7 tips for preparing for your next retirement

Surprisingly, many retirees return to work for reasons other than financial ones.

According to T. Rowe Price’s recent Retirement: Saving and Sending Study, 20% of retirees are working and 7% are actively looking for work. Although many people work in retirement for financial reasons, the study found that 45% of recent retirees choose to work for social and emotional reasons.

Work offers more benefits than just an income stream. The survey responses highlight the need to also plan for retirement taking into account the non-financial aspects of work. Cultivating social and emotional connections outside of work is something to do before retirement, as the transition to retirement can be harder than you think.

Here are some tips for preparing for a rewarding retirement:

Don’t retire.

Take inventory of the non-financial aspects of your job. Do you like to contribute to your business and society using your skills and talents? Do you enjoy the social aspect of your job? If so, consider remaining in your workplace, either in your current job or in a new capacity, such as that of a consultant or contractor.

Why working is important: Assuming you can afford to retire, you are financially independent. You work because you choose to. If you have dues to contribute and you love what you do, why retire?

Work part-time to transition into retirement.

Take advantage of current trends. There may be more opportunities to transition into retirement as companies offer more part-time work. According to Dow Jones, full-time jobs decreased by 1.5 million over the past 14 months, while part-time jobs increased by 2 million over the same period (June 2023 to September 2024). transition into retirement, making it easier to find time to meet new people and build community connections.

Build a life you want to enter.

Work not only takes hours out of a day, but also mental energy, so it can be difficult to build a solid life outside of work. Start building social connections and community outside of the workplace now. Spend time and make a conscious effort to make new friends or deepen existing ones.

Start a new hobby or revive an old hobby before you retire.

Enjoying a hobby is mentally stimulating and gives you something to look forward to. If you start this early retirement, you can purchase the necessary equipment while you are employed and do not need to draw on your assets.

Make connections in your local community.

Join a few groups, perhaps something civic-minded and leisure-related. Arthur Brooks, Harvard professor and happiness expert, says that satisfaction comes from desires divided by what we have. He suggests that happiness comes from wanting fewer material things and building the fabulous four: faith, family, friends, and work (or meaningful contribution). Supporting your local community can replace the benefits of social connections in your workplace.

Travel now. Don’t wait.

Why wait until retirement to pursue your travel dreams? Even if you don’t have unlimited time off due to work responsibilities, consider taking two weeks at a time to start traveling now. Waiting until retirement to pursue your travel goals could lead to negative outcomes because your health is not guaranteed. Leave while you can.

Get in the best physical shape possible.

Exercise and happiness go hand in hand. It could be a walk or a hike. You can literally retire! Use your company’s resources, such as a company-sponsored wellness program, to optimize your health and live a long, happy life. Long-term research studies have shown that moderate, regular physical activity reduces mortality by 19-25% from all causes. Exercise has a positive impact on mood, reducing depression and anxiety.

People may want to return to work because they derive immense pleasure and fulfillment from their career, but don’t fully realize it until they retire. Some people may prepare for the financial aspect of retirement but fail to consider the social and emotional aspects. Regardless, taking stock of what brings satisfaction in life is a worthwhile project, especially as you approach retirement.