How to prepare for retirement

Are you nearing retirement and not sure how to prepare?

Retirement could be a significant change, especially if you have spent decades working in a full-time job. In the article below, we shall explore some strategies to help you prepare for this life-changing event.

Making financial plans

You need to have a thorough look at your finances and estimate your needs and expenses in retirement. You could visit the Money Helper’s website for advice and resources. Alternatively, an independent financial advisor could answer your financial questions, confirm if your plans are realistic and help you to create a budget. The world of pensions could be a complex area to fully understand. Take a look at the gov.uk website to get familiar with the state pension and carry out further research to enhance your understanding of pensions.

Make lifestyle plans

Many people eagerly look for retirement and the freedom they will experience when not having to go to work. However, it can be a significant change. At work, we build relationships, we have a routine, a structure to fit into, deadlines to meet, and we also get mental stimulation from the work. We feel that we have accomplished something positive by the end of the day, and we make plans for the days and weeks ahead. We may also join work socials, have chats over coffee with colleagues and forge lifelong friendships. Although retirement could bring lots of freedom and time, the initial adjustment to a different lifestyle could be challenging.

Look at some key life areas

Take some time to look at each of the following areas:

• Social life: How are you going to ensure that you regularly meet other people? You could engage in new hobbies or to start volunteering. You could join local clubs, charities or hobby groups to meet new people. If you find that most of your friends are the same age as you, try to make an effort to make friends with people who are of a different age. It could be refreshing to spend time with people who are decades younger than you and experience their enthusiasm and energy. Having conversations with older friends could help you to see things from a wider perspective.
• Intellectual stimulation: Work provides intellectual challenges which we need to solve daily, as well as learning opportunities. How are you going to keep your brain active and engaged in retirement? You could research some college courses and learn new skills. You could even start completing a degree course on a subject you are passionate about. You could learn music, take up a new instrument and go to different musical events. You could write a memoir. It is essential that you keep your mind engaged and that you stay curious about the world.
• Physical activity: It is a good idea to keep active and to engage in regular exercise. You could start practising yoga, tai chi, play table tennis or try something more energetic, such as playing tennis. You could start a new gardening project or take up an allotment. Taking the stairs instead of the elevator could be useful. You could walk to the local shops instead of driving. The options are endless.
• Travel: Are you planning to travel and visit new cultures? Make a list of all the places you have been longing to go to and start ticking off your list.

Make it gradual

You could gradually phase out work by going part-time first. This could ease financial pressures and help you to gradually adjust to retirement. If your employer allows you to do so, you could decrease your hours from full-time to 4 days a week, and even further. Depending on your professional area, you could take up consultancy or freelance roles when you retire from your full-time work. You could engage in mentoring, tutoring or set up a small craft business.

Create an exciting vision

How would you like to spend your years in retirement? What would make your retirement joyful and fun? Do share your aspirations with others. You could also work with a professional to help you make some life plans. Your employer may offer some workshops for those approaching retirement, which could be worth attending.  You could take some time out and look at some key life areas such as your physical and mental health, your creativity, finances, family, friends, activities etc. If you try to visualise your best retirement, what would that look like for you?

Anticipate some challenges

Retirement can bring lots of exciting opportunities, freedom, time and new adventures. However, it may also bring some challenges, such as financial pressures, loss of identity, boredom, and social isolation, just to mention a few. Some people easily adjust to retirement, while others find it a challenging transition. It could be helpful to anticipate some challenges and to come up with some possible strategies to tackle those. As an example, you could create a detailed budget to help you cope with financial challenges. If experiencing loss of identity and anxiety, you might find it helpful to talk to a therapist or a counsellor. You could create a physical well-being plan to help you keep in the best possible physical shape.

Try it out

While you are still employed, you could take a few weeks of annual leave to trial retirement. You could test how you would respond to your new retired lifestyle. You could avoid checking work emails and have less structured days. While trialling retirement, do notice how this makes you feel. Do you miss the productivity, the structure and the conversations with colleagues? If so, you could go with a more gradual transition into retirement and reduce your working hours over time. Retirement can be one of the most exciting life stages. It could allow you to reinvent yourself, to discover new hobbies and to explore new cultures. You will be able to set your own schedule and spend more time focusing on yourself. You could give back to the community and make a real difference to others’ lives.