Being ready to retire is about more than just your financial statements. It’s common for people to get caught up in planning and saving, forgetting about the emotional aspects of retirement planning.
Think about it. You’ve spent most of your life in the workforce. When what you do for a living is how you’ve shaped your identity and sense of purpose and belonging, retirement can be surprisingly challenging.
Planning for these emotions and being in tune with how you feel about the prospect of retirement are important factors in successful retirement planning. Here are some indicators that you’re emotionally ready to enter this next season of life.
Recognizing the Signs
If your retirement is on hold because you’re afraid to make the wrong decision, it might be time to factor in your emotions. You might be ready to retire if:
- You’re feeling burnt out at work. Burnout is more than just feeling tired. It’s often experienced as a lack of creativity or drive, apathy or low energy regarding your job and/or coworkers, poor sleep, loss of patience, and even imposter syndrome. This may be due to a lack of control or input in your workplace, poor work-life balance, or simply staying at a job when you know it’s time to move on.
- You frequently wish you had more time and freedom. Has work started taking away from the life you want to live? This is a good indicator that you’re excited to fill your time with new challenges and passions. You may be looking forward to more time babysitting grandkids or traveling while your health permits it. Or, maybe your spouse recently retired and you’re ready to have more time together. It might be the perfect time to take work off of your to-do list.
- Health concerns are impacting your ability to work. Surveys have found that most Americans over 50 plan to retire at 65, but statistically, the average retirement age is 62. Why? Almost half of retirees who had to accelerate their retirement date cited poor health as the reason. Declining health is a common factor in choosing when to retire. If you feel your job is causing or contributing to health concerns, don’t wait to retire until you’re no longer able to enjoy it.
- You’re excited to try something new. If you’ve back-burnered a hobby or a less financially lucrative career that interests you, retirement is the opportunity to give it a shot. Some of the most common reasons for dissatisfaction in retirement are a lack of purpose and insufficient social interactions. Having a passion project that you can’t wait to start is a sign that you’re ready to retire successfully.
- You’re satisfied with your career. Does your resume bring you a sense of accomplishment? If you’ve done everything you set out to do in your field, you can retire confidently without being plagued by “what-ifs.”
Aligning Your Feelings and Your Finances
Once you’ve established that you’re emotionally ready to retire, it’s important to be financially prepared. Luckily, I have an easy-to-use checklist of financial things to consider before retiring.
It’s crucial to anticipate the financial implications of retirement. Wondering if you’ll run out of money or depleting your savings due to a health event can significantly impact your lifestyle, not to mention your satisfaction in retirement. If you’re not sure if your plan has any gaps, or you don’t know how to estimate how much you’ll need for retirement, hiring a financial advisor can ease your mind while helping you cover all the bases. They can assist you in evaluating your finances, developing a budget for retirement, and crafting a plan to secure your financial future after retirement.
Embracing the Next Chapter
Recognizing the emotional signs of retirement readiness is a crucial step toward a fulfilling retirement. It’s about embracing change, preparing financially, and aligning your lifestyle with your personal values and goals. Remember, retirement is not an end, but the beginning of a new, exciting chapter in your life.
When you’re ready to take the next step toward your future, I’m here to help. Schedule a complimentary phone call to explore how I can assist you further and help you live your dream retirement sooner: View Available Times.
Meet the Contributor
Zack Swad, financial planner located in Santa Rosa, CA
Zack Swad is a fee-only financial planner located in Santa Rosa, CA serving clients locally and across the country (virtually).
He specializes in financial planning and retirement planning for people age 50+. As a fee-only, fiduciary, and independent financial advisor, Zack Swad is never paid a commission of any kind, and has a legal obligation to provide unbiased and trustworthy financial advice. He has been in the finance industry for over 11 years. He previously worked for a Fortune 500 Financial Services company, managing a practice of $800 million for 300 clients. Zack then went on to build his own firm, Swad Wealth Management, LLC so he could make a deeper impact in his client’s lives. In his free time, Zack enjoys spending time with his wife Elise, playing board games, piano, and singing.
Zack Swad’s Contact Information:
Email – zack@swadwealth.com
Want to talk to Zack? Schedule a Call
Disclosures:
This commentary on this website reflects the personal opinions, viewpoints and analyses of the Swad Wealth Management, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Swad Wealth Management, LLC or performance returns of any Swad Wealth Management, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this article constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Swad Wealth Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
