5 Unexpected facts about retirement we don’t often think about

For the majority of us leaving our office desks forever is something we can only imagine about as it’s so far away.  For the luckier ones that are much closer to retirement this can be a time of excitement and relaxation.  Spending our days at the golf course or with our community groups, families, friends and grand-kids all day every day sounds like heaven on earth.  The transition from full time work to full time play however may become unbearable and is sometimes full of trepidation.  Here are 5 facts about retirement that you should be looking at before retiring.

1. One of the first things retirees discover about retirement is that they have too much time on their hands with nothing to do. Playing a round of golf with mates, or enjoying a drink at the bar will only fill up a certain amount of time in the day and you can’t go doing the same thing day after day.  Couples and singles alike will quickly become very unhappy once they run out of ideas on what to do with their time.  Having ideas in your head on what to do in retirement is one thing; however actually doing them is another.  We often hear clients who have a weekly plan on what they want to do are those who enjoy it most.  You will never be as busy as you were pre-retirement so it’s important to map out ongoing hobbies, part time work and social events before embarking on retirement.  That way you might be one of the clients who say to us they are so busy, they don’t know how they had the time to work!
2. Retired husband syndrome – Many couples get very excited about retiring together, travelling the world together and spending intensive time together. If this is you then consider the fact that you and your other half may have been together for the past 30 years working full time.  Aside from weekends and holidays, you never have to see each other for more than a couple of hours in the morning and night.  Now all of a sudden you see each other 24 / 7 and may even start to discover that you can’t stand being together for a prolonged period of time.  Each of you having your own hobbies, goals and friends will ensure you don’t spend intensive time together.  As my mother said when my father retired, “I married you for better or worse, but not for lunch”.  In other words, she wanted to ensure he also had his routine and didn’t interfere in hers.
3. Not having enough money to fund retirement – Once retired you might have the goal to travel, see the world and complete your bucket list, unfortunately you might not have the funds to do so. Travelling can become very costly.  A single international trip can set you back many thousands of dollars.  By the time your second trip comes around you may find that you don’t have enough funds anymore, so eating out may be out of the question and this year you won’t be able to travel overseas to see your grandchildren.  Having a good financial planner early on can prepare you and set realistic goals for your retirement and help you build your super to achieve them.  This way at least you have a more clear expectation of what you can afford in retirement and prevent any nasty surprises once you’ve retired.
4. Entitlement to social security – At present, the Australian pension age is age 65, which is subject to rules, regulations and changes in the future. During retirement some retirees aren’t aware of what social security benefits they’re entitled to.  Even if you are receiving funds from your Superannuation benefits, you may still be entitled to government age pension (subject to income and asset tests).  Having a good financial adviser will ensure you’re kept up to date regarding any social security payments you’re entitled to.
5. Losing your identity from not being at work – For those of us who are passionate about our profession, this becomes our identity. Anytime your friends or family think of Engineer, Accountant or Doctor, they think of you.  So it’s no surprise that once you retire you may feel like you’ve lost your identity, which may lead to discontent and even depression.  Without the daily interaction of your work colleagues, your mental and even physical health may start to deteriorate.  Retirees who are not very active tend to decline rather quickly mentally and physically.  Joining up to the local gym, taking up classes and just continuing to meet new people will have a longer lasting affect for you.  After all, we all need something exciting to look forward to in the future.

If you are one of the lucky ones thinking about retirement, make sure you start to plan early and talk to the team at JBS so there are no nasty surprises.