Retirement anxiety is common, but some simple steps may help establish a smart financial strategy and ease retirement anxiety symptoms.1
What are sources of retirement anxiety?
Running out of money. To alleviate concerns, consider using a good retirement calculator or consulting with a financial advisor. Projections should include all sources of retirement income like Social Security, pensions, rental and portfolio income and perhaps a part-time job.2
Increasing inflation. One option that may help reduce the impacts of inflation is a Treasury Inflation-Protected Security (TIPS), a treasury bond tied to an inflationary index. The principal increases with inflation and decreases with deflation. At maturity, the bond pays the greater of the adjusted or original principal.3
High healthcare costs. Consider saving toward future medical bills by opening and funding a health savings account. Health savings accounts carry tax savings and allow money to cover medical costs tax-free, but can only be funded before enrollment in Medicare at age 65.4
Stock market crashes. A conversation with a financial advisor about risk and balancing portfolios accordingly between investment in stocks, bonds and even cash, may be comforting.5 A well-diversified portfolio may make some retirees feel more confident. One rule of thumb cited by investment advisors is to calculate a percentage of invested assets that’s equal to 110 minus one’s age in equities (stocks), with the remainder in bonds and cash equivalents.6
Children moving back home. Some solutions include creating a plan in which children cover their own expenses and contribute to household expense and savings accounts. It may also be helpful to create an exit plan and set a date.7
Taking Social Security at the wrong time. Social Security benefits can begin as early as age 62. The full amount will be available at full retirement age, which varies according to the claimant’s birthday. A maximum amount is available by waiting until age 70 to begin receiving benefits. Spousal benefits may also be available, which can equal as much as half of a spouse’s or ex-spouse’s Social Security benefit. A financial advisor may be helpful when discussing different scenarios.8
Too much debt. Financial advisors strongly suggest having a debt payoff plan. They recommend getting rid of mortgages, car loans and credit card debt before retiring, to help reduce liability and increase the percentage of income available in retirement to meet essential needs.9
Why is retirement so stressful?
Some people consider retirement to be simply a financial event and give thought only to planning for those aspects of this major life change. In so doing, they may overlook the psychological impact of retiring from work.10
Some common challenges include:11
- Struggling to “switch off” and relax, especially early in retirement.
- Adjusting to having more free time, but less money to spend.
- Loss of identity as a professional, tradesperson or worker.
- Feelings of isolation if the workplace was a primary source of social interaction.
- Anxiety about how to fill the extra hours with meaningful activity.
- Feeling less useful, important, self-confident or independent.
- For couples, adjusting to more shared space and alteration in accustomed rhythms.
4 ways to adjust to retirement
Embrace change. Attitude adjustments are key. Think of retirement as a journey, rather than a destination. Focus on gains instead of losses. Acknowledge emotions and accept them, knowing most will soon pass. Accept what can’t be changed, set new goals for those things that can, and find new identities, such as mentor, volunteer, grandparent, student or artist.12
Find new purpose and meaning. Look for new sources of meaning, including potentially a gradual transition to full-time retirement or part-time work. Nurture hobbies by joining a club or team, taking a class or finding volunteer opportunities that align with old passions and interests. Retirement might be a good time to learn something new, like a musical instrument or second language. Some retirees enjoy the companionship of a pet and the sense of usefulness and purpose in taking care of a beloved animal.13
Manage stress, anxiety and depression. After retirement, workplace stressors may give way to different sources of anxiety such as managing on a fixed income, coping with health concerns or adapting to changed spousal relationships. Consider adopting a relaxation practice like meditation, yoga or tai chi. Physical activity may be an effective way to relieve tension, in addition to practicing gratitude and spending time in nature.14
Look after your health. Any stressful situation may impact health. Retirement, like any major life transition, is stressful. Retirees may want to pay extra attention to bolstering their physical and mental health by getting good quality sleep, eating a healthy diet and finding ways to keep the brain stimulated. Seniors may want to add structure to the day by replacing work routines with a daily schedule that supports new interests, needs and aspirations.15
Retirement anxiety is normal, which means retirees won’t have to face these challenges alone. Staying socially connected, especially to friends who are retired or are approaching retirement, can be a means of sharing the burden, as well as sharing tips about what helps. Some larger corporations have retirement planning assistance or transition workshops, and similar programs may be available at local community centers. Community organizations may also offer support groups for older adults transitioning into retirement.16
Regardless of the circumstances, retiring from work is a major life change that brings challenges as well as benefits. Some studies have linked retirement to a decline in health, but there are healthy ways to adjust to this new chapter, alleviate retirement anxiety, and ensure a happy and rewarding life after work.17
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Sources:
1Rachel Hartman, “Common Retirement Financial Fears and How to Overcome Them,” US News and World Report, last accessed September 27, 2022,
2Hartman, “Common Retirement Financial Fears and How to Overcome Them.”
3Hartman, “Common Retirement Financial Fears and How to Overcome Them.”
4Hartman, “Common Retirement Financial Fears and How to Overcome Them.”
5Hartman, “Common Retirement Financial Fears and How to Overcome Them.”
6Paula Pant, “Retirement Planning in 6 Easy Steps,” The Balance, last accessed September 27, 2022,
7“Common Retirement Financial Fears and How to Overcome Them.”
8“Common Retirement Financial Fears and How to Overcome Them.”
9“Common Retirement Financial Fears and How to Overcome Them.”
10Lawrence Robinson and Melinda Smith, “Adjusting to Retirement: Handling the Stress and Anxiety,” HelpGuide, last accessed September 27, 2022,
11Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
12Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
13Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
14Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
15Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
16Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
17Robinson and Smith, “Adjusting to Retirement: Handling the Stress and Anxiety.”
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