Jane is a 67-year-old executive who has been diligently saving for retirement since she entered the workforce after university. She has more than enough saved in her super to last the rest of her lifetime, regardless of any emergencies that may arise along the way.

Given this information, do you think Jane is ready to retire? Before reading on, choose one of the three options below:

  1. Absolutely.
  2. Nope, not yet.
  3. Maybe. There isn’t enough information.

The answer is … (drum roll please) … 3!

Although this short description suggests that Jane is financially ready to retire, it doesn’t say anything about her emotional readiness. And that can be just as important.

What does it mean to be emotionally ready to retire?

When people think of retirement readiness, their minds usually go to their finances. Given the importance of being able to fund retirement, considering your finances first is completely reasonable.

However, that isn’t all it takes to prepare for retirement. Too many people discount the psychological impact of retiring, which may have harmful consequences if you’re not prepared.

Why does this happen? Though the prospect of never working again may seem exciting, retirement creates its own type of stress. When a person retires, their whole life is turned upside down. Their everyday routine goes out the window. The connections they used to make daily become nonexistent. Even their sense of individuality and independence may start to seem shaky.

So, what is a person to do—just never retire?

Absolutely not.

But we should emotionally prepare for retirement just as much as we financially prepare. Luckily, getting emotionally prepared won’t take 40 years (the way saving for retirement did), but it will still take some time and a bit of soul-searching.

The nonfinancial retirement planning checklist

Emotionally preparing for retirement often means integrating some of the good elements of preretirement work into your postretirement life. These structures can make it easier for you to take full advantage of the “free” time that retirement brings.

Establish a routine (bonus points if you incorporate healthy habits).

One of the reasons retirement is such a shock is because of the loss of your daily routine. Research has shown a relationship between routines and health, including mental health.

Implementing a planned structure to your day can help you feel in control of your time, which is one thing retirement gives you a lot of.

Before retiring, try mapping out what a week of your life could look like. You don’t have to plan every hour, but establish a general schedule and try to identify a few tasks each day. What time will you wake up every morning? What days will you go to your spinning class?

Will you reserve one hour each morning for reading? What days will you concentrate on that woodworking project?

Plan for social connections.

When retirees are asked what they miss most about work, 41% say they miss the people and the social stimulation. This number shouldn’t be a surprise: Research has shown how strong social connections can lead to a longer life, better health, and a sense of well-being. However, most people retire without any consideration for their social connections.

Before retiring, have a plan to see loved ones. Maybe it’s taking care of the grandkids every Monday, meeting a friend at a coffee shop every Sunday morning, or taking an aerobics class with a friend every week.

It may seem foreign to have to plan social connections with folks you used to see every day without effort, but once you take away those common meeting areas—whether it’s the water station or the coffee shop before catching your train—you must put in a little extra effort to keep those connections strong.

Define your life purpose and make sure it is represented in your retirement life.

This last item on the checklist is centred on your idea of a “good life.” This may not be easy to define, but existing tools and frameworks can help guide the process.

In our recent research, we found success in helping people uncover their life values in the context of their financial goals by using the PERMA-V framework. This framework is from the field of positive psychology and posits that well-being has several components: positive emotion, engagement, relationships, meaning, accomplishment, and vitality.

Before retiring, take a sheet of paper and try writing down your definition of a life well lived.

First, try writing down what comes to mind. Then, refer to the PERMA-V framework: Review each component and jot down additions to your definition. At this point, you can also consider the parts of your current job that you enjoy. Not everyone considers their 9-to-5 job their passion, but you may find that you do get some source of meaning and fulfillment from it. Make sure to take note of those positive aspects.

Now, rewrite your definition of a good life, taking all the notes you created into consideration.

With this definition in mind, go back and add to your routine and social connections plan. For example, if the life value of accomplishment resonates with you, maybe you could consider getting a degree during retirement or trying out a small business—something that will give you that sense of accomplishment.

It’s important to note that this checklist is really just a shortlist. Preretirees should consider this a starting point to psychologically preparing for retirement and should add to it as needed.

For example, consider the parts of your current job (or preretirement life in general) that you love, hate, and feel neutral about. What else can you do to make sure you take the good with you and leave the bad behind?

Taking full advantage of your retirement

When people think of retirement, they tend to focus on the bad or stress-inducing part of increased life expectancies, such as the associated medical costs. (I once heard someone lament that her family members had very long life spans.)

Although these concerns are warranted and worth preparing for financially, we should still strive to see the good that a longer life can give us.

Laura Carstensen, the founding director of the Stanford Center on Longevity, encapsulates this idea with five words: “We have 30 extra years.”

These 30 years are our bonus. Our extra reward. What will you do with it?

Not sure you are ready financially for retirement?

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