Retirement today could last 20, 30, or even 40 years. Americans who reach age 65 live an average of 20 more years. The number of people 100 and older is expected to quadruple by 2060, and more than half of retirees stop working at age 56. Regardless of your age or situation, it's important to consider what you want your future to look like so that you can build a plan to make it happen.
The piece most people miss when thinking about retirement
When planning for retirement, what often gets considered first is how much money is needed, and what’s usually left out is the complicated psychological shift that comes with abruptly stopping something you’ve done your whole life. After a lifetime of work, it’s only natural that your job becomes a big part of your identity. Your career shapes your routine, your sense of purpose, and even how you define yourself.
And when you retire, that part of your identity is suddenly gone, and the structure, purpose, and social connections you’ve built over decades can suddenly fall away. It’s a similar transition to when your kids move out after years of parenting. The same question arises for many people in retirement: Who are you now?
Without giving yourself the time and space to think about that question well before the transition and figure out what might replace work or full-time parenting, it’s easy to feel a bit lost. Retirement can turn bittersweet and confusing because, even if you have the time and money to start a new chapter, your habits and mindset haven’t yet caught up. The first step in redefining what retirement will mean for you—and avoiding the toll it might take on your mental health—is to start living the kind of life you want long before you get there.
Why easing into retirement matters
One of the biggest gaps in retirement planning is awareness of the nonfinancial changes you’ll experience. It’s easy to underestimate the psychological shift, the identity change, and lifestyle adjustments of retirement and how to tackle them proactively. Not having a plan for how you’ll adjust to these changes can negatively impact your mental and physical health.
By picturing your future and doing more of the things you want in your life now, retirement will feel like a gradual transition rather than an abrupt change. Think about what new hobbies, routines, learning, or community activities you want to do and how they can fit into your life before you retire.
A future built around you
While it’s true that you have to plan for more years in retirement with life expectancies growing, you also have so many more choices for how to spend your time and what you want your future to look like. This can be both exciting and overwhelming, which is why having the right tools and resources can be essential for turning your desired lifestyle into a financial strategy that supports it.
Working with a financial professional can help you prepare for retirement and track your progress toward your goals. Thinking about questions such as who you are outside of work or what kind of life you want can help you better align your finances with your desired future.
A longer life means a more intentional one
Retirement planning is changing. Today, it’s about more than just saving enough money. It’s also about maintaining healthy habits, creating a lifestyle that nourishes you, and staying in control of how you choose to live your life.
No matter your age, it’s worth taking the time to think about what you want your future to look like. There will be many changes that come with the transition into retirement, whether they’re shifts in your routine, identity, or sense of purpose. Remember, these changes are just as important to plan for as the amount of money you’ll need to live comfortably. With the right plan and mindset in place, you can think of retirement as an exciting new chapter that you get to write, one where direction and purpose are yours to define.
