As the baby boomers prepare for retirement, many worry about having the financial
resources needed to live a comfortable lifestyle. The recent turmoil in the financial
markets, the burst of the real estate bubble and the credit crisis have everyone
unnerved. On top of that there is worry about a recession coupled with skyrocketing
gasoline and commodity prices. Traditionally, those nearing retirement have focused
primarily on the financial aspects. In today’s chaotic economy, the emphasis on financial
needs is probably even greater.
Yet financial preparation, as important as it is, is but one aspect you need to plan for as
retirement nears. According to an article published on the American Psychological
Association (APA) web site: “You also have to plan in terms of developing other interests
and making a gradual transition in terms of where you derive your self esteem.”
Nancy K. Schlossberg, EdD, author of Retire Smart, Retire Happy: Finding Your true
Path in Life, published by the APA says there are three basic areas of change at
retirement:
1. Change in identity - when people retire, they often have to change how they define
themselves.
2. Change in relationships – social interactions at work will be replaced with new
relations outside of work. Your spouse may find it difficult having you around more.
Close work friends may have years until retirement and be unable to spend time with
you.
3. Change in Purpose – the office no longer needs you. You need to develop a new
sense of worth through new activities.
You can see that you need to give serious thought to what you will do when you retire.
Many retirees we know claim that now that they are retired they are so busy they
wonder how they ever managed to get anything done around the home when they were
still working. Yet others have few, if any hobbies. Their work is their life.
One of our clients recently expressed how she felt immediately after retiring. She said:
“I was like a fat lady who was let out of her girdle and couldn’t get it all back in.”
We all have known people who became ill soon after retiring and in some instances
died. We wonder if this is caused in some cases by the combination of the drastic
lifestyle change coupled with the added stress of no longer receiving a paycheck each
week.
Before retiring, give some thought to what things you are passionate about. What have
you always wanted to do but never had the time? Read some books or take a course or
two in those areas of interest. Perhaps you’ll be able to start a business or work part
time doing something you truly love to do. This will help you adjust to the loss of self
esteem from your job and at the same time, perhaps, generate some extra income to
lessen the worry about running out of money.
Give consideration to volunteer work and take the opportunity of having more time to
lose a few pounds. According to the APA, “A balanced portfolio of activities is important
–travel, hobbies, volunteer work, exercise, continuing education, are all activities that
retirees find rewarding. “
Whatever you do, don’t wait until six weeks before retiring to plan for the non-financial
aspects. With corporate buyouts so very common, a hobby you love just may become
your next job when your employer suddenly downsizes and you are forced to retire early.
David C. Patterson, CFP® and Erin Patterson-Preston, CFP® are the owners of
Patterson Advisors, LLC, a fee-for-service-only financial advisory firm. Patterson
Advisors, LLC is a Registered Investment Advisor, registered with the State of Michigan,
helping clients in Waterford, Clarkston and Royal Oak, Michigan as well as other
Oakland County, Michigan communities . Visit www.pattersonadvisorsllc.com for more
information or call 248-674-2108.
Published in the Oakland Insider, June, 2008
Are You Psychologically Prepared for Retirement?
By David Patterson and Erin Preston (formerly Patterson)