If You Retire Younger, Will You Run Out of Money?

The likelihood of running out of money after retiring at any age varies from person to person. Emergency funds, cash flow, investments and assets all factor into the equation of how comfortably you can retire. Retiring early requires an exceptional amount of planning and discipline in addition to the state of your finances. Passive income from investments and real estate is a significant boost to retiring comfortably at any age.

Despite extensive planning, a reality for many is having to go back to work after retiring after unexpected life-changing events. Adapting to new circumstances is vital, but should not replace an actual retirement plan.

Does Saving Have to Be Miserable?

People often naturally spend less after retirement, sometimes due to the lack of work-related expenses. A good idea is trying out new and better spending habits a year or two before retirement. Spending will fluctuate a lot during retirement. Not everyone needs to cut back spending, but if they do, it does not  have to be entirely unpleasant and probably will not be. Reduced spending and happiness are not mutually exclusive.

Will Your Happiness Last Forever?

Deliberate and diligent efforts at expressing gratitude and finding things to look forward to can be a step to feeling happier. Stats tell us that more than half the people that retire are not happy with their retirement. The Age Wave study identifies a “honeymoon phase” right after retirement characterised by a  year of feelings of euphoria and liberation followed by a period of doubt and finding a new normal. People have to find and develop new routines and new ways of living with and relating to their partners before they feel like they can settle in. All life stage transitions, including retirement, naturally come with a lot of uncertainty. Many people will experience a rollercoaster of emotion, and ask themselves if they are getting everything they want out of their retirement?

Is Retirement Boring?

Retirement does not have to be boring. Some people are more susceptible to feelings of extreme boredom in retirement, but perspective is key. If you are motivated to try new things and committed to staying engaged, it is highly unlikely that you will find themselves in a rut. Finding fulfilling activities to fill your time dulls the threat of a boring retirement.

Loss of Identity in Retirement

Your work life and work persona can often become a significant and inextricable part of your identity which makes it difficult to transition into retirement. How you see your role in your mind determines how susceptible you are to feelings of loss of identity. Finding community and new passions can help you construct a new ‘retirement’ identity, and allow you to achieve things you did not have time for before.

Health in Retirement

Staying motivated to remain mentally and physically healthy becomes more feasible for many people during retirement than it may have been during their pre-retirement years. Additionally, work-related stress and anxiety disorders, and their psychosomatic manifestations are not as apparent as they may be during an active work life.

Living a Happier Life and the Science of Happiness

Make someone’s day a little bit better by paying for a meal or coffee, giving a gift unsolicited and make yourself happy.