Updated: Mar 6
Haven’t thought about planning for your retirement well-being? Here are some reasons why you should start planning today!
While finances are crucial in deciding if one is able to retire, other aspects of retirement planning such as mental and social health should not be neglected. The 2019 Global Retirement Index also found that Singapore retirees scored poorly in the quality of life sub-index which takes into account happiness levels and material well-being.
Therefore, individuals need to take into account their physical health, mental health, and social health when planning for their retirement to ensure a holistic planning.
The transition into retirement can be difficult for some individuals, with possible negative psychosocial effects such as depression, loneliness, and feelings of loss.
Failure to plan for your retirement well-being can result in high levels of stress. According to the Holmes-Rahe Stress Inventory, retirement ranked 10th on the list of life’s 43 most stressful events, above events such as a major change in the health or behaviour of a family member and pregnancy. Those in retirement have a higher probability of suffering from clinical depression by about 40%.
Failure to plan can also result in poorer physical health. Retirement decreases the likelihood of being in ‘very good’ or ‘excellent’ self-assessed state of health by 40%, and increases the possibility of having at least one diagnosed physical condition by about 60%.
Social health will also be affected by retirement. Retirees that were forced to retire earlier than they had expected may be more isolated in retirement. The Cornell Retirement and Well-being Study found that 72% of their retired respondents felt that the sudden lack of interaction with coworkers - described as “missing coworkers” was a disadvantage of retirement. It is important for those in their retirement years to have a strong network around them that they can rely on for support and company as they transition from work-life to retirement.
Planning for retirement allows you to visualise the goals and activities that you will be doing after retiring. This enables the individual to get a real sense of the amount of free time they will have and the unpleasant feelings that they may have during retirement’s difficult transition time.
To conclude, planning for your retirement well-being is essential before retirement. Some activities that you can plan would be to consider volunteering, lifelong learning, and a second career. You can also opt for a complimentary customised retirement well-being starter kit from us here.