Retirement: More than just your financial wellbeing.

Are you prepared for retired life?

As you approach your golden years, the emphasis on financial preparation for retirement tends to take center stage. But amid the planning for savings, investments and pensions, there's an essential component that’s often overlooked: your mental health. Preparing for financial health during retirement is important, but so is preparing your mind. Research from an October 2022 AARP study found that 57% of retirees and 41% of nonretired adults never thought about planning for their emotional needs when they stopped working.

As you reflect on the past year and look forward to what’s in store for 2024, take a moment to think about your purpose in retirement and consider the tips below as you embark on this new journey. And, if you’re looking for additional resources or some light reading, we had the opportunity to speak with some of our CommercePremier Bankers, who had insightful literature to recommend.

Your mental health is just as important as your financial health.

It’s not uncommon for new retirees to suddenly feel like they’re steering a boat without a rudder. A June 2022 Forbes Health survey of more than 1,000 recent retirees showed nearly a third of respondents said they wished they’d kept working longer in their careers, and another 32% admitted they didn’t feel well prepared for the day-to-day realities of retirement. Because retirement often means taking a step back from the built-in stimulation and interaction that work provides, many become susceptible to cognitive decline.

According to the American Psychological Association, the key to a smooth retirement is tending to your psychological portfolio just as much as your financial one. Although financial security is critical, your retirement is more than just money in the bank. Use these tips to help stockpile your emotional reserves and work toward your wellbeing in retirement.

6 ways to prioritize your mental health during retirement.

• Stay connected: It’s important to avoid social isolation and maintain your relationships; thinking about how you’ll want to fill your days needs to include the people you’ll be spending time with. Harvard Business Review notes that there’s no better place to start than home: spending time with your friends and family. The Harvard Longitudinal Study illustrates that close personal relationships—more than money or fame—are what keep people happy.

  Joining social clubs is another good way to expand your social circle to connect with fellow older adults. Clubs can help you stay connected, grow your network and remain active. The National Institute on Aging notes engaging in social activities helps maintain your wellbeing and independence as you age. An active lifestyle is more than just getting your steps in—it also includes doing activities and engaging with others in a way that brings meaning to you.

• Explore your passions: Have you always been wanting to take that dream vacation, but there never seemed to be a good time between your career and family obligations? Now just may be the right time to start checking items off your bucket list.

  Not sure where to begin? Talking to your friends and family, researching what courses (such as through a local university or craft studio) may interest you, speaking with a life coach, and simply paying attention to what you do or think about are all good places to start. It’s important to keep an open mind as well; now is your time to explore and try new things that you may not have previously had an opportunity to do before.

• Find purpose: Finding meaningful activities to fill spare time can be a challenge. If you haven’t already, make a point to engage yourself with undertakings that can provide both a sense of belonging and bringing value as well as access to new relationships. Volunteering, for example, is a great way to get involved with a cause you’re passionate about and feel a sense of purpose of giving back. It can also open doors to new relationships with individuals who share similar interests.

  Similarly, many retiring executives take on part-time or interim employment as consultants or board members for companies or nonprofits. This can be another way to stay connected with former colleagues and avoid social isolation after leaving the workplace full time. Mentorship can be a rewarding experience to share your knowledge and help others jumpstart or evolve their careers and passions. Remember though: earnings may impact your taxable income, Social Security benefits and other factors. Be sure to consult your tax professional.

• Find your happy place: If you’re planning to relocate, identify elements of your lifestyle you’d like to embrace during your retirement, such as whether you’d prefer to live in a walkable area with plenty to do versus the peace and quiet of a more rural environment. Or perhaps you’ve always wanted to spend your golden hours on a beach somewhere tropical. Whatever your goals, it’s important to start thinking of where you’d like to be during your retirement.

  With the rise in hybrid or remote working environments, some may choose to relocate prior to fully retiring. In some instances, this can also have positive financial benefits. AARP notes that pre-retirees who relocate to lower-cost states or countries may find substantially cheaper housing and can reinvest the savings into their financial portfolio. If you’re still working, you may only need access to high-speed internet to work remotely, but you can start enjoying some of the benefits of retirement sooner.

• Get your emotional and financial plans in sync: You already know that saving regularly and knowing when to start Social Security benefits are critical components of a financial health during your retirement, but according to AARP, financial and psychological planning go hand in hand. No two retirees are alike, and that goes for your emotional wellness just as much as your financial wellness. Be sure to talk with both your primary care physician as well as your professional financial team about ways to potentially address your concerns.

• Prioritize getting help: If you find it hard to cope with retirement, you’re not alone. Don’t hesitate to seek help from loved ones or professional experts. For many, leaving the workforce can strip away a sense of purpose and self-worth. These “retirement blues” can quickly become a downward spiral of isolation and depression, and it’s important to avoid becoming stuck in a dark place. According to WebMD, how you view this transition could be different based on gender: While women tend to have a more positive outlook, men often feel a sense of loss. Research from the University of Michigan shows 28% of retirees suffer from depression, a substantially higher rate than for the older population at large.

  If you suspect you or your loved one’s cognitive health is declining, speaking with your primary care physician is a good starting point. Your doctor can help evaluate the cause and provide solutions. If memory loss is interfering, getting a referral to a neurologist can help.

Insightful resources from CommercePremier Bankers.

Planning for—and navigating—the financial and mental aspects of retirement can be a tricky process. We had the opportunity to sit down with some of our CommercePremier Bankers to discover which money management resources they recommend and why.

Karen Favor, Affluent Consumer Strategy Manager

• Afterwork, by Porter Shimer: This book delves into the psychological and emotional aspects of post-employment life, shedding light on the mental health considerations that accompany retirement. The book offers guidance on finding purpose, maintaining social connections and embracing a fulfilling lifestyle after leaving the workforce, addressing key elements that contribute to a positive mental wellbeing in retirement.
• The Joy of Not Working, by Ernie J. Zelinski: Zelinski provides a guide for the retired, unemployed and overworked. The book advocates for a shift in mindset regarding work and retirement, emphasizing the importance of leisure and personal fulfillment. By encouraging readers to embrace a more relaxed and purposeful life, the book fosters a positive mental outlook, promoting a sense of contentment and wellbeing during your retirement years.
• Purpose and Power in Retirement, by Harold G. Koenig: This book can help you find new opportunities for meaning and significance. Koenig addresses the crucial connection between having a sense of purpose and mental wellbeing during retirement. It explores how cultivating a meaningful post-career can positively impact mental health, providing insights and practical guidance for retirees seeking fulfillment and purpose in their later years.
• Retirement Stepping Stones, by Tony Hixon: This book can help you find meaning, live with purpose and leave a legacy. Hixon offers a holistic perspective on retirement planning, emphasizing the significance of mental and emotional wellbeing throughout your transition. By guiding readers through practical steps and mindset shifts, the book supports a positive mental health trajectory during retirement, helping you navigate the challenges and opportunities that arise during this significant life stage.

Jacob Newman, CommercePremier Banker

• Start With Why, by Simon Sinek: While not necessarily about finance, Newman feels this is the best motivational book he’s ever read. In order to succeed at anything, you need to find out why you’re doing it. Then push yourself from there.
• Ride of a Lifetime, by Bob Iger: One of the core elements that Iger attributes his success to is taking the best advice from the best people. You’re never going to know everything about every topic, but you can rely on people who know and then apply that advice to your life.
• Make Your Bed, by Admiral William McRaven: This book is all about doing small things that can add up to major changes. For finance, this could mean brewing coffee at home instead of buying it at the coffee shop to save a bit extra for retirement. Those little things can add up to quite a bit of savings over days, weeks, months and years. The same principle can be applied to preparing yourself mentally for retirement. Making small steps now can add up and promote overall wellbeing when you retire.

Jacob Newman, CommercePremier Banker

• Know Yourself, Know Your Money, by Rachel Cruz: This book explores the psychological underpinnings of personal finance, offering insights that extend to mental health considerations. By delving into the emotional aspects of money management, the book equips you with the self-awareness necessary to navigate financial decisions in retirement with a sense of control and wellbeing.

Getting the most out of your golden years.

The transition into retirement unveils a necessity for not only prioritizing your financial health, but also your mental wellbeing. While financial security undoubtedly lays a crucial foundation for a comfortable retirement, it’s merely one aspect of the broader equation. Your mental health plays an equally pivotal role, shaping the overall quality of your post-career life. Recognizing and addressing both aspects will help to foster a fulfilling and purposeful second act, where you can truly savor the fruits of your lifelong endeavors. Your trusted CommercePremier Banker can help guide you and connect you with financial professionals to assist during your journey.