Does retirement bring about happiness and boost wellbeing? What guarantees a smooth transition into retirement and makes a happy retiree?
In today’s post, I want to refer to the study done by What Works Wellbeing on Retirement and Wellbeing. What Works Wellbeing is an independent body for wellbeing evidence, policy, and practice, and in this study, they examine whether retirements bring about happiness and boosts wellbeing. They also look at the triggers and causes of what affects your wellbeing in retirement.
The link between retirement and wellbeing is complex.
Wellbeing during retirement does depend upon levels of pension income and health, but control over the retirement decision is also key. Even after accounting for income and health, wellbeing is higher for those who have control over the timing or plan for their retirement, and voluntary retirees derive greater pleasure from free time in retirement. On the contrary, wellbeing is lower for those who are involuntarily retired, especially due to health reasons
What struck me foremost from this brief summary of the findings is how important having control over your retirement seems to be when it comes to the fulfillment and happiness of your retirement.
This is relevant to individuals who maybe didn’t feel ready to retire, didn’t have a choice but to retire, or were pressured into retirement from their work or their family. Which essentially leads to you becoming retired before you are financially or psychologically ready to do so.
Wellbeing is lower for people who are involuntarily retired. It’s higher for those who have control over the timing or plan for their retirement.
So, just by simply taking control of your retirement plan and ensuring that it aligns with how you really feel, can make a significant difference throughout the duration of your retirement!
Another interesting factor that the study found was that the type of job that you have before you retire is a key element that influences your wellbeing in retirement.
People who retired from more satisfying, prestigious, career occupations had difficulties in adjusting and are more likely to be adversely affected by retirement.
If you have spent the majority of your working life in a high-achieving job role, living a fast-paced life that is primarily focused on work, then the shift to retired life will undoubtedly be a difficult transition.
Based on these findings, the study goes on to example how you can manage the transition into retirement to ensure your wellbeing is prioritized.
Some of the suggestions they had included ‘bridging jobs’. The study found evidence that wellbeing was higher for those who ‘wind down’ into retirement through bridging jobs.
One way in which some retirees manage retirement is by a gradual transition into retirement by a reduction in their hours or by taking a part-time or ‘bridging’ job. Those who take up bridge employment for enjoyment or social motivations have a greater level of life satisfaction than their pre-retirement levels. However, the life satisfaction levels upon retirement are lower for those who took up bridge employment because of financial concerns.
Another great suggestion was the importance of career reviews later in your career, which include retirement planning. This would be a great way to start adjusting your mindset to the idea of retirement and ensure when the time comes you are mentally ready for the transition.
To read the full study you can visit the What Works Wellbeing website here.
To learn more about my retirement coaching programs and the ways I can help you in your retirement plan, get in touch with me here.