ARTICLES  &  REVIEWS

Retirement 101 - Part 1 of 2

London Free Press

 

Most Canadians are happy in retirement and feel in control of their lives. Recent research from a survey of retired and semi-retired Canadians has indicated that they are satisfied with their overall sense of financial and emotional well being. Fifty-five percent of those surveyed experienced a decrease in stress after retiring, and 43 percent found retirement more intellectually stimulating. While 32 percent were concerned about not having enough money to last through retirement, a resounding 68 percent said they were confident they could sustain their comfortable lifestyle.

 

As early retirement becomes more common and people live longer, the next generation of retirees will have even more time and greater opportunity to fulfill their dreams than previous generations.

 

If you are like most people who have worked hard all their lives, you are looking forward to retirement as a time for living your dreams and enjoying newfound freedom. As retirement lasts longer, the media and health experts are drawing more attention to the quality of life after work and the importance of living it to the fullest. That is why retirement is really a misnomer. Your life can be as active as you want it to be. To help you make the most of these years experts suggest viewing your retirement in 10-year phases.

 

The first 10 years of retirement will be different than the second 10 years, and so on as you grow older, says Rhonda Katz, a Toronto based family therapist. Your interests will change over time, dictated by both physical and emotional change.

 

Retirement is a significant period of adjustment, and shouldn’t be underestimated. In fact, 23 percent of survey respondents said that they found the transition to retirement somewhat difficult to very difficult. Perhaps the most dramatic transition to make is the life-long effort of saving money and to start spending it over a comparatively short period of time to support retirement. Most people save all their lives, and then need to relearn that they can become spenders, not savers, in their retirement years.

 

Another part of retirement transition may also be the loss of routine, or the sense of identity in the social contacts that come with the job. This is not unusual in the period immediately following retirement. Of the 25 percent of retirees who sought some form of paid work, 31 percent pursued work to offset the effects of reduced social contact in a change of routine.

 

It is important to take the time before retirement to identify what you enjoy in your life and think of how you can sustain that level of happiness. Retirement in the new millennium doesn’t mean being put out to pasture. There is probably some aspect of your job that you would love to continue doing. There are dreams that you would want to fulfill. There are pursuits that you would want to satisfy. You may be so passionate about your work that you might not want to give it up. You may want to become a consultant in your area. You may want to volunteer and make a contribution, making sure you are emotionally and intellectually stimulated. This would be a benefit for you as well as the organization you are helping.

 

Generally people live longer as they continue to have financial independence, a circle of friends, and purpose in their lives. Next week, we are going to take a close look at staying in the game.