One of the major transitions in later life for most people is the process of retirement. It has influences on our financial situation as we move away from monthly salary to pensions but it also affects our self-perception, our everyday life, our leisure time and our mental fitness.

If you have been the breadwinner of the family for 40 years, if you have defined yourself strongly through your work and found affirmation in it, or if your social contacts were mainly in your professional life, there is a great danger of falling into a deep dark hole.

Planning for this stage of life contains two aspects:

In regards to financial retirement planning: We all want to have a decent standard of living in retirement and the earlier we start making provisions, the easier it will be to achieve that. So first of all, try to find out more about your retirement age and the expected pension. Then make an estimate of how much you think you will need in retirement to maintain the lifestyle you want. More information on the financial aspects of preparation are in chapter 2.1 Finances.

Lifestyle planning has to do with active ageing. We need to consider how we stay fit and healthy, how our hobbies and interests including further education will figure in retirement, how our relationships with friends and family will change and a whole range of other aspects.

One important question is also whether we want to work in retirement including voluntary work. Some people might prefer – or need – to keep working in some form or another, for example in bridge employment, part-time, or self-employed, e.g. in an advisory capacity or also volunteering. Some studies have linked working past retirement with better health and longevity. This has to do with mental stimulation, the feeling of being needed, social contacts and other aspects. But be smart about what you are doing, don´t stay in a job you hate but look for something that gives you purpose.