After all the planning, dreaming, and meeting with financial advisors, retirement finally comes — and with it, the realization for many that they aren’t mentally prepared.“We don’t pay attention to our psychological portfolios,” says Nancy K. Schlossberg, professor emerita at the University of Maryland and author of Revitalizing Retirement. The phrase “psychological portfolio” describes the essence of the emotional issues related to retirement. All of the reallocation of investment accounts in the world can’t prepare us if our mental state about life in retirement isn’t balanced too.Losing to GainRetirement brings vast amounts of time and the freedom to decide how to spend it. Sounds dreamy, but the reality may feel uncomfortable. Schlossberg says retirees may:Lose their identity. When Schlossberg tells people she was a professor, for instance, it evokes a certain image. “When you’re retired, who are you? What’s your tag line?” she says. “Everybody talks about a loss of identity.”Lose their purpose. For many, their work life was their life. Each project gave them a new goal. Retired without a plan, they may ask, “What now?” “We need a mission and a purpose,” Schlossberg says.Lose relationships. Missing work friends can take its toll. “Whether you were a roofer or a CEO, those [work-related] relationships are important,” Schlossberg says. Family relationships change too. Some retired grandparents tell Schlossberg they feel drafted into babysitting service for grandkids when they would actually rather travel the world. Others may wish they could spend more time with adult children whose busy lives may not include them as often.The reality of the day-to-day without a workplace to report to may induce rash decisions, such as starting a new business without thinking it through or a cross-country move to be near kids when finances can’t handle such a dramatic, unexpected decision. On the other end of the spectrum, indecision about how to spend those retirement days can lead to boredom, indifference, even depression — tarnishing the golden years.But a little reflection and planning can stave off that scenario.Plan for More Than FinancesCatherine Collinson, president of the Transamerica Institute and Transamerica Center for Retirement Studies, says workers often delay planning for retirement due to anxiety and fear. She talks retirement all the time. In the grocery store line. On crosscountry flights. Around the dinner table with friends.One reluctant-to-plan pal even told her, in all seriousness, “With global warming, I am convinced the world will burn up before I reach retirement age.”Talk about a lame excuse. “Do you prefer doomsday over retirement planning?” Collinson asks, laughing.A retirement and market trends expert, Collinson oversees the Annual Transamerica Retirement Survey, which found in 2014 that generational differences exist when it comes to planning:65 percent of baby boomer workers, hit hard by the Great Recession, plan to continue working past age 65 or do not plan to retire.54 percent of Generation X also plan to work past 65.Most millennials (60 percent), however, plan to retire at 65 or sooner.When will you retire? (graphic here) Even if workers see the benefits of financial planning for their futures, many neglect serious contemplation about how they’ll spend their days. “Additional time to enjoy life and generate income on our own terms is a glorious proposition,” she says. But as a 50-something herself, she’s watching her own friends discover the realities of this major life change. “They’ve been talking about retirement, but now that it’s here, they’re deer in the headlights. It’s overwhelming, especially for those who have invested in their career.” Like Schlossberg, she says the loss of identity can hit hard. “And people who have been successful may have a harder time,” she adds.Strategies for Successful TransitionTo avoid an identity crisis and mental anguish, Collinson offers tips that comprise a to-do list for prospective retirees:Dream big. Collinson said she hears this sentiment often: “If I retired today, I’d be working until I’m 150.” Meaning just because one retires, doesn’t mean they won’t have plenty to do in their newly found freedom. People envision rich and productive lives. Novels to write. Places to go. Projects to start and finish. “Dreams are fantastic as a motivator for what we can do when more time is our own,” she says.Start a hobby now. Don’t wait until retirement to take up painting or mentoring kids. Fostering hobbies during your career can forecast your future in retirement. “Keep imaginations fueled now,” Collinson says. Redefine retirement age. “65 is just a number,” Collinson says, adding that when it was chosen, people weren’t regularly living into their 90s.Redefine retirement age. “65 is just a number,” Collinson says, adding that when it was chosen, people weren’t regularly living into their 90s.Invest in yourself. Dole out dollars to a 401(k) and perhaps the stock market, but also invest in continuing education and skills that will keep you relevant as a worker in decades to come. Collinson urges employees to keep up with trends and requirements in their fields. From community college classes to online courses and even iTunes U lectures, seek inspiration about your field and others.Do a trial run. You may think you want to join the Peace Corps or sail the world in retirement, but test these adventures to make sure. Collinson once envisioned a future working with povertystricken people in remote parts of the world, but a weeklong volunteer project showed her that — as rewarding as it was — the lifestyle wasn’t for her. Not only did she contract a bug that took months to fully recover from, she also realized that contributing funds instead for a day’s work to pay locals might help alleviate the region’s high unemployment rate.Look at the numbers. According to the Transamerica Retirement Survey, 50 percent of workers have guessed at how much they will need to save. Just 11 percent have used a retirement calculator or completed a worksheet. Collinson urges workers to use those online resources — even three or four different retirement calculators — to bring a retirement savings goal into focus. “Often, the unknown can be the scariest thing of all,” she says. “Transform unknowns into knowns.”Take baby steps. “Carve out an hour every Saturday. Talk to family. Do some brainstorming,” Collinson says. You don’t have to establish a retirement plan in one mad dash over a long weekend.Don’t Cash InWhen money becomes an issue during retirement, it may be tempting to call upon the cash value in a Universal or Whole Life Insurance policy. Don’t do it.Justa Stephens, a Texas Farm Bureau Insurance Agent in the Fair Oaks Ranch office, urges members to use their life policies as intended. It may be tempting to access the cash that’s built up over the years, but Stephens tells of a member she knows who owes $12,000 in fees from loans taken from a universal life policy and not repaid. That’s not the financial legacy you want to leave your survivors.If you need help planning for the future and setting up your estate beneficiaries, Stephens suggests taking advantage of the free estate planning services offered to Texas Farm Bureau Insurance Members. You can ask your agent about meeting with an advisor.Coverage and discounts are subject to qualifications and policy terms, and may vary by situation. Life insurance products are offered through Southern Farm Bureau Life Insurance Company. Ⓒ2014 Texas Farm Bureau Insurance
