5 Tips to Successfully Transition to Retirement (2022)

5 Tips to Successfully Transition to Retirement (1)
(Video) 5 Tips for Managing Your Money in the Transition to Retirement

When it comes to retirement planning, many people focus almost entirely on financial planning. After all, retirement signals the end of your wage-earning years, so the primary concern tends to be making sure you’ll be able to take care of your needs and maintain your lifestyle without running out of money. But what you might not realize now is that it’s just as important to plan for a happy and healthy retirement, no matter the size of your nest egg.

Declining happiness and rapidly declining health in retirement is more common than you might think. Looking ahead to stress-free days of non-stop vacation is simply an overly romanticized view of the coming years that can quickly turn to disappointment if you don’t put some careful thought and planning into how you will spend your time and how you will face the realities of aging.

Here are five tips for a happy, healthy retirement.

1. Take care of your physical health.

As the old saying goes, health is wealth. Money means nothing if we don’t have our health, and if we have health problems, it can be a drain on our finances. We can’t always control what happens to us healthwise, but we can do our best to take care of our physical health.

Your best bet is to stay fit and active throughout your lifetime and to have the recommended regular check-ups with your healthcare providers. The standard advice still goes a long way: avoid smoking, drink in moderation, cut the junk food, get plenty of quality sleep, move your body, and follow your doctor’s orders. Keep in mind that you only get one body, so you better treat it well. Taking care of your physical health is key to maintaining a high quality of life well into your golden years.

(Video) 5 Ways to Discover Your New Path in Transition to Retirement

As you enter retirement, be sure to find ways to stay active that you enjoy, and don’t be afraid to break out of your comfort zone. Golfing, swimming, hiking, gardening, yoga, tennis, boating, and much more can be enjoyed at any age.

2. Support your mental health.

After retirement, depression and other mental health issues are more common than you might think. Hanging up your work hat for the final time is a dramatic shift in your identity, routine, and lifestyle. Many people find themselves struggling once they are no longer working at a daily job that had provided them with a set routine, a place to go, a reason to connect with others, and even a sense of purpose.

Even if you don’t like your job and can’t wait to move on, it has likely become central to how you live your life. When you leave the workplace behind, it can be difficult to regain your footing and figure out who you are without your job and what you should be doing instead. As a result, many retirees report feeling bored, useless, and ungrounded; some even find that idle time allows room for old traumas, negative emotions, and buried resentment to resurface.

Knowing ahead of time that retirees are vulnerable to mental health concerns is key to prevention. As you plan financially, make a plan for supporting your mental health as well—stay active, take care of yourself, find hobbies you enjoy, get out in nature, connect with others, develop a meditation or prayer practice, work with a good therapist, and don’t shy away from taking medication for depression or anxiety if your doctor recommends it.

3. Stay creative and productive.

As humans, we are wired to be creative and productive creatures. Keeping up with the hectic pace of productivity that modern life demands may go against our nature, but we all have a deep desire to make things, do things, enjoy the process, and admire our work. This looks different for everyone, and it’s an opportunity for you to explore what matters to you.

(Video) How to Successfully Transition Into Retirement

Some people pick up a paintbrush, knitting needles, or gardening tools, while other people set out to write the great American novel, take up woodworking, learn to play the guitar, bake the world's-best apple pie, perfect the family budget spreadsheet, or become a top-notch grillmaster of bragworthy brisket. It doesn’t matter what it is; as long as it’s something you truly want to do, it can be fulfilling and satisfying.

Tap into your creativity, and the possibilities are endless. Make no apologies for spending hours honing your craft beer or tweaking your memoir, even if your creations are never shared with another person. You’ve earned the right to indulge in your creative pursuits, and you’ll never run out of things to do.

4. Maintain your connection with people.

One of the most difficult aspects of retirement is that it can be socially isolating and lonely. You might be surprised by how much you miss interacting with the array of coworkers, clients, employees, students, vendors, or customers you talked to every day for decades. Maybe your spouse and friends are still working or set in their own routine. Perhaps you imagine spending tons of time with your kids and grandkids but realize they have busy lives of their own.

What you need is a plan to get out and connect with other people often. Being involved in social or sporting clubs, getting active in your church or place of worship, attending continuing education classes, keeping regularly scheduled time to meet up with friends on your calendar, and planning family dinners and vacations are great ways to stay connected and plugged in.

The point is, you have to be intentional about maintaining connection. It no longer happens by default, so you’ll need to make an effort, and it will pay off. We all need each other, and science shows that isolation is bad for your health.

(Video) Transitioning to Retirement Part 1 (5 to 10 years before retirement)

5. Find your purpose.

When you reach retirement, not only have you stepped away from your career, but you’ve most likely become an empty nester too. With a lifetime of responsibility and meaning behind you, it’s important to remember that you still have a purpose and a great deal more to give. One of the best parts of retirement is that you have the opportunity to focus on what matters to you.

Your purpose at this stage might be to be a caregiver of some kind. Perhaps you’ll become more active in the life of your grandchildren and ease some of the burden of childrearing for your kids. You may want to help out older family members or friends who are having health challenges get to their doctor’s appointments, coordinate home repairs, or put dinner on the table. That might not sound fun now, but it can be truly fulfilling when the time comes.

Your purpose could be to give back to your community. Maybe you can take on a volunteer leadership role at a nonprofit, join a board of directors, become a mentor in your former profession’s organization or university’s alumni association, or focus on philanthropic giving and creating a legacy.

Your purpose could be anything; don’t miss out on your opportunity to make a difference in your own way in your older age.

Your Happy Healthy Retirement

Financial planning is the bedrock of a happy, healthy retirement. Without sufficient money, retirement can be an incredibly stressful time but don’t forget to plan for your overall well-being, too. Sure, you can kick back and watch sports for hours and sip cocktails at the beach, but if you really want to be happy, healthy, experience longevity, and enjoy the fruits of your labor, you’re going to need a better plan.

(Video) The Psychology Of Retirement: Transitioning Effectively

Brendan is the Managing Director for Waymark Wealth Management. He has extensive experience in comprehensive wealth management. His focus includes retirement planning, behavioral finance, investment portfolio construction, education funding, insurance & risk management, taxes, charitable giving, and estate planning. Brendan has an ability to take clients' complex visions and distill them down to simple action plans, helping them move from where they are today to where they want to be tomorrow.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.


What are 5 key tips for retirement savings? ›

Retirement advice from real retirees
  • Monitor your investments in pre-retirement. Money needed 5-10 years into retirement is most vulnerable, so avoid overspending. ...
  • Plan for inflation as a fact of life. ...
  • Talk with your spouse or significant other about retirement spending. ...
  • Focus on physical health.

What are 5 factors when planning for retirement? ›

Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning. Start planning for retirement as soon as you can to take advantage of the power of compounding.

What are the 5 phases of retirement? ›

The journey through the 5 stages of retirement
  • Stage 1: Pre-retirement.
  • Stage 2: The honeymoon phase.
  • Stage 3: Disenchantment.
  • Stage 4: Re-orientation and finding yourself.
  • Stage 5: Stability.

What is the most important thing in retirement? ›

According to an AgeWave study, more than 80% of today's retirees say health is the most important ingredient for a happy retirement, meaning that the majority value good health even over financial security.

What are the most important things to have in retirement? ›

It's a good idea to get expert advice when it comes to:
  • Transition to retirement strategies.
  • Budgeting in retirement.
  • Tax minimisation strategies.
  • Investing your pension.
  • Age Pension and other social security entitlements.
  • Estate planning.

What is transition to retirement example? ›

An example of a Transition to Retirement (TTR) Pension is simple. A TTR pension is commenced with some or all of your superannuation balance while you are still working and you are required to draw an income of between 4% and 10% of the account balance, as calculated on 1 July of each year.

What should you not do when you retire? ›

Plan for healthcare costs in retirement, pay off debt and delay Social Security until age 70 to help maximize your benefits.
  1. Quitting Your Job. ...
  2. Not Saving Now. ...
  3. Not Having a Financial Plan. ...
  4. Not Maxing out a Company Match. ...
  5. Investing Unwisely. ...
  6. Not Rebalancing Your Portfolio. ...
  7. Poor Tax Planning. ...
  8. Cashing out Savings.

What are the 4 pillars of retirement? ›

The four pillars of the new retirement are health, family, purpose, and finances. They are inextricably interconnected, and each is essential to thrive in the new retirement. The new retirement is becoming an exciting and fulfilling stage of life—with new choices, new freedoms, and new challenges.

What are the top 5 challenges you will face in retirement? ›

  • Outliving your money in retirement. The biggest threat retirees face is outliving their retirement savings, according to Hou's research. ...
  • Higher-than-expected medical costs. ...
  • Stock market volatility. ...
  • Family expenses. ...
  • Social Security policy changes.
8 Jul 2022

How do I ensure I have enough retirement? ›

10 tips to help you boost your retirement savings — whatever your age
  1. Focus on starting today. ...
  2. Contribute to your 401(k) account. ...
  3. Meet your employer's match. ...
  4. Open an IRA. ...
  5. Take advantage of catch-up contributions if you're age 50 or older. ...
  6. Automate your savings. ...
  7. Rein in spending. ...
  8. Set a goal.

What are the 3 goals of retirement? ›

Some common retirement goals include: Set a retirement budget. Plan a milestone event. Prioritize wellness.

What is the best first step to prepare for retirement? ›

Saving Matters!
  1. Start saving, keep saving, and stick to.
  2. Know your retirement needs. ...
  3. Contribute to your employer's retirement.
  4. Learn about your employer's pension plan. ...
  5. Consider basic investment principles. ...
  6. Don't touch your retirement savings. ...
  7. Ask your employer to start a plan. ...
  8. Put money into an Individual Retirement.

What do retired people do all day? ›

Retirees enjoy over seven hours of leisure time per day, according to 2019 data from the American Time Use Survey. They use their newfound free time in a variety of ways, including taking up new hobbies, relaxing at home, watching TV and lingering over daily activities. Many retirees also continue to work or volunteer.

What is the hardest thing about retirement? ›

For many people, the hardest tasks in retirement are establishing a structure and personal relationships to replace what they had in their work environments. Work dictated the structure of their days and weeks for decades. In retirement, that structure has to be replaced.

What are the top 10 things people do when they retire? ›

Things to do in retirement – 25 ideas to inspire you
  • #1 Declutter your home and free your mind. ...
  • #2 Explore your local area. ...
  • #3 Become a tour guide. ...
  • #4 Work for wildlife. ...
  • #5 Research your family tree. ...
  • #6 Dress the part. ...
  • #7 Get musical. ...
  • #8 Learn to dance.
3 Nov 2022

What makes people happiest in retirement? ›

Older people, in particular, may enjoy a greater sense of well-being because of the availability of Social Security and private pension benefits that provide them with income after they retire. For many retirees, pensions provide a significant percentage of income in retirement.

What should you spend first in retirement? ›

Traditionally, tax professionals suggest withdrawing first from taxable accounts, then tax-deferred accounts, and finally Roth accounts where withdrawals are tax-free. The goal is to allow tax-deferred assets to grow longer and faster.

What is the 90 10 Rule of retirement? ›

The 90/10 investing strategy for retirement savings involves allocating 90% of one's investment capital in low-cost S&P 500 index funds and the remaining 10% in short-term government bonds.

Do you live longer if you retire early? ›

The finding echoes a few others, the New York Times reports: “An analysis in the United States found about seven years of retirement can be as good for health as reducing the chance of getting a serious disease (like diabetes or heart conditions) by 20 percent.

Is retiring Early worth it? ›

Financially speaking, it's generally far safer and far smarter to retire later. According to a Boston College Center for Retirement Research report, half of today's working families risk a major living standard decline in retirement. The share would drop by roughly 50% if all workers were to retire two years later.

What is the bucket rule for retirement? ›

The retirement bucket strategy divides your retirement income into three buckets: short-term needs, mid-term needs and long-term needs. The goal is to have your income needs always met, regardless of market volatility.

What is the best age to retire? ›

66-67 – Depending on your year of birth, your Full Retirement Age (FRA) will be between 66 and 67. For example, if you were born in 1955, your FRA is 66 years and 2 months while if your birth year was 1959, your FRA is 66 years and 10 months. For those born in 1960 or later, full retirement age is 67.

What are the 7 crucial mistakes of retirement planning? ›

7 Crucial Retirement Planning Mistakes
  • Taking Social Security Before 70.
  • Borrowing Against Your Retirement (Unless It's an Emergency)
  • Tapping Into Your 401(k) or IRA Before RMDs.
  • Tapping Into Your Roth Before Exhausting Other Options.
  • Hiring an Advisor Who Is Not a Fiduciary.

What is the 80 rule for retirement? ›

What is the Rule of 80? This provision creates a so-called Rule of 80, a new definition of Normal Retirement for members of the Hybrid Defined Benefit Component. This allows members to claim a full, unreduced pension benefit if their combined age and years of service equal at least 80, beginning at age 50.

What are the golden years of retirement? ›

Generally speaking, the golden years begin at age 65 and last until age 80 and beyond. However, some experts question whether “golden years” still belongs in our vocabulary because the time span and definition of retirement have changed over the past half-century. “Older Americans live longer now than they did in 1960.

Where should I be financially at 55? ›

Experts say to have at least seven times your salary saved at age 55. That means if you make $55,000 a year, you should have at least $385,000 saved for retirement.

What is a retirement strategy? ›

Retirement planning refers to financial strategies of saving, investments, and ultimately distributing money meant to sustain oneself during retirement. Many popular investment vehicles, such as individual retirement accounts and 401(k)s, allow retirement savers to grow their money with certain tax advantages.

What is the most common mistake that retirees make when choosing where to live? ›

1. Not factoring in moving costs. One of the costly retirement mistakes people make when picking their forever home is failing to fully plan out the expenses involved in a big move. Although the destination itself might be affordable, a cross-country move may not.

What should I do 6 months before retirement? ›

6 Things to Do If You're Nearing Retirement
  1. #1: Find out where you stand.
  2. #2: Boost your savings, if you need to.
  3. #3: Plan ahead for Social Security.
  4. #4: Consider tax-smart strategies now.
  5. #5: Get a head start on future health care costs.
  6. #6: Start thinking about retirement income.
1 Jun 2022

What is a good monthly retirement income? ›

A good retirement income is about 80% of your pre-retirement income before leaving the workforce. For example, if your pre-retirement income is $5,000 you should aim to have a $4,000 retirement income.

What should I do 12 months before retirement? ›

You'll be retired by this time next year. Here's what to do now
  1. Avoid the headlines and maintain perspective.
  2. Seek expert advice to cover your bases.
  3. Stress-test your financial plan.
15 Jul 2022

What should I know before retiring early? ›

Here are a few things to consider before you decide to retire early.
  • Health care is expensive. ...
  • Tapping your nest egg early can be costly. ...
  • You sacrifice the power of compounding interest. ...
  • You may have a long, long life ahead of you. ...
  • You'll spend more money than you think. ...
  • Housing expenses don't retire when you do.
17 Jun 2022

What is a retired person called? ›

noun. re·​tir·​ee ri-ˌtī-ˈrē : a person who has retired from a working or professional career.

Do most people get bored in retirement? ›

By far, the most common complaint about retirement is boredom and not having anything to do.

What are the 3 buckets for money for retirement? ›

Divide your retirement portfolio into three buckets. The first bucket is used to fund day-to-day living expenses. The third bucket is used to fund longevity. The middle bucket is the go-between or transfer place to refill bucket number #1 as it is depleted.

What 3 things will help you fund your retirement? ›

Consider the following tips, which can help you boost your savings — regardless of your current stage of life — and pursue the retirement you envision.
  • Focus on starting today. ...
  • Contribute to your 401(k) account. ...
  • Meet your employer's match. ...
  • Open an IRA. ...
  • Take advantage of catch-up contributions if you're age 50 or older.

What are 5 reasons you should save money? ›

Reasons Why You Should Save Money
  • Financial independence.
  • Living debt-free.
  • Unforeseen expenses.
  • Buying a home.
  • Buying a car or other big-ticket purchase.
  • Medical emergencies.
  • Planning your retirement.
  • Building a college fund for your children.

What are 7 strategies for savings? ›

These seven savings strategies can help you save for different goals.
  • Automate your savings. ...
  • Set up an emergency fund. ...
  • Tackle high-interest debt first. ...
  • Save for short-term goals. ...
  • Save for medium-range goals. ...
  • Save for long-term goals. ...
  • Use multiple savings accounts.
30 Jun 2022

What is the 4 rule for retirement? ›

How the 4% Rule Works. The 4% rule is easy to follow. In the first year of retirement, you can withdraw up to 4% of your portfolio's value. If you have $1 million saved for retirement, for example, you could spend $40,000 in the first year of retirement following the 4% rule.

What is the 75 rule for retirement? ›

You are eligible to receive retiree benefits if you meet the “Rule of 75”. This rule states that you must be a minimum of 55 years of age and have a minimum of 10 years of continuous full-time service; if you meet both minimums, then the total of your age and years of service must equal at least 75.

What retirees do all day? ›

The study showed that those in retirement spent less time on things like working, educational activities, and caring for others like their children. They spent more time on things like personal care, eating, household activities, shopping, leisure, civic activities and talking on the phone.

What money should be used first in retirement? ›

The first places you should generally withdraw from are your taxable brokerage accounts—your least tax-efficient accounts subject to capital gains and dividend taxes. By using these first, you give your tax-advantaged accounts (IRA, Roth IRA) more time to grow and compound.

Should I keep my money in the bank or at home? ›

It's far better to keep your funds tucked away in an Federal Deposit Insurance Corporation-insured bank or credit union where it will earn interest and have the full protection of the FDIC.

What is the 5 30 rule? ›

The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do. The remaining half should be split up between 20% savings and debt repayment and 30% to everything else that you might want.

What are 2 Behaviours that promote saving money? ›

4 Steps to Cultivate the Habit of Saving Money
  • Start with a specific saving goal of building an emergency fund. ...
  • Save something every single day, even if it is just a dollar or two. ...
  • Make your savings visible. ...
  • Regardless of your income, consistently spend less than you make.
19 Mar 2018

Should I keep cash at home? ›

It's a good idea to keep a small sum of cash at home in case of an emergency. However, the bulk of your savings is better off in a savings account because of the deposit protections and interest-earning opportunities that financial institutions offer.


1. Retiring? Do these FIRST! 5 things to do to make your RETIREMENT transition a breeze
(Mark Singer CFP Your Retirement Guide)
2. The 4 phases of retirement | Dr. Riley Moynes | TEDxSurrey
(TEDx Talks)
3. Transition to Retirement - What it is and how to use it?
(Envision Financial Canberra)
4. Transitioning to Retirement After Your Last Day of Work (4 Steps to Help You Prepare)
(Retirement Transformed)
5. How to Successfully Transition from Military to Civilian Life | Brian O’Connor | TEDxOakland
(TEDx Talks)
6. 5 Keys To a Great Retirement Transition | Fritz Gilbert | The Retirement Manifesto
(The Money Guy Show)

Top Articles

Latest Posts

Article information

Author: Twana Towne Ret

Last Updated: 12/23/2022

Views: 6609

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Twana Towne Ret

Birthday: 1994-03-19

Address: Apt. 990 97439 Corwin Motorway, Port Eliseoburgh, NM 99144-2618

Phone: +5958753152963

Job: National Specialist

Hobby: Kayaking, Photography, Skydiving, Embroidery, Leather crafting, Orienteering, Cooking

Introduction: My name is Twana Towne Ret, I am a famous, talented, joyous, perfect, powerful, inquisitive, lovely person who loves writing and wants to share my knowledge and understanding with you.