Retirement has been morphing for the past fifteen to twenty years from a short period of leisure and rest to a much longer period of healthy, active and often meaningful pursuits. One effect of this change is the great need for pre-retirement planning. A helpful place to begin is by considering how to replace the five benefits of work that have become integral parts of our lives: financial compensation, a purpose, a social network, time management, and status.
Financial compensation is the work benefit that people know they need to replace in some way before they retire. Places of work will often bring in financial experts to discuss the best ways to invest retirement funds. It’s important for people to meet with their financial advisors, tax preparers, and portfolio managers to figure out how to make their money last. More than 80% of workers over 50 expect to keep working in retirement. They may be among the more than 75% of retirees who run the risk of running out of money, or they may want to work to stay healthy, mentally sharp, and engaged in community.
Work manages employees’ time, keeping their lives orderly and in sync with the rest of society. New retirees may try throwing out all their timepieces and calendars after years of being controlled by them, but they’ll soon learn that they’re missing important appointments and a feeling of accomplishment. Without some system of time management, people may become overbooked with endless tasks that they’ve said “yes” to because they now have “free” time. Or they may sit in front of the TV for 50 hours a week and become depressed. A purpose-based schedule with some built in flexibility helps assure retirees that they are living their lives fully and productively.
For many people work provides a purpose, or reason to get up in the morning. When they retire, that need is still there but the purpose has changed. Dr. Richard Leider, author of several books on the topic, describes purpose as a mindset rather than a job or role. He suggests trying the purpose “to grow and serve” until you find one that works for you. Researchers have found that people with a calling live seven years longer than those without one.
All jobs have a status or identity and sense of personal worth. Retirement does not. The power and praise that come from students, employees, or coworkers can be addictive. When planning for retirement, people might ask how they can reinvent themselves to find a new identity and status. Maybe serving on a board, mentoring, training, speaking, or consulting can provide this.
For many people work provides the “automatic relationship generators” that make up their social life. After retirement maintaining friendships with people at work may become a challenge; their schedules and interests are now different, and retirees may become isolated. Researchers in The Longevity Project found that those who had many ties in their social networks and who were engaged with helping others lived the longest. Retirement planning should include an evaluation of current relationships and the exploration of communities outside work that can provide support and happiness.
If you are considering retirement or are already retired and struggling with the adjustment, think about these five needs and how you might fill them when you’re no longer working. Retirement can be a wonderful opportunity to rekindle relationships, keep learning, serve others, work at a new job, and find your highest purpose.