a success.

The myth of retirement as an endless holiday

The idea of retirement as a never-ending holiday is logical, but it’s also misleading.

Holidays offer an opportunity to recharge before returning to our regular lives. Retirement, on the other hand, is a permanent transition into a new phase of life.

Unlike a holiday, where our time off is finite and focused on getting away from it all, retirement can be a complex mix of leisure and the need for continued purpose and engagement.

Often new retirees can feel unprepared for this. While initially they might enjoy escaping from the commute, from workplace politics and meetings about meetings, many new retirees find themselves adrift once the novelty has worn off. Many miss the sense of identity and purpose that a job brings; others mourn the camaraderie of being part of a team.

These unexpected changes can have a detrimental effect on health and wellbeing. One oft quoted statistic says that retired people, especially those in the first year of retirement, are approximately 40% more likely to experience a heart attack or stroke than those who keep working. In addition, almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall.

The phases of retirement

So what’s the solution? Thinking about retirement not as one single event, but as a journey through various phases, each with its own challenges and opportunities, can help you understand the emotions that might lay ahead:

1. The honeymoon phase: This initial phase of retirement is often marked by excitement and a sense of freedom. This phase can last from a few months to a couple of years.
2. Disenchantment: The next phase is often where the idealized vision of retirement collides with reality. Without structure or goals, many retirees find themselves feeling lost or even unhappy during this phase.
3. Reorientation: This stage is crucial for establishing a new sense of purpose and direction. New hobbies, activities, volunteer opportunities, or part-time work can provide you with that sense of accomplishment and fulfilment you’ve been missing.
4. Stability: Finally comes a stage of stability. This is when you’ve adapted to your new lifestyle, established a routine, and fully embraced a balanced mix of leisure and purposeful activities.

Creating an emotional plan

The secret to successfully transitioning into retirement is preparation. Thinking about how you might move through each retirement ‘stage’ can help you anticipate challenges, set realistic expectations, and create a plan that ensures a fulfilling and meaningful retirement.

This plan is designed to sit neatly next to your financial plan:

1. Define your purpose: Consider retirement as the start of a new chapter that offers opportunities for personal development. Have a think about what gives your life meaning, outside of work – what have you always wanted to do, but haven’t had the time or opportunity? Think about how you can incorporate these elements into your retirement lifestyle. Whether it’s volunteering, pursuing hobbies, or spending time with family, having a sense of purpose is vital for emotional wellbeing.
2. Establish routines: While the freedom to do as you please is appealing, having a routine can provide structure and prevent feelings of aimlessness. Think about designing a plan at the start of the week that balances practical chores and activities you love doing.
3. Stay connected: Having strong social ties is essential to emotional wellbeing. Especially for men who, research shows, tend to have fewer social networks and social support compared to women in retirement. Joining clubs or groups and developing relationships with friends and family can help to combat feelings of loneliness and isolation.

While the idea of retirement as an endless holiday is appealing, it’s essential to recognize that it’s very different from two weeks away in the sun. It’s a significant life transition that requires thoughtful planning. But by understanding the different potential phases of retirement and preparing for your emotional needs, you can ensure satisfying retirement journey.

As financial planners, we’re well equipped to help you with this process. We can offer guidance and support to help you navigate the complexities of retirement both financially and emotionally, so you achieve the fulfilling lifestyle you deserve.

To learn more about CapSouth and the services we provide, visit our website at https://capsouthwm.com/what-we-do/or click here to schedule a Discovery Call.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. This material is from an unaffiliated, third-party and is used by permission. Any opinions expressed in the material are those of the author and/or contributors to the material; they are not necessarily the opinions of CapSouth. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results.