Transition from Working to Retirement

By: HCO

Retirement is an emotional journey; Transition planning can help you prepare

For many of us, retirement is the goal of our life’s work and savings. You’ve worked tirelessly for it and have planned well. While it seems likely you’d be ready to jump in head-first, your feelings as you approach this next phase of life may surprise you. After all, everything changes, from the rhythm of your days to your point of view.

And with change (especially a big change like this) come feelings of worry and anxiety. That’s why a plan for your transition to retirement — one that addresses both your financial and emotional needs — is so important.

If you haven’t already, now’s the time to start working with a financial advisor who can help you set goals and reach them. It will give you the peace of mind and allow you to focus on all the things you want to do in your retirement years.

It’s never too late to give serious time and consideration to how you want to spend your retirement — from tactical ways to budget your spending so you’re comfortable to more inspired ideas for travel and self-actualization. Here’s how.

Understand the 6 phases of retirement

Phase 1: Pre-retirement planning

You’re about five to ten years away from retirement and you’ve been planning and thinking about retirement for your entire career, contributing to social security and employer retirement plans. But now, retirement is no longer a distant daydream — it’s a soon-to-be reality.

Your career has been your life for many years, and it won’t be easy to stop thinking about it unless you have other interests and activities to take its place. Are you going to move, travel, pursue a hobby or learn a new skill? Do you want to be closer to family?

There are many resources today for helping you find a renewed sense of purpose, including the Purposeful app, available to all HealthCONNECT members. But if an app doesn’t feel right to you, a paper and pen will do. You can document your dreams for retirement in a journal, on a vision board or even just on a piece of paper so you can return to them when you find yourself missing the fulfillment of working life.

Phase 2: Celebration

Retirement has finally arrived, and it’s time for you to celebrate this rite of passage with family, friends and colleagues. The days, weeks and months surrounding your final day of work are a time to reflect on the career and life you’ve built.

You can expect to be busy during your final days of work and those immediately after, with parties and dinners to attend, paperwork to finalize and insights you want to pass on to your colleagues.

Phase 3: Freedom

When the parties are over, you’ll probably feel ready to fill your days with everything you felt you were missing at work: travel, being outdoors, spending time with family and leaning into your hobbies. Sometimes referred to as a “retirement honeymoon” this phase can last from a few months to a few years, depending on what you have planned. 

Phase 4: Let down

Eventually the emotional high of your newfound retirement freedom will subside. You may get bored with the activities you thought you’d love, miss your social life at work and find that you aren’t used to spending so much time with your partner. And surprisingly, you may have a hard time adjusting to a life of spending, after saving for so many years.

After the honeymoon phase, it is common for retirees to eventually experience loneliness, disillusionment and a lack of focus. The good news is that this is why you did all of that planning. Knowing that you have the right financial plan in place, as well as a budget that allows for a little fun, will help you move through this tough period with confidence.

Phase 5: Reset

Eventually, you’ll probably find yourself questioning who you are now that work is no longer part of your identity or purpose. These types of fundamental questions about your identity and what you want from life can feel overwhelming and emotional. It helps to know that there are things you can do to find renewed purpose, like:

• Experimenting with new hobbies
• Joining social clubs and interest groups
• Setting exercise goals
• Taking community education classes at colleges
• Volunteering to leverage your career skills and talents

You may be hesitant to put yourself out there in new ways but doing so can help you better understand what activities you enjoy and find satisfying. And that will give you the direction you need.

Phase 6: New normal

As you find more purposeful ways to spend your days in retirement, you will begin to develop a routine that feels more productive and stable. The trick is to give yourself enough flexibility that you can enjoy being spontaneous and take time to care of yourself, without so much free time that you feel aimless.

Embrace each new day

Remember, retirement is an emotional process, and its phases may not have clear beginnings and endings. But you can take comfort knowing that what you’re experiencing is shared by all retirees, and that it’s possible to embrace uncharted waters. It’s your time. Time to pursue all the dreams and goals you didn’t have time for when you were working full-time, and to explore the many new ones you’ll discover along the way.

Still have questions? Our Member Navigators are ready to help. Contact us today!