Planning for Life After Retirement: 5 Things to Consider
Retirement is a life transition that is a choice for some but forced upon others. This means that the amount of control we have over the timing of our retirement will impact life afterward (Moody & Sasser, 2020).
For those who love their work and can offer their knowledge and skills past their country’s mandatory retirement age, retirement might be partial or postponed.
For others in more manual, physically demanding occupations, mandatory retirement is often a legal requirement to maintain the health and agility of the workforce. Therefore, planning for life after retirement differs across the same age group (Drak, 2021).
Retirement dates also differ across the world, and some countries have different retirement ages depending on occupation. Retirement ages range from 55 in some Asian countries for more manual and physically demanding occupations to 67 for all occupations in the United States, United Kingdom, Norway, and Iceland (Khan, 2023).
Taking all this into consideration, a rough global average retirement age covers what is called the “third age” of 55 plus (Applewhite, 2016; Drak, 2021), as people with private pensions can also retire and draw down their pensions from 55 onward in most countries with a later state retirement age.
Planning for retirement is a critical process that involves psychological, financial, and personal preparation. You can plan ahead for retirement by considering the following five factors to support personal fulfillment and peace of mind.
1. Psychological preparation
Transitioning to retirement entails changes to our sense of identity, purpose, income, daily routine, and social connections. When preparing for retirement, it’s important to reflect on how work has provided you with a sense of purpose, meaning, and connection and how you can replace work with other activities.
In the years leading up to retirement, it is beneficial to interact more with friends outside of work, extended family, or community groups (Drak, 2021; Robertson, 2020).
Staying mentally active through continued learning is also helpful for staying stimulated and motivated later in life. The University of the Third Age, or u3a movement, has been set up for just that purpose in various countries around the world. It doesn’t entail formal education but skills and knowledge sharing between those free to learn for its own sake.
When you have prepared yourself for the changes ahead, there are further things to consider.
2. Lifestyle planning
Lifestyle planning involves deciding how to spend all your extra time. Retirement provides an opportunity to do many things you didn’t have time for before, including traveling, pursuing old interests and new hobbies, and making new friends (Burnett & Evans, 2016).
Lifestyle planning can also provide extra financial freedom after retirement. When people have raised a family, downsizing the home and moving to a more affordable area can release funds for investment in other things.
Aging in place may be the best option for those with smaller homes or sufficient retirement income to fund their interests without downsizing. Lifestyle planning depends on your unique circumstances and personal values (Druk, 2021; Robertson, 2020).
3. Financial planning
Financial planning for retirement will vary from person to person, and potential provisions will differ according to your country of residence and citizenship, as some countries provide state pensions that are much higher than others, while some provide nothing at all (Anthony, 2008; Druk, 2021).
Income sources could include state and private pensions, savings, social security, passive income from investments, property rentals, and share dividends.
Finally, employment or self-employment remains an income source for those who retire and carry on working, especially if their work or business is something they love doing.
4. Health care
Health care costs again vary according to your country of residence or citizenship. Some countries provide government-funded health care with free prescriptions, while others require citizens to have private health insurance and/or pay for their medicines (Anthony, 2008; Druk, 2021).
Some people prefer to work with privately funded alternative health care professionals such as naturopaths, functional medicine practitioners, and other types of holistic therapists. It’s worth factoring in these costs if you have a long-term condition that needs some maintenance from complementary medicine practitioners or therapists.
Long-term care insurance that covers nursing homes, assisted living, or in-home care is worth considering. Some people may wish to consider making a living will that outlines their preferences for long-term and end-of-life care. Making a living will ensures you get the type of care you want should you become incapacitated for any reason (Age UK, 2025; Anthony, 2008; Druk, 2021).
5. Support for family and dependents
Discussing retirement plans with your partner and wider family can clarify mutual expectations and responsibilities. For example, assigning power of attorney to a loved one can help protect your rights should you become ill or need long-term care (Druk, 2021).
Finally, estate planning, like creating or updating your will and any trusts, is a good idea before you retire, for wealth distribution or tax advantages.
Retirement planning around these five factors will help you transition into the next stage of your life with clarity and peace of mind.
Or you could always start again like Paul Tasner, who became a successful entrepreneur at 66. Age really is just a number.