Retirement planning fails many people who only think about money. A quarter to a third of retirees face “retirement syndrome”—a mix of depression, anxiety, and lost sense of purpose—even with adequate savings.
Recent surveys reveal a striking contrast. While 77% of retirees say they have enough money to live comfortably, just 43% have considered their emotional wellbeing after retirement. This gap shows a critical flaw in standard retirement income strategies.
Many people spend years building their financial portfolios but never plan what they’ll actually do with their time. Smart retirement planning extends far beyond the financial realm. It should cover health, relationships, hobbies, location, and spiritual growth.
Expat Wealth At Work offers practical retirement planning strategies that balance financial security with lifestyle satisfaction to help you create a truly rewarding retirement.
Why Most People Get Retirement Planning Wrong
People often miss what really matters when they plan for retirement. Their plans fall short in three areas that can substantially affect their retirement satisfaction.
They focus only on money
Many soon-to-be retirees think retirement planning is just about investing. Deciding how to invest savings matters, but other decisions can mean more to your financial security. The fixation on building wealth overshadows vital decisions like choosing where to live, timing Social Security benefits, and securing medical insurance. This narrow view misses a simple truth – having more retirement income doesn’t mean greater happiness once you have enough for your lifestyle. Many retirees end up with healthy savings but feel lost about what to do in their post-career years.
They delay planning until it’s too late
Late retirement planning creates major headaches. Research shows 40% of people between 50-64 who have defined contribution wealth don’t know how they’ll use this money. The numbers look worse—73% of people in their late 50s haven’t seen any pension or retirement information in three years. This lack of preparation can get pricey. Two-thirds of men nearing retirement underestimate how long a 65-year-old man typically lives. So they don’t save enough for what could be a 30-year retirement or longer.
They underestimate emotional and social changes
Many people are unprepared for the mental shift into retirement. Twenty-five percent of retirees experience a decline in their mental well-being during their first year of retirement. People struggle with their identity after spending decades in clear professional roles. Retirement also breaks workplace friendships, which leads some people toward isolation and unhappiness. Without purpose beyond their old work identity, retirees often feel useless and lost.
These common mistakes show why retirement planning needs a detailed approach that builds both financial security and personal fulfilment.
What Retirement Planning Should Really Include
Retirement planning extends far beyond the scope and impact of financial spreadsheets. Latest research reveals that 74% of people plan their finances for retirement, yet only 35% remain ready emotionally for this big life change. This gap explains why many retirees face challenges despite having enough savings.
Lifestyle vision and daily routines
A detailed vision of your post-work life improves retirement planning work. You need to think over how and where you’ll spend your retirement years. Would you prefer to stop working immediately, or would you like to transition into retirement gradually? Your living situation matters too – downsizing or moving to a place with better weather, lower costs, or closer to family could be options. Your daily schedule needs attention to avoid the confusion many retirees face. Experts say you should picture or write down your planned activities for mornings, afternoons, and evenings. This simple exercise helps you see a meaningful routine after work life ends.
Emotional and psychological preparation
Retirement brings about a fundamental shift in identity, often surprising many people. It is like standing at the edge of a cliff, staring into a void. Developing purpose beyond your career helps tackle this anxiety. 58% of adults over 40 worry about retirement, and 18% experience sleeplessness due to this concern. To work through this, identify what makes you most anxious about retirement, then recall how you dealt with it before.
Social connections and relationships
Your retirement satisfaction depends heavily on strong social connections. Studies show that older adults who stay isolated face bigger risks of heart disease, depression, and cognitive decline. Work friends often drift away after retirement, so you’ll need to build new relationships actively. Married couples face their challenges as both partners direct their lives without work schedules. Take time with your partner to discuss personal and shared goals for this new chapter, then add activities you both like to your routine.
Health and wellness considerations
Successful retirement’s foundations include Physical and mental well-being. Almost 80% of adults over 65 live with at least one chronic health condition. Regular exercise improves your health and releases endorphins that reduce anxiety. Brain-challenging activities like learning new skills help keep your memory sharp. Your healthcare budget needs careful planning. Today’s 65-year-old retiree might spend around 135,000 euros on healthcare during retirement.
How to Start Planning the Right Way
Your retirement experience needs a well-laid-out approach that focuses on personal fulfilment beyond financial milestones. This practical framework will guide your planning process:
1. Define your core values
Your first step should be to identify what truly matters to you. Think about values like family, security, freedom, or philanthropy that will shape your decisions. Research shows that understanding these values gives context to retirement goals and helps arrange financial decisions with core beliefs. The Values Card Exercise expedites the process by helping you identify and prioritise values that resonate deeply, ultimately leading to identifying your top five.
2. Visualize your ideal retirement day
Imagine a typical day in retirement. Your morning routine, activities, environment, and companions matter greatly. Visualisation helps define goals and keeps motivation high. Paint a detailed mental picture—will you sip coffee with mountain views or walk through bustling markets? These images will guide your financial choices effectively.
3. Identify your purpose and passions
Purpose drives wellbeing. Studies show retirees without purpose have fewer social connections and declining health. Skip arbitrary bucket lists. Focus on activities that energise you, and let’s make a difference. Your passions and true fulfilment should lead the way.
4. Test your ideas with trial runs
Test your retirement vision before fully committing. “Low-stakes experiments” lasting 4–6 weeks come with no pressure to continue. Live like a local in potential retirement spots during vacations instead of being a tourist. Your retirement budget needs testing while you still work to prove it’s realistic.
5. Create a lifestyle-aligned budget
A complete budget should support the lifestyle you plan to have in retirement. Essential expenses (housing, healthcare) and fun spending (travel, hobbies) need careful planning. Each financial decision will move you toward your retirement vision. It is advisable to review this budget annually, as your dreams may evolve.
Integrating Lifestyle with Financial Planning
Your retirement dreams should shape your financial strategy, not the other way around. A complete plan that blends lifestyle dreams and financial realities will help you achieve better retirement outcomes.
Why your lifestyle should guide your financial plan
Most traditional approaches start with numbers and then work backward to determine which lifestyle those figures can support. Research shows that beginning with your desired lifestyle leads to greater satisfaction in retirement. Your unique vision—whether you want to travel, pursue hobbies, or spend quiet time with family—creates the framework for your savings needs. This tailored approach means your financial decisions reflect what matters most to you, which reduces anxiety about retirement transitions.
Adjusting savings goals based on lifestyle needs
You need approximately 75% of your pre-retirement income to maintain your current lifestyle during retirement. This percentage changes depending on your specific vision for retirement. Your savings rate might need to increase if you dream of extensive travel or expensive hobbies. A simpler retirement plan might allow you to retire earlier with less money saved. Are you concerned about planning for retirement? Expat Wealth At Work Can Help You Plan With Confidence! Our tailored approach will align your financial strategy with your lifestyle dreams.
Planning for travel, and hobbies
A typical vacation for two people costs approximately EUR 3,799.66. Retirees usually set aside EUR 9542.10 to EUR 47710.51 each year for travel. Hobby costs vary significantly. Birdwatching binoculars range from EUR 190.84 to EUR 477.11, while a fishing boat could cost more than EUR 23855.25. Retirees often choose boating, golf, fishing, photography, and gardening. People over 65 spend EUR 57335.62 on average each year. Smart budgeting for these activities helps maintain financial stability and lifestyle satisfaction throughout retirement.
Conclusion
A successful retirement needs a different perspective. This article shows how focusing only on money leaves retirees with full bank accounts but empty lives. Money matters, but it’s just one part of the retirement puzzle.
Your retirement’s success depends on how well you prepare for lifestyle changes, emotional shifts, social bonds, and health needs. Many retirees don’t deal very well with these elements. Even with sufficient savings, 25–30% of retirees face “retirement syndrome”.
Start by understanding your core values and imagining your ideal retirement lifestyle. These basics help you arrange your financial choices with what matters most to you. You can then find meaningful activities and passions that bring joy to your daily life.
Try out your retirement plans before making final decisions. This practical step helps avoid making pricey mistakes and builds trust in your strategy. On top of that, a budget that supports your planned lifestyle will give every financial choice a purpose beyond just saving money.
Note that retirement planning works best when lifestyle goals guide your money decisions. Your personal vision should shape how much you save and where you put your money. This could mean focusing on travel, family time, creative work, or helping your community.
Retirement is one of life’s most significant changes. Many people feel uncertain about it. Detailed planning turns this uncertainty into excitement about new possibilities. Time spent on planning beyond just finances brings decades of purpose, connection, and satisfaction during retirement.
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