Five ‘Potholes’ in the Path to Retirement by Nancy Conroy

Spring in Canada means potholes. As a driver, it’s important to learn to manoeuve around them; otherwise, the ride can be pretty bumpy.

You may be wondering what potholes have to do with retirement. Well, there are a number of ‘potholes’ that can be encountered on the road to retirement and it is important to know where they are and to take precautions to avoid them, just as we try to avoid potholes in the road.

A lot of research has been done on the retirement transition and there is also a lot of popular literature on how to plan effectively for retirement. What emerges from all of this knowledge about retirement are the following retirement ‘potholes’.

Pothole #1: Not Having Enough Money

This is a rather obvious pothole and one that most Canadians would expect to see on the list. Even though we know that pre-retirees are aware of this ‘pothole’ and many worry about this ‘pothole’, statistics show taking action to avoid this ‘pothole’ just isn’t occuring to the extent that it should. Many Canadians aren’t saving enough for retirement, head into retirement with considerable debt or have unrealistic expectations about how much they need in retirement

Pothole #1 – Tips

1. Be knowledgeable about the different sources of retirement income
2. Use the financial calculators in LifeScape to assist you in doing your financial planning
3. Get help from a financial planner to assist in this process
4. Save for retirement as early as possible

Pothole #2: Not being Healthy

There isn’t much point looking forward to retirement if you aren’t taking care of your body before you get there. We know that as we age, our bodies let us down. Many diseases are age-related but can be postponed or avoided altogether with action now. Good health in retirement will create the opportunity for you to engage in a wider range of activities, to maintain independence in later life, and increase the chances of living to a ripe old age.

Pothole #2 – Tips

1. Make every effort to keep in good shape before you retire.
2. Give priority in your retirement plan to lots of physical and mental activity
3. Eat a healthy diet now.
4. Explore how you can give an even greater priority in retirement to good nutrition habits.
5. Check out the Healthy section in LifeScape where you will find a wealth of information and resources to assist you.

Pothole #3 – Loss of Identity

Working (for income) contributes to how we see ourselves. Some individuals derive their entire sense of identity from their work. They are their work. Also, in Canada, we like workers. We assign status to workers because they are productive members of society. Children and retirees are considered to be ‘dependents’ on society. Many studies have shown that individuals whose sense of identity comes primarily from work and those who possess a strong work ethic often experience a bumpy ride in retirement.

Pothole #3 – Tips

1. Be aware of how important your work is to you before you leave it behind
2. Do the Work Quiz in LifeScape help you assess the benefits of work to you
3. Phase into retirement if you are uneasy about leaving work cold turkey
4. Continue to work after you retire
5. Practice being retired BEFORE you retire
6. Use the Vision Tool in LifeScape to help you to define what you want your retirement to look like.
7. Don’t retire; it isn’t for everyone
8. Get a coach if you need help during the transtion from work to retirement

Pothole #4 – Spousal Conflict

Each individual’s retirement will have an impact on those around them. This is especially true for those with a partner. First of all, many couples will experience two retirements, sometimes at the same time but more likely at different times. Staggered retirement is becoming quite common. The dynamics here are similar to the situation where one person has always been at home. Studies have begun to appear that identify what the issues are for the retirement of baby boom couples. The least conflict appears to occur when the couple retire at the same time; the most conflict appears when the man retires first, his wife keeps working, and he still doesn’t do any housework!

Pothole #4 – Tips

1. Each person should have a vision for their ideal retirement
2. Couples need to then share what these visions are. Doing so in a public place is sometimes helpful!
3. Maximizing both visions is then the challenge.
4. Check out some of the great books on managing two retirements in the Happy section of LifeScape and try out the You and Your Partner Quiz.
5. Use a coach to help ‘negotiate’ a shared vision for retirement

Pothole #5 – Loneliness

Work provides us with a great deal of social contact. Several hours a day, several days a week, most days of the year we show up to work and the people are just there. Where will your social contact come from in retirement? Perhaps you are looking forward to quiet times in retirement – reading, gardening, surfing the net, puttering, renovating. Perhaps most of your friends are work friends. Perhaps you live alone. Perhaps you are an introvert. Take into account in your retirement planning the importance of your social networks as retirement can bring loneliness and isolation.

Pothole #5 – Tips

1. Ensure that some of your life in retirement is social
2. Invest in your important relationships now to ensure that they continue to be strong in retirement
3. Expect to lose some of your work friends
4. Be open to making new friends in retirement
5. Try the Quiz on the Friends and Family page in LifeScape to determine if this is an area where you need to do some work
6. Choose to live in an environment that is conducive to good ongoing social contact.

Unfortunately, we can expect to find potholes in our roads every year as spring arrives. Likewise, we can expect to run into some potholes in our journey into retirement. Being aware of these potholes and developing a strategy to avoid them will increase the chances that the transition to retirement won’t be full of bumps!