The downside of not planning for retirement
Many people think they can go to work on the last day and then wake up the next day retired with a full life ahead of them without having thought about what they will do. But is that wise? Do you need a plan? Yes!
Some people might say when asked what they plan to do in retirement, “I know what I don’t plan to do and that is enough.” I have a friend who had a demanding career with a lot of travel and stress, and this was his answer. He was back to work after six months. How many of us know of someone who retired and then “un-retired” returning to the job they left?
Without a plan for your life after retirement, you may find yourself with long days devoid of meaningful activities, boredom, feelings of isolation, loss of identity, and no sense of purpose.
Many people think they will just spend more time on the hobbies they have cultivated over the years. You might have many hobbies, but are they enough to fill your day? On the other hand, maybe you have been busy with your career and have not cultivated hobbies due to work demands which poses another question, what hobbies might you take up in retirement?
Consider your future life and how it is different from your current life. Transitioning from a full-time career to retirement can be difficult. You are separating yourself from the activity of work and connection with co-workers when you retire. Your daily routine will be dramatically different.
Also, we often identify ourselves based on the work we do. Has your identity been defined by your work? I was very used to introducing myself as a CFO for the organization I worked for at the time and might casually talk about the other areas of my life that identified who I am. What will your “elevator pitch” or “cocktail hour introduction” be once you retire? You have likely found a lot of meaning and purpose in the work you do and/or the organization you work for. This is what gets you out of bed every day but what will be that stimulus once you retire?
Work relationships often provide a primary social outlet. Going to an office or even working from home but with numerous Zoom calls provides social interaction. Many work relationships enrich our lives. Retirement can feel isolated without an office and meetings to attend. In my last job as a finance executive, I worked at a university, and we all had lunch at the same time (it was a little like high school). I never had that experience, and it fostered a sense of friendship and camaraderie. Since I retired, I have seen only one of those colleagues consistently and I generally eat lunch alone. This is a big change.
Many of us think of retirement as an endless time to do everything we have not yet done. After all, life spans have grown tremendously with the advent of life-prolonging medical treatment and drugs. However, a very important consideration in retirement is how long you will be healthy enough to do the things you want in retirement. What will you do when you no longer can travel the world or hike all the national parks?