The more I hear from retirees, the more I realize that the financial side of exiting the work force is just half the battle. The rest is a mental adjustment, particularly for career-focused Type A people.
Yet more evidence of the importance of preparing emotionally for retirement as much as financially can be found in a post on Financial Independence Hub headlined, Why 28 per cent of retirees are depressed. The author, a retirement blogger named Fritz Gilbert, talks about a conversation he had with a retired professional basketball player.
“When he retired from basketball, he faced the same reality most of us face when we retire,” Mr. Gilbert writes. “We aren’t as special as we thought we were.”
At work, we’re respected team members and leaders with expertise built over our careers. In retirement, we have to redefine ourselves and our worth. It’s this adjustment that can lead to feelings of depression.
Mr. Gilbert’s post includes suggestions for avoiding or dealing with depression in retirement. The common theme is applying the equivalent of financing planning to the way you’ll live your life. A suggestion that jumped out at me, maybe because I’m Type A, is to develop a schedule or routine.
One of the joys of retirement is not having to be on the clock every working day. But thinking about some of the things you’ll do during the week and the people you’ll see can help give you a sense of purpose.
Other recommendations supplied by Mr. Gilbert include volunteering, staying physically active and even working, if that makes you happy. What you won’t find on this list is anything about travelling more, or buying things. You have to build happiness into everyday life.
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Rob’s personal finance reading list
Travel hacks: The master class
A long list of tips for air travel, including a bunch that can save you time and money. Some wacky ideas here, but some great ones as well. Have you heard of SeatGuru, an app to help you find the best seats on whatever type of plane you’re flying? Now for some thoughts on whether it’s worth it to buy a day pass for an airport lounge if you have a long layover, and on how travellers are reconsidering summer visits to Europe as a result of the scorching hot weather there.
The pressure to pack lightly
A humorous take on the tyranny of packing lightly for a flight. Squeeze everything into a small suitcase, and then queue up for “boarding processes so stressful they can feel like the wildebeest stampede from The Lion King.” Now for a list of credit cards that cover various airline fees, including those for checking a bag, as part of their customer rewards.
He imagined a graceful death for his dad
A powerful, honest narrative from a man about the regrets and guilt he felt after watching his much-loved father slowly succumb to dementia.
What’s your money motto?
A blog post about the idea of distilling your philosophy about money and investing into a phrase. Might help motivate you in managing saving and spending.
Ask Rob
Q: Should people who are about to retire buy extended health and dental insurance through their defined benefit pension plans, or pass? I have this option but it’s pricey at over $200 per month for my husband and I. We’re relatively healthy. Is it better to pay as we go?
A: Here’s something I wrote recently on planning for the cost of medical and dental insurance in retirement. There’s a mention of workplace health plans available to retirees.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, explainers, guides and charts
A collection of printable forms you can use for budgeting, saving, tackling debt and setting financial goals.
The Money-Free Zone
You’ll thank me for this one: Billy Stewart’s R&B version of Summertime. His stuttering, trilling vocal style and a great band make this a classic. For a slow burn, try the Janice Joplin take.
Watch this
A shrinkflation reel – outrageous examples of companies giving you less for the dollar.
From the Twitterverse
An on-the-money tweet about avoiding investing scammers.
ICYMI
- How to reduce mortgage payment shock at renewal: Plan early
- What is a better long term investment – stocks and bonds or real estate?
- Estate planning starts with the five Ds
More Rob Carrick and money coverage
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