Two years ago this week, Lisa and I took a leap of faith and retired early. Let’s just say the journey toward retirement wasn't exactly smooth sailing. We were riddled with fear and anxieties.
For most of our married life, we were a single-income household, living paycheck to paycheck. We struggled for years to get out of debt and only had modest retirement savings. People in our situation don't retire, and they definitely don't retire early at 56!
One of our greatest pleasures in retirement is the opportunity to travel to new places and meeting new people.
What were we thinking? I fully expected to work into my 70s. Not because I wanted to, but because I couldn't see a viable path toward retirement. This fear of retirement, sometimes called retirement anxiety, is a common feeling among most working-class Americans. Today, I want to share with you some signs that you may be struggling with retirement anxiety and provide some insights to help you overcome your fears.
Retirement Anxiety: Top 5 Indicators
Financial Fears:
If you're like most Americans in the workforce, your number one retirement fear is not having enough money to fund your retirement. This is not an irrational fear and was the biggest concern that we faced and had to overcome before retirement. Lisa and I both worried about a declining standard of living if I stopped working. The additional fear of a market decline and rising inflation and interest rates only increased our anxiety.
To overcome our biggest hurdle, we had to do our homework and come to grips with our true financial situation. There could be no more guessing what our monthly income and expenses would be, we had to create a legitimate retirement budget. Once we were confident in our monthly projections (income & expenses) we took the next step and practiced living within our proposed retirement budget while I was still working. Because we were able to have a “retirement budget rehearsal” for several month, we could validate our finances and standard of living.
“It is better to live rich than to die rich.”
– Samuel Johnson
Additionally, we set a goal of saving 1 year of living expenses in a high-yield savings account to provide a financial safety net. These steps in our budget planning process were critical in building the confidence that we could achieve financial independence and an early retirement was feasible.
Money is usually the first concern of Americans looking to escape the workforce, but it is one of the least important factors for a successful retirement.
Identity Fears:
Your job is a big part of who you are, and you worry about losing your sense of purpose or social connection without it. It's not just the financial aspects of retirement that are scary. There's a significant emotional calculus that we had to consider as well. In reflection, I will admit that I don't miss the endless emails, the marathon meetings, or the late-night phone calls from my working years. That said, there are times that I do miss the social interaction and the collective goals and sense of purpose that a work identity can provide.
The fear of losing your identity can be overwhelming for some, ultimately preventing them from ever retiring. Some people are afraid of feeling lost if they retire. For Lisa and me (mainly me), we had to redefine our purpose once we retired. In the Army, my purpose for over 30+ years was to serve my country and care for my soldiers. Once I retired, that purpose and identity was gone.
“You are never too old to set a new goal or dream a new dream.”
- C.S. Lewis
I knew I had to face this challenge head-on or risk the next 30 years of my life being a confusing, miserable, and unrewarding time. I decided to take an inventory of my faith, my relationships, my hobbies, and my interests. This exercise in self-reflection takes time (weeks, months, or years) and likely won't reveal an answer right away. Additionally, your initial answer may change, and that's okay. When I was a young man, I had no idea what my identity and purpose would be when I became an adult. It took time. Transitioning into the retirement stage of life is no different. My advice is not to rush toward finding your new identity, but to be open to self-reflection and trying new things in life.
It is always a privilege to celebrate the retirement milestone of friends and family.
Health Fears:
Of the retirement anxiety indicators, health concerns were the least of our worries. This isn't because we're unconcerned about healthcare costs in retirement, but because we have always prioritized a healthy and active lifestyle. Sure, we get sick on occasion, but overall we've been blessed with good health. However, for people with pre-existing health conditions that require ongoing medical care, this fear is much more relevant. You're worried about affording healthcare or maintaining your health in retirement. This is perfectly understandable.
“A healthy man wants a thousand things, a sick man only wants one.”
- Confucius
For us, proactive healthcare is key. We never miss our annual physical, dental, or eye exams. Since retiring, we have more time to focus on reducing stress, developing healthy habits, staying active, and strengthening our social connections. There is one area I need to work on, though: ensuring I get enough sleep. My goal is 8 hours each night, but I seem to always fall a little short.
An active lifestyle is critical for sustained quality of life and an antidote to boredom.
Boredom Fears:
You can't imagine what you'd do with all your free time and fear becoming bored. There are a few reasons why boredom is a common fear for retirees. Work often provides structure to your life, a daily routine, social interaction, and a sense of accomplishment. Leaving the workforce can create a big void in your daily routine. This lack of structure and newfound free time can lead to feelings of boredom and stagnation. The loss of work friends and social connection can also exacerbate feelings of boredom and loneliness.
“I've got a great ambition to die of exhaustion rather than boredom.”
- Thomas Carlyle
To be honest, I have not suffered from one day of boredom since retiring. If anything, I’ve been so busy the past two years (traveling, projects, etc…) I wonder how I ever had time to work. However, at times I have missed the social connections from work. To overcome the feeling of isolation we have joined a local church, participate in a local Airstream Club, and make it a point to visit family and friends during our travels.
The point is that boredom and isolation are real fears that we need to plan for in retirement. For me, staying connected with family and friends, having a structured routine along with a daily task list of things I want to accomplish is critical. Usually, I have more tasks or social events on my list than I have time in the day. That is fine, they just stay on my “To Do List” until I can get them accomplished.
Planning for the future doesn't have to be an overwhelming task. We developed a timeline, created a checklist of tasks to accomplish and tracked our progress throughout.
Planning Fears:
We've all been there - long work weeks with the weekend as the only thing keeping us going. Retirement might seem far off, but that very distance can lead us to believe we have plenty of time to plan and save. However, humans naturally prioritize short-term rewards over long-term goals. This tendency, called "temporal discounting," makes it difficult to dedicate time and resources to future goals like retirement planning. The lack of a plan, however, creates a cloud of unknowns that only fuels retirement anxiety. While retirement itself can be a positive change, a lack of planning can make it feel daunting.
"By failing to prepare, you are preparing to fail."
- Benjamin Franklin
You wouldn't embark on building a house without a blueprint, so why would you approach retirement any differently? If this resonates with you, it's wise to face retirement planning head-on. If you're uncomfortable assessing your financial situation, consider talking with a financial advisor. Worried about your future lifestyle? Reach out to current retirees to gain a realistic picture of retirement life. Take time to reflect and brainstorm activities you might enjoy in retirement, like hobbies, travel, or volunteering. Capture all of these areas in a notebook, spreadsheet, or whatever method works best for you to consolidate information, and review it periodically, revising it as necessary. The key is to start planning now and take action while you have the time advantage.
Final Thoughts:
It’s important to remember that retirement anxiety isn't inevitable. By having an understanding that these fears are normal and then taking pro-active steps like financial planning, exploring retirement interests, and potentially seeking professional guidance, people from all walks of life can navigate this transition with greater ease.
Your Turn: What are your biggest retirement fears? What steps are you taking in preparation for retirement? Leave your comments below…
Cheers & Good Luck!
Rick & Lisa
The Wright Life
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