Retirement Shock! Will You Be a Victim?

According to the Angus Reid Institute Canada, 22 to 24% of retirees report struggling or feeling off-track. 30% of new retirees experience psychological or social adjustment issues (such as isolation or loss of purpose).

Key Reasons Retirees Struggle

Financial anxiety & reluctance to spend. Around 68% of retirees and pre-retirees worry about outliving their savings, leading to a psychological block where many refuse to spend principal even when they have accumulated enough money.
Private vs. public sector divide. Private sector retirees struggle (22%) due to limited work pensions as compared to 12% of public sectors retirees.
Forced or premature retirement. 54% of retirees are forced out earlier than planned due to health issues, burnout, or company downsizing.
Health & long-term care. Around 41% of retirees cite declining health and the looming cost of long-term care as major sources of stress, alongside concerns of losing independence (36%) or cognitive decline (32%).
Inflation & cost of living. High consumer costs, housing, and market volatility make it difficult for retirees on fixed or government-reliant incomes to maintain their expected lifestyles.

What to do to prevent unhappiness in retirement

To prevent unhappiness, explore your future as a retired person well before you plan to retire (ages 45 to 65). Successful retirees recognize that what’s needed involves careful planning across several areas including: health, finances, and purpose.

Actions:

Envision and practice. Before leaving the workforce, imagine your new role (how do you see yourself in retirement). Practice your retirement lifestyle during vacations or weekends to ensure your expected hobbies bring you joy.
Share your retirement vision with your financial advisor. Determine what is a realistic amount of money needed based on your visualized lifestyle. Create a well-prepared budget.
Establish a new routine. Schedule your days with a mix of physical activity, social interaction, and mental stimulation.
Find your ‘place’. Identify a consistent public space – such as a community club, gym, or café where you can regularly interact with others.
Ask ‘who are you?”. Replace your professional title with a new purpose. Pursue part-time consulting, mentoring, active volunteering, or mastery of a complex skill (i.e. instrument or language).
Treat health as a primary asset. Dedicate time to exercise, diet and nutrition, mental relaxation, and spiritual well-being. Keeping healthy should be part of your journey into retirement.
Use legacy as a guide. Determine what is important and use it as a compass to guide your activities (i.e. creating a plan for passing on knowledge, experience and advice to grandchildren and others).

The Centre for Ageing Better found: the more we have control over the retirement process, the more our positive adjust to retirement.

For additional information read: Retirement: The Ultimate Life Journey. Available on Amazon Books.