| 'Retirement is often viewed as an 'event' when | | | | trip' you want to take. Maybe you've been 'saving up' |
| retirement is actually both a process (requiring | | | | experiences for your retirement - something along |
| planning and adjustment) and a life stage (lasting for | | | | the lines of 'Once I retire, I'm going to |
| multiple years.)' Christine A. Price, Ph.D | | | | ___________' (you fill in the blank). |
| 'It's just a stage you're going through...' - how many | | | | This phase can also include some feelings of |
| times have well-meaning friends and family members | | | | disengagement from the workplace (increasingly so |
| said that to you over the course of your lifetime? | | | | as the retirement date approaches) but, alternatively, |
| And don't expect them to stop now, because, as far | | | | many soon-to-be-retirees report a feeling of |
| as retirement is concerned, there are six identified | | | | increased focus and energy as they work hard to 'tie |
| stages that most retirees go through to varying | | | | up loose ends' and hand over a tidy ship to their |
| degrees. They are: | | | | successor. |
| 1. Pre-Retirement (the working years) | | | | Some of the potential pitfalls associated with this |
| 2. The Retirement Event | | | | stage of retirement include:o Not saving/investing |
| 3. The Honeymoon Phase | | | | enough moneyo Neglecting, self-managing or not |
| 4. Disenchantment | | | | getting a second opinion about your investment |
| 5. Reorientation | | | | portfolioo Underestimating your life expectancy |
| 6. Routine | | | | (Fidelity Investments has found that the chances of |
| I'm going to take a look at each of the retirement | | | | one member of a couple living past the age of 90 |
| stages in turn and identify some of the potential | | | | are about 50%)o Leaving assets unprotected by not |
| pitfalls associated with them. So here we go... first | | | | having adequate life, medical, home or long-term care |
| off, the Pre-Retirement stage, otherwise known as | | | | insuranceo Not giving any/enough thought to the |
| the working years. | | | | non-financial side of retirement and what you want |
| This is the time when your plans and perceptions | | | | to be, do and have when you retireo Neglecting your |
| regarding retirement are formed. You're making the | | | | healtho Not developing any hobbies or interests |
| pension contributions and building your retirement | | | | outside your worko Investing more time and |
| nest egg to the best of your ability. | | | | attention in your work than you do in your life |
| You've probably also started to give some thought | | | | outside worko Not developing any friendships outside |
| to what you want to do with your retirement - | | | | worko Neglecting your relationships due to pressure |
| maybe you're thinking about moving somewhere | | | | of work (and thinking that you'll have plenty of time |
| warm and sunny and you're checking out property | | | | to repair any damage once you retire - the |
| prices in the areas that appeal to you, or you're | | | | relationships may be damaged beyond repair once |
| looking at travel sites to get some ideas about a 'big | | | | you get around to it). |