There is a lot of focus on the “numbers” in retirement planning. And a lot of focus on the specific tools and techniques that you can use. But there’s not much focus on what it is like to actually be retired.

But that’s what all of the spreadsheets, and research, and calculations are there to support.

Working out how to pay for what you want to do in retirement is important; but you have to know what you want to do in retirement in the first place.

So, what do you want to do in retirement?

It’s probably more difficult to answer this question than to create the perfect retirement investment portfolio – and that’s not easy!

Whilst we are working, we think of retirement as the absence of work. It’s usually portrayed by the marketing people as a really long vacation (we’ve all seen the pictures of the happy couple on a beach or playing golf).

But it’s not really like that.

The end of work may be the end of one phase of life, but it’s also the starting point of a new phase. A bit like getting your first proper job, getting married, paying off your mortgage or the day your youngest child leaves home, whilst stopping work may feel like an end, it’s also a beginning. And just like any big change, there are positive and negative aspects to that change.

The plus sides are pretty obvious. We have the flexibility to decide what we are going to do. We don’t have work anchoring us to a set schedule, so can do what we want, when we want (usually within reason). But this freedom is also one of the biggest challenges that retirees face. For many people work was at the centre of their lives, and, perhaps without realising it, many of us like having the anchor of work.

Before retirement, work provides the structure of your day. You (and/or your spouse) go to work at roughly the same time every day, and then return home at roughly the same time every evening. Work probably provides many of your social connections. And, almost universally, you derive a large amount of your status and self-worth from your career. When we meet someone new, within the first few minutes, the conversation is likely to turn to our jobs.

When we retire, we separate ourselves from this to a very large degree. Often retirees can struggle with status and self-esteem, and this can be problematic for their relationships with others (especially their spouse).

In fact, retirement is one of the common points where couples end up divorcing. This change in routine – especially if one spouse retires before the other one – can drastically change the dynamic in a relationship. This can be worsened if you have not talked through what you want out of retirement, and what it will look like together.

The transition to retirement, whilst it has the potential for really great things, means that you need to be intentional about what you want to be doing.

As you don’t have the outside constraints of work providing structure, so you need to provide your own structure.

When you retire, you likely want to go out and do all of the travelling that you haven’t had the time for or cycle up all the mountains you can imagine. Most people treat the first year or two of retirement as a very long holiday. But this period will come to an end. There are only so many mountain passes to conquer (so I am told).

Retire to Something – Not From Something

In an ideal world you shouldn’t be retiring from your job – you should be retiring to something you love to do. Life is probably not fulfilling if we are focusing on the absence of something. A satisfying life is probably not just the absence of discomfort.

Ideally, you should be thinking about, and looking forward to, the next phase of your life. But not that many people think about what they are retiring to. This is true, even if you are desperate to retire from your job. If you are forced to retire, then we still recommend that you set time aside to think about the next phase of your life. Our American friend, Wade Pfau, suggests that you use the following approaches (excuse the Cheesiness!):

• Self Reflection
• Talk to Others
• Go back to studying
• Trial and Error
• Talk to your Spouse

Although pleasure and leisure are probably part of the mix of things that you like, and want, to do, they probably shouldn’t be everything.

Our retirees tell us that there are a host of activities that you can take on, and goals that you can set for yourself. Some of them are deep and profound but there’s no rule that says they have to be! What matters is that you find the things that keep you engaged and active. And don’t forget that you’ll change through time. Just like you aren’t the same person you were in your 20s (hopefully anyway), the person who retires at 60 won’t be that same person in your 90s. We evolve through time – both in terms of the things that we are interested in and enjoy, but also the things that we are capable of.

There’s very little about the financial side of retirement planning that is simple. And there’s very little that is fun (unless you like playing with spreadsheets – which, admittedly, I do).

Figuring out what you want to do in retirement is one of the few places where we can stretch our creativity and focus on what we actually want.

Spending time, concentrating on what you are retiring to, will not only make your own and your spouse’s life more enjoyable, it should help you stay healthy and mentally engaged.

Philip Wise | philip@sussexretirement.co.uk

Managing Director and Chartered Financial Planner

This blog is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.