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Review, Reorientate and Retire: Assessing Your Retirement Plan

Yet as the time approaches, it's not uncommon to experience anxiety about what can seem like an impending open-ended nothingness. And, given the current financial climate, there's a new question on everyone's lips which is: "Can I still afford to retire as planned?"

According to new research done by My Pension Expert, one-fifth of adults aged 40 and over across the UK have delayed their planned retirement date because of the cost-of-living crisis. 1 in 5 (21% of the 1,254 people surveyed) have delayed their retirement date due to the rising inflation, while 7% of the people over 40 said they had "unretired" and gone back to work in 2022 because inflation meant they needed to top up their retirement savings.

To try and mitigate these fears, it may help to review your retirement plan in order to re-orientate and move forward with confidence. This way, when the time to retire comes, it'll feel like less of a shock to the system as you'll already be financially and mentally prepared to retire and enjoy the years that follow. 

Review:

Finances, Timeline and Working Hours 

The first step in approaching retirement is to review your finances. Taking a good hard look at your investments, accounts, expenses, and even projected expenses will not only give you an accurate budget to work with, but it'll help you to assess whether retiring at your chosen date is still right for you. It may help to seek professional guidance when doing this.

If you're still on track: consider winding down from your career gradually by cutting your hours back at work over several years. This makes it less abrupt when you retire completely, and as an added bonus it gives you the additional space and time necessary to explore hobbies away from work. Over time, you can shift this balance to reduce your working hours further, making for a much smoother transition. 

*Don't forget to check how this may affect your pension - final salary pensions are less common now, but understand the terms of your pension before reducing your hours pre-retirement.

If you're concerned: Many of the UK's workforce are concerned that because of the cost-of-living crisis, they won't be able to save as much as they'd previously hoped. While this is largely out of your control, you can consider what changes can be made to make the most of this situation. This might include making changes to your pension provider, prolonging your retirement by several years, or re-assessing how to manage your assets and investments.  

Re-orientate:

The second step in approaching retirement is to review your lifestyle, hobbies, plans and relationships. 

Taking the plunge and committing to retiring shouldn't be too daunting if you've already dipped your toe in the water by reviewing the above factors beforehand. 

If you're still on track: consider what exactly you envision for your retirement years. This is a time to really review what you enjoy, what you find stimulating, and what you want to do for yourself. It's hard to comprehend before you hit the big R, but you will have a lot more time on your hands than taking up painting or the odd evening class. 

Friendships are just as important. It could be that when you leave work your social circle naturally becomes smaller. As you're winding down at work, take the time to review your existing friendships, including those with colleagues. Some may transition into lifelong friends, which will provide a helpful bridge and connection from work into your new environment.

If your plans have changed: It might be that you've discovered you'll likely be working for longer than expected. Whether this excites you or fills you with dread, take some time to allow yourself to adjust to your new plans. Remember that your timeline is fluid and that with regular assessments, you may be able to adjust it. 

You can use this time to think about how you'd like to use your time at work. This might include taking on a new role or position, starting a new project, or getting involved in a committee where your knowledge and expertise will prove valuable to the growth of your company.

You can look forward to continuing to strengthen your pension with a secure source of income, while adding more milestones to your career. 

3. Retire - When The Time Comes:

With your hobbies lined up, friendships strengthened and finances in order, the trick now is learning how to find true value in this next phase of your life by finding a renewed sense of purpose.

Structure 

This might come in the form of personal goals, such as learning, traveling, or spending more time with family. Whatever you decide, it will prove helpful to structure your days to enable a positive mindset. This should include physical exercise, as well as exercising your mind.

Mindfulness has become extremely popular in the last decade as a strategy to relieve stress, anxiety and depression and is a helpful way to manage your mental health.

You might even choose to focus on sharing your wealth of knowledge and the expertise you've acquired during your life so far. This might be in the form of volunteering, through projects or consultancy. 

Stay Tech-Savvy

While no one's expecting newly retirees to take to TikTok and go viral (unless you want to!), try not to lose your grasp on new technology.

Stay connected through emails, video conferencing, and social media if you have it. 

But also look at your phone apps and what you will need or might want for this new phase. If you don't want LinkedIn anymore, you might want some more general news apps or online forums about your interests instead. 

Time 

And finally, give yourself time to readjust. Whatever tips and advice you have it is a major life transition and it will take time to get used to the new routine, change of pace, and find your feet. Be honest and open with loved ones and let them in to help if you're struggling.

For more information and support on retiring, the below links should prove useful:

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