Retirement Malfunction Is Devastating

Retirement is a major life change.  If you enter retirement blindly without any planning, you run the risk of retirement malfunction or retirement breakdown.   If you don’t think your retirement will be a major life change, think again.   And if you don’t think a malfunctioning retirement can be an unhappy one, good luck.

Your World Is About To Change

Your relationships, your tempo and your finances will be different in retirement.

You will lose touch with some of your current inner circle, namely, certain co-workers, business associates, clients.   For some people this leaves an emptiness that is hard to fill.

Your tempo will be less cumbersome and demanding since you will not be keeping a work schedule; instead you will have lots and lots of time.  For some people, too much time can be stressful.

Are You Really Prepared?

Retirement planning is not just about money.  You could have enough money to retire, but if you are mentally unprepared you could run into problems.  Retirement consultants advise individuals preparing for retirement to prepare psychologically as well as financially.

Psychological Preparation For Retirement

  • Your Personal Self-Worth

If your self-worth is based on your career, the adjustment to retirement will be difficult for you.    Some people fear that they will lose their identity after they retire.    If you define yourself by your career, you need to find a new identity before retiring otherwise you will feel lost and your retirement will malfunction.

Retirement is the time to create a new you.   Do volunteer work, take some classes, teach a class, start a new business, focus on long lost hobbies, follow your passions.

  • Your Unstructured Free Time
Time is Money

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Retirement will give you a new-found freedom that you may not be used to…lots of leisure time.   Use that time wisely.   The improper use of unstructured free time could leave you feeling bored and useless; which leads to other problems.   For some people too much leisure time can work against them, it can be more stressful than working.

Arise in the morning at the same time you did during your working years.  Maintain a schedule.   Keep busy.   Find a part-time job to stay connected; maybe do some consulting work in your field.

Financial Preparation For Retirement

  • Know Your Money

Your retirement money has to last as long as you do.   With people living longer, you could need a retirement income for over 30 years.  The best way to guarantee a retirement breakdown is to retire without enough money.

Get as precise with your retirement income need as you possibly can before you retire.   The best way to run your numbers to determine how much money you will need to afford a long retirement is on a retirement calculator or a financial planner.   Many investors approaching retirement use both sources to determine their retirement income needs.