What are the phases of retirement?
Phase 1: Pre-retirement
Before you retire, you should visualize and plan for your future life. This period can extend anywhere from 5 to 15 years before your actual retirement time. As they approach retirement, many people switch from focusing on their jobs to preparing for their financial security.
However, many people don’t spend enough time planning for their emotional well-being. So, make sure you have fun and find meaning in this stage of your life. In addition to your money, you should think about what will bring you happiness and fulfillment during your transition.
You’ll have a much more pleasant experience if you do that. Budget for emotional planning. You can plan for both your emotional and financial well-being by lifestyle modifications, like downsizing to have more financial freedom and the option to age in place.
Phase 2: Full Retirement
The “honeymoon phase” or “liberation” of retirement can begin one to two years after retirement. Feelings of joy, relief, and independence from the stress and duties of your day-to-day professional life are all part of the liberation phase. Reuniting with family, friends, and romantic partners is common for people in this stage.
They also spend a lot of time on hobbies, travelling, and starting new businesses. Instead of going on a honeymoon, some people choose to settle into a routine right away. They wake up each morning with a plan in place, and they often keep up with the things they did while working. Others go for resting because they feel they need it after years of physically and mentally taxing work.
Phase 3: Disenchantment
Many people experience disappointment and disillusionment when the emotional high of retirement has worn off and the honeymoon phase has passed. After retirement, it may not be as exciting as hoped. And they may come to feel as though something is missing from their life. There may be drawbacks such as boredom, loneliness, and a sense of insignificance. It’s easy to fall into a depression during this stage if you don’t deal with it.
Phase 4: Re-adjustment
Re-adjustment, often seen as the most challenging stage, generally happens when retirees have swiftly completed their retirement to-do list, have lost their sense of purpose, and reevaluate their retirement experience. It is the process of creating a new identity, and it can take time and effort to do.
However, after you’ve established a new identity, you’ll be able to put your working days behind you and enjoy retirement the way it’s supposed to be experienced. The best method to avoid getting stuck in a rut and becoming depressed later in life is to go for something that makes you feel like you have a meaningful purpose. It can be pursuing a passion, volunteering, or adding extra fun stuff to your daily routine.
Phase 5: Reconciling and Consistency
For some people, this last stage of retirement may start up to 15 years after they officially begin their golden years. In this stage, retirees are happy and excited about their new life and will be less depressed and anxious. At this point, retirees have settled into a fulfilling and enjoyable retirement lifestyle.
They place a high value on simplifying their lives and leading stress-free lifestyles. Health problems will be more common at this point, so retirees try to keep their health and independence as strong as possible. They may move to retirement communities where they can live in a place with easy access to healthcare, amenities, activities, and friends. Retirement is a process that most people will go through at some point, regardless of how passionately or how long they experience each phase.
There is no “one-size-fits-all” way about how much retirement income you’ll need for retirement planning. People retire at different ages, with varying savings, and with diverse goals – no two retirement journeys are alike. Apparently, the wisest thing you can do is to make a written retirement plan with the aid of your advisor or CSS Pension Plan Consultant. They can help you design a customized plan that suits your unique goals and circumstances before and during retirement. The retirement income system in Canada is similar to a three-legged stool, where each pillar represents a different source of retirement income.
1. Pre-Retirement: Many employees view retirement as an oncoming burden and a distant dreamland but don’t often think about what it truly means to be retired and what they should do once they reach that goal
2. Retirement day may be the shortest phase in the retirement process, but it is still one of the most emotionally-charged ones
3. Honeymoon Phase: Most people go on a rampage to do everything they previously wanted in their employed days, such as travel, visit relatives, indulge in exciting hobbies, etc.
4. Illumination: This phase hits after the emotional high has worn off, and it hits hard. The feeling of disenchantment is a term that many people compare to this feeling since it gradually takes a toll on an unplanned person.
5. Become more responsible: As newlyweds learn how to live together and handle their lives, retirees will learn how to familiarize themselves with the new circumstances and this unknown territory.
After changing a previously strong identity to address the unknown and its problems, one can now be at peace with their new daily schedule and how they manage social and alone time.
I always put it like this:
1. Pre-retirement or the planning time
2. The big day and the final farewell
3. Honeymoon or when you finally feel free
4. Disenchantment, or as I call it, the so what phase: when you have no idea what to do 🙂
5. Reorientation: when you try to build a brand-new identity