Retirement

Overview
Retirement is a reward for a lifetime of social contribution. It is a time for leisure, individualism, self-fulfillment and any plans you may have been setting aside. With increasing life expectancies, many people reach retirement and realize that a significant amount of their lives still lies ahead. Understanding that retirement will usher in many changes in your life, both positive and negative, can help you make the adjustment.

Background
In the United States, the practice of mandatory retirement began in the 1960s. This policy required all employees to retire at age 65 and encouraged some to retire even earlier. In the 1970s, the mandatory retirement age was changed to 70 despite objections from business leaders, unions and representatives from the academic world. In 1973, the mandatory retirement age for federal workers was abolished. It was eliminated for college professors in 1993.
Over the past 20 years, the average age of retirement has dropped in many countries. Today, 60 is the official age at which American workers can draw full pensions. Reduced pensions can be drawn even earlier.


Key factors influencing retirement decisions
A variety of factors often have an impact on retirement decisions.
Health: One of the strongest predictors for the timing of retirement is health. Understandably, people in poor health are likely to retire earlier than people in good health. Very few people become ill simply because they retire, however. In fact, retirement itself has little direct effect on overall health.

Age: The most common retirement age is 62 for both men and women. Although more than half of all people in the paid workforce retire before age 65, others continue to work past the typical retirement age. Mandatory retirement ages also have an influence, but most retired adults report they retired out of personal choice, not mandate.

Children at home: People who have children at home are less likely to retire than those whose children are on their own.

Pension programs or other retirement resources: The availability of financial support during retirement influences both standard and early retirements. People who depend on Social Security for retirement income typically retire later than those who have additional sources of retirement income.

Work characteristics: People who are self-employed or highly committed to their work typically retire later than those who work for others and are less committed to their jobs. Ill health and a good pension program are significant pushes toward retirement for people who find gratification in their work. Those in low-level repetitive jobs are likely to retire as soon as they're eligible to receive a pension. Sometimes, people retire from a regular or lifelong occupation and take a bridge job -- a new type of job, often part-time, in a completely different line of work.

Culture: How retirement is typically perceived in your culture may affect your perception of it as well.


Retirement phases
Retirement often occurs in phases.
Preretirement: You're preparing for retirement, whether it's months or years down the road or in the near future.
Honeymoon: Immediately after you retire, you may have a sense of euphoria that's partly the result of your newfound freedom. It can be a busy period, filled with many hobbies and activities.
Disenchantment: Life may begin to slow down. An emotional letdown or depression may occur.
Reorientation: You may explore new avenues of involvement with loved ones, friends or the community. During this phase, you might offer your services to others through volunteer organizations.
Stability: You might feel a sense of mastery of the retirement role.
Termination: You may experience this phase if you become disabled or you decide to return to full-time work.

Common residence changes during retirement
A variety of moves are common during retirement. An amenity move, which typically happens near the time of retirement, may place retirees in a warmer climate farther away from their family. This type of move is especially common for married retirees who are healthy and have adequate retirement income. Some older adults adopt a pattern of seasonal migration in which they spend the winter in a warmer climate and the summer at home, nearer to family. In mid to late old age, some retirees engage in compensatory or kinship migration. This time, the move is usually to be closer to a family member who can provide regular assistance. Finally, institutional migration may be a move to a nursing home, elder hostel or other assisted-living environment. This move usually occurs late in life.

Characteristics
As you adjust to retirement, you may experience vague or generalized stress-related physical complaints, as well as fatigue, nausea, aches and pains, or poor sleep.
Psychologically, you may be able to focus on identifying your personal interests and feel a sense of personal freedom and status apart from your work life. Socially, you may become more involved in social activities and find they provide a sense of accomplishment. If you have trouble adjusting to retirement, you may feel anxious, useless, or unable to imagine future activities or conditions. You might withdraw from usual activities or feel isolated.

Sometimes retirement can be more than you can handle at the time. Symptoms such as sleep disturbances, decreased energy, appetite changes, anxiety, depression, inability to concentrate or hopelessness may warrant further evaluation by a health care professional.

As with all physical symptoms, consult your medical doctor to rule out a medical condition. If these or any other symptoms cause you distress that doesn't seem to improve, seek additional help and support from a mental health care professional.


Coping strategies
Retirement planning includes more than financial planning. It's also important to prepare emotionally, socially and physically.
Understand the psychological adjustments. You may face an increased risk of depression during retirement if you derive your self-esteem from what you are and do, rather than who you are. If your identity is strongly linked to your work role, retirement may cause a drop in self-esteem. To balance these risks, look to personal strengths or other internal factors to build your self-esteem before you retire.

The prediction of life satisfaction in later adulthood is related to satisfaction in earlier adulthood, not retirement status. For most people, retirement is not a stressful life event. Retirees who have poor health, poor family finances or were forced into mandatory retirement when they would have preferred to continue working are the most likely to have difficulty adjusting to retirement. If you perceive retirement as a negative experience, it may help to think of this time in your life as retiring to something, not from something. Also anticipate the stressors that occur with any change. Openly express your feelings about retirement, and give yourself and others time to adjust.

Wrap up things at work. Review your retirement benefits so you fully understand what to expect. If applicable, consider how to notify clients, customers and co-workers of your pending retirement.

Enjoy your newfound freedom. This is the time to indulge yourself in interests or activities you haven't had time for in the past. You may choose to travel, continue your education, or study something new. Perhaps you'll volunteer your time at a community organization or favorite charity. You can even try new activities or hobbies. Plan to maintain your independence and identify your own view of retirement, however. Just because your friends or neighbors spend their retirement golfing doesn't mean you must do the same -- after all, it's your life and your retirement!

Connect with your friends and loved ones. People who maintain a support network of friends and loved ones often adjust well to retirement. Often, retirement is a good time to build or strengthen family ties. You may want to develop new interests that involve social activity or search for other meaningful reference groups as well. If you have a significant other, know that spending more time together may cause strain on the relationship. However, it can also provide an opportunity to pursue mutual interests and discover new things together. Consider concerts, lectures, or a new landscaping or home-improvement project. You may want to enter retirement as a team and renegotiate your traditional roles and responsibilities. For example, you might decide to pick up duties your spouse previously handled, such as balancing the checkbook or doing the grocery shopping.

Consider the financial aspects of retirement. For many people, the biggest adjustment to retirement is financial. After years of a regular paycheck, retirees often depend on a variety of sources of income, such as Social Security, pension plans, savings account or other assets. Problems with retirement are often associated with insufficient family finances. Depending on your retirement nest egg and current economic conditions, your income may be more or less than anticipated. You may have to change your lifestyle. Be sure to only spend within your means. You may even want to retire gradually, such as working part time or doing consulting work. Some retirees rely on public assistance, such as Supplemental Security Income (SSI) or food stamps. To secure your financial future, concentrate on solid financial planning as early as possible.

Take good care of yourself. To keep your body and spirit in shape, eat healthfully and follow a health and well-being program. Your doctor can also help you create a diet and exercise program that's right for you. Identify and expect normal age-related changes, but plan to maintain your independence. If you're unhappy, ask yourself how you would like things to be different and set some realistic goals. Some people confuse retirement as the cause of unhappiness, when in reality they're simply unhappy with their lives -- retired or not.

Explore other options. You may want to take a retirement planning course. Remember, retirement planning extends beyond simple financial planning to include discovering new interests and preparing for change.


Summary
As you near retirement, find time to relax and constructively process your plans. Remember, retirement doesn't mean your life is ending -- it's just beginning a new chapter. Once you adjust, you may see many new and exciting opportunities. Retirement may even give you a sense of freedom you've never experienced before. Above all, enjoy it! Consider retirement your reward for a job well done. Take your time to relax and enjoy life. Before long, you may feel that retirement is the best of what life has to offer.