The journey from retirement blues to bliss

Retirement is arguably the most important issue in the financial-planning space for most individuals. Articles and videos on this topic draw maximum hits on our website and our YouTube channel. But our coverage, like elsewhere, mostly revolves around the financial aspect of retirement. The big issues concerning the impact of inflation and the risk of outliving one's savings are usually at the heart of the discourse.

However, there is something else which is equally important, if not more. It is the psychological dimension of retirement. I believe serious followers of this publication, or more broadly of Value Research, would be financially well-prepared for their golden years. So, let me focus on this less-discussed aspect in this column.

I spent a good part of the previous month dealing with a medical emergency at home. The long hours I spent beside my recovering mother allowed me to dig deeper into the non-financial dimension of retirement. That's when I came across this brilliant Ted Talk delivered by Dr Riley Moynes. Based out of Canada, Dr Moynes is a former (now retired) financial advisor and a best-selling author. His views are based on dozens and dozens of interviews he has conducted with retirees about their experiences.

Dr Moynes contends that most people don't know what they are getting into but through his work, he attempts to prepare you for what to expect in retirement. Listening to him can be a great first step towards a fulfilling retired life instead of a lonely, unhappy one - "squeezing all the juice out of retirement," as he puts it.

He talks about the four phases that one is likely to pass through in retirement. Phase one is what he calls the 'vacation phase' when you finally break the shackles of a routine and experience new-found freedom. This is what most of us visualise our retirement to be like - a state of liberation! But soon enough, it leads you to boredom and a sense of void. In addition to a routine, you yearn for your lost sense of identity and purpose. This is the start of phase two and is the most difficult one to deal with.

Phase three begins when you decide to pull yourself out of this state of despair. This is the phase when you try different things to make your life meaningful again. You set out to discover something that makes you look forward to the next day. It is when you try, fail and try again... until you hit upon something that rekindles your sense of purpose and accomplishment. That's when you enter phase four and that's when you squeeze all the juice out of retirement! Not all make it till here but those who do are among the happiest people you can find, according to Dr Moynes.

His talk, distilled from his interactions with hundreds of retirees, does a great job of explaining what to expect. But is there something you can do to prepare for it? Can you eliminate, or at least cut short, the rather depressing second state to hasten your progress to phase four?

Well, I guess the answer lies in trying and experimenting with alternate pursuits before entering into retirement. Even as you remain productively occupied with your mainstream work, find time to try your hand at something that keeps you meaningfully engaged well after you hang up your boots. It can be a hobby, a blog, an initiative to teach what you are good at or even a social cause. The idea is to sow the seeds of something that can keep your sense of purpose alive long after your working years.

In my circle of reference, I see retirees who did well professionally but did little else. Money may not be an issue post-retirement but the lepers in their heads may run riot. Some are stuck in phase two and, unfortunately, may remain there for the rest of their lives. The irony is that for those who do well professionally and rise the ranks, the abrupt loss of power can be that much more hurtful.

In the Indian context, I believe that the current generation of retirees will be the hardest hit by the shifting family systems in the country. They grew up and lived a significant portion of their lives in the hustle and bustle of a joint family. But increasingly, with their children moving out or settling elsewhere, they are staring at the prospect of an empty nest, living a lonely life in their sunset years, something that is alien to them.

The disenchantment can spread to the younger generation too, those who aspire to be 'financially independent to retire early' (FIRE, as they like to call this life goal popularly). While I think it's a great goal to have, and many of those whom I know will even be able to achieve it financially, problems lie at a deeper level. Talking to them, I get a sense that they haven't thought hard enough about what they will do with their spare time. That's a red flag. Don't think about retiring early till you have figured it out. It's difficult to shake off retirement blues even if you are financially fortified.

Clearly, retirement presents tough psychological challenges. Preparing for them beforehand, just as you do financially, is better than leaving them for later.

For those serious about it, Dr Moynes' Ted Talk is a must-watch. Search for 'The 4 phases of retirement Dr Riley Moynes' on YouTube to check the video. He also runs a podcast series where he interviews phase-four retirees. Watch it to get inspiration from their real-life stories. I haven't had a chance to listen to all of it but I found the conversation with Allan Alls, a former Air Canada pilot, very interesting and heartening.