Retiring isn’t just a financial adjustment: it’s also a major social and psychological adjustment.

We spend most of our lives at work, so it should come as no surprise that many people do most of their socialising in the workplace. A lot of our social connections are made and nurtured in the workplace and at work functions. In addition to this we identify with our profession or occupation. It forms part of who we are and after retirement, we miss the feeling of being a part of something, having a purpose. Even though many look forward to retirement, they underestimate the impacts of losing part of their social life and even their identity. As a result, many retirees suffer from boredom, loneliness and depression.

In a 2022 study by National Seniors Australia, 17% of retirees said they had gone back to work, and an additional 19% said they were considering it. While many were motivated by financial reasons, that wasn’t the only cause:

• 19% said they wanted to remain physically and mentally active
• 13% said they wanted to contribute to society
• 13% said they missed socialising
• 12% said they enjoyed their job and didn’t want to leave

This is actually one of the biggest challenges financial advisers help their clients deal with. 

“We live in a society that’s focused on work and making money,” says Tribel adviser Simon Little. “As a result, so many people aren’t prepared for retirement. I try to help my clients plan not just for the financial side of retirement, but the social and psychological side as well.”

With that in mind, here are some suggestions from Tribel financial adviser Simon Little for easing into retirement.

Reduce your hours

“Going from 40 to 0 working hours per week is a dramatic change many people simply don’t know how to deal with,” says Simon Little. “Transitioning gradually can be a much gentler way to ease into retired life.”

Talk to your HR department about either scaling down to part-time work or creating a bridge job with a reduced number of hours and/or less stressful work. This way, you can slowly reduce your hours until you feel ready for full retirement.

This may also be a good idea if you want to top off your retirement savings before leaving the workforce completely, as you can take advantage of a Transition to Retirement Income Stream (TRIS). With a TRIS, your employer still makes contributions to your super, but at the same time you can access the money in your super (through regular income payments) to supplement your reduced income.

Exercise

“The first few years of retirement can heavily impact the rest of your life, which is why it’s so important to set healthy habits right away,” says Simon Little.

Now that the regular structure of your life has changed, it may be hard to keep up your exercise habits. But you don’t have to make exercising harder than it needs to be. Even just going for a daily walk can have long-term benefits on your mental and physical health. You could also go biking, do yoga, or work in the yard.

Not only does this keep your body healthy, it also keeps your brain active and produces endorphins that can help combat the depression and lack of purpose many retirees feel.

Take up a hobby

A 16-country study found that hobbies in retirement lead to better mental health, higher life expectancy and greater overall happiness. Whether it’s enrolling in a class to learn something new, taking up a hobby you enjoy or simply reading all those books on your shelf, a hobby can help stimulate your brain and keep you mentally active.

If you’re struggling to think of a retirement hobby, our financial advisers recommend:

• Art (such as painting, drawing or sculpting with clay)
• Cooking
• Gardening
• Hiking
• Reading
• Writing
• Learning a language
• Playing a sport
• Playing music

Find a volunteer opportunity

“Many of my clients are passionate, driven individuals who struggle with the sense of isolation and purposelessness retirement brings,” says Simon Little.

If you find yourself missing the social aspect of work and that sense of being a part of something, you may enjoy volunteering. Get in touch with a local charity or non-profit and take on a regular shift. Whatever you’re interested in or passionate about, chances are you’ll be able to find a volunteer opportunity that suits you.

Here are some ideas of organisations that can almost always use volunteers:

• Food pantries
• Humane societies
• Historical organisations
• Homeless shelters
• Community theatres
• After-school programs
• Environmental groups
• Community gardens

 Make plans

“There’s a myth that after you stop working, your life is essentially over,” says Simon Little. “That couldn’t be farther from the truth. Now that you’re no longer working, you’re free to do whatever you want. Embrace that.”

If you find yourself dreading retirement, our advisers recommend giving yourself something to look forward to: whether that’s travelling the world, spending more time with your family or checking off the items on your bucket list.

Talk to your friends and family about taking a vacation together, having a regular visiting schedule or getting together for weekly social events. Putting these plans in place before you retire can help you feel more excited about the years ahead.

Plan financially for the lifestyle you want

Of course, a major component of retirement planning is the financial side. In order to enjoy a comfortable, meaningful retirement, you’ll need to be able to sustain your hobbies and plans with a solid income stream.

Talk to your partner and/or financial adviser about the lifestyle you want in retirement. Be sure to consider things like where you want to live, whether you want to travel and what medical expenses you might need to prepare for.

Retirement is a journey, and planning for each stage of that journey is the surest way to enjoy your golden years.

If you’d like to start discussing what your retirement might look like, contact one of our financial advisers.