How to overcome retirement anxiety | abrdn (2024)

FAQs

How to overcome retirement anxiety | abrdn? ›

The hardest part of early retirement, in my experience, was adjusting to a new lifestyle. When you retire early, you suddenly find yourself with an abundance of free time. This may sound exciting at first, but it can also be overwhelming. Without the structure of a regular job, it's easy to feel lost or purposeless.”

The hardest part of early retirement, in my experience, was adjusting to a new lifestyle. When you retire early, you suddenly find yourself with an abundance of free time. This may sound exciting at first, but it can also be overwhelming. Without the structure of a regular job, it's easy to feel lost or purposeless.”

Some feel anxious and saddened by the loss of routine and direction in their lives. Almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall. Cicalese says she misses the structure of her former profession.

It may stretch over a week or two, but it typically involves a short period of time. It is a rite of passage. But some important emotional, psychological, and physical changes take place almost immediately.

Sudden retirement syndrome, refers to the feelings of being lost, purposeless, or adrift after retiring from one's career. For many people, their job isn't just a means to earn a living—it's a central aspect of their identity and purpose. When that role ends, many may feel lost.

What is the happiest age to retire? ›

The traditional retiree feels a boost in happiness starting around age 57, or eight years earlier than age 65. Therefore, the 45-year-old retiree may start feeling a rebound in happiness perhaps starting as early as age 37.

67-70 – During this age range, your Social Security benefit, if you haven't already taken it, will increase by 8% for each year you delay taking it until you turn 70. So, if your benefit will be, say, $2,500/month if you start at your full retirement age, it would be more than $3,300/month if you can wait.

The 3% rule in retirement says you can withdraw 3% of your retirement savings a year and avoid running out of money. Historically, retirement planners recommended withdrawing 4% per year (the 4% rule). However, 3% is now considered a better target due to inflation, lower portfolio yields, and longer lifespans.

The first thing you should do in your retirement is decide how you're going to spend it. Creating a retirement checklist or setting yourself goals and aspirations in the form of a bucket list will provide a structure, which may be lacking once you have stopped working.

Many individuals find purpose in life by engaging in their community or a purpose beyond themselves. Think about what charities you might want to support, and how any donations you give might factor into your financial plan in retirement.

About 67% of retirees who are 15 years or less into retirement said they're happier since retiring, and 82% said they're more relaxed on a typical day. While only 8% report feeling less happy in retirement, about a third said they're not more happy than they were before leaving the workforce.

Retirement syndrome can take a toll on your mental health, leading to feelings of depression, anxiety, or a loss of self-worth. Without the daily structure and social interactions provided by work, retirees may struggle to find meaning and fulfillment in their lives.

If you feel like you've completed what you set out to do with your work, that is one indication it may be time to let it go. When you are financially secure enough that you no longer need the income, and feel that you have done all you need to do at your job, retiring might be the right choice.

A day in the life of a retiree isn't what it used to be… Research we conducted found that two thirds of retirees spend more time with their families when they leave work, a quarter take up new hobbies, almost half spend more time with friends, and a fifth travel more.