Preparing for retirement

Retirement is a long-awaited goal that you will – in the truest sense of the word – work towards throughout your life. But entering this new phase of life can also trigger uncertainty.

While the prospect of more free time and new opportunities is actually something positive, financial, health, and emotional worries can dampen your anticipation of retirement. In this guide, we show you how to optimally prepare for this new phase of your life so that you can enjoy it in a relaxed and confident manner. Find out how you can best prepare and ensure an active and fulfilling retirement.

What concerns you before you retire

The fact that people can feel anxious about retirement is due to the many changes that come with this phase of life. Work plays a central role in your life, not only as a source of income, but also as a structuring factor in everyday life and as a source of social contacts. Despite careful preparations, retirement often means that you lose your familiar structures and social interactions abruptly disappear.

Frequent worries about retirement mainly relate to financial, social, and health issues.

• Financial uncertainty: You are concerned that your retirement provision will not be enough to maintain your accustomed standard of living after retirement. If you had a rather low income in your professional life and few opportunities to save up private retirement capital, you may even be at risk of poverty in old age.
• Loss of social contacts: The workplace is often an important place for social contact. This structure will cease to exist when you retire, which can lead to loneliness and social isolation. You are afraid that after retirement you will have less contact with colleagues and friends and that your social network will gradually disintegrate.
• Loss of professional identity: You define yourself strongly through your professional activity. Retirement can therefore be perceived as a loss of an important part of your identity. The result is a feeling of emptiness and disorientation.
• Health concerns: With age, the risk of physical problems increases. With the first age-related symptoms, your concern for your own health grows: What happens if you fall ill or even need care?  
• Loss of purpose and boredom: You are worried that you won’t find enough meaningful activities after you retire. Work gives many people a purpose and structure in their daily lives. Without this structure, boredom and a sense of loss of meaning can occur.

Prepare for retirement and manage financial uncertainties

The best strategy against fear of retirement is to address your concerns and take precautions. Above all, you should plan your retirement provision in good time – the sooner the better. Get an overview of the expected benefits from the OASI (Pillar 1) and your pension fund (Pillar 2) and make private provision as well. This also has a pleasant additional effect: By making regular payments into Pillar 3a, you can benefit from tax advantages and thus further increase your financial security in retirement. To this end, it is also helpful to set up an emergency fund. With the help of reserves for unexpected expenses such as medical expenses or necessary repairs, you avoid financial bottlenecks.

In addition, it makes sense to pay off existing debts before you retire as a preparatory step. This will reduce your monthly expenses and your overall financial burden. Speaking of expenses: A detailed budget plan gives you an overview of how much money you have available each month and how much you need. Take into account all fixed costs such as rent, health insurance, insurance, taxes, groceries, leisure activities, etc. A realistic budget shows you whether your expected income is enough or whether adjustments are needed.

Sound healthcare in old age

But money isn’t everything. When preparing for retirement, your concerns may often also revolve around potential health challenges in old age. Preventive measures and a conscious lifestyle are essential. Physical activity is a key component of a healthy lifestyle. Regular exercise strengthens your cardiovascular system, boosts muscle strength and flexibility, and can help control your weight. Even small measures such as walking, cycling, or swimming every day can have major positive effects on your health. A balanced diet also contributes significantly to your health. By eating fruits, vegetables, whole grains, and lean protein, you can reduce the risk of chronic diseases such as diabetes, cardiovascular disease, and high blood pressure. In addition, make sure you get enough fluids.

Nevertheless, illness can occur despite even the healthiest lifestyle. Regular visits to the doctor and check-ups can help you identify and treat health problems at an early stage. That’s why it’s important to carry out annual check-ups and specific preventive examinations in accordance with your age and individual risk factors. As part of this, you should review your insurance policies and make sure that there is adequate coverage.

10 tips for mentally preparing for retirement

In addition to financial and healthcare provision, you should not neglect mental and emotional preparation for retirement. That way you don’t need to be anxious about it and can make the new phase of your life positive and fulfilling. Try the following tips:

1. Develop new interests!
   Use the time before retirement to discover new hobbies and interests. Whether gardening, painting, traveling, or volunteering: Find activities that make you happy and make you feel productive.
2. Make new social contacts!
   Expand your network of relationships by participating in community activities or joining new clubs. This way you stay socially active and prevent loneliness.
3. Set yourself new goals!
   Define clear goals and projects for your retirement. This can be anything from renovating your home to learning a new language. Goals give structure and meaning to your life.
4. Plan your time!
   Create a flexible daily or weekly schedule to structure your time sensibly. Set aside time for hobbies, social activities, and relaxation.
5. Take care of your health!
   Maintain a healthy lifestyle to stay physically and mentally fit. Regular exercise, a healthy diet and adequate sleep are key to your wellbeing.
6. Stay mentally active!
   Keep your mind moving by learning new things, reading books, solving crosswords, playing board games, or engaging in discussions. Mental activity promotes your cognitive health.
7. Accept change!
   Be open and flexible about the changes that your new phase of life will bring. Accept that this phase of life presents new challenges, but also new opportunities.
8. Talk about your feelings!
   Share your thoughts and feelings with trusted family members and friends. Open conversations can help you alleviate your fears and find support.
9. Nurture your partnership!
   If you have a partner, talk about your plans and expectations for retirement. Joint activities and projects can strengthen your relationship.
10. Find your balance!
    Make sure to strike a balance between activity and rest. Treat yourself to breaks and enjoy the freedom that the new phase of your life offers without overwhelming yourself.