Begin by Quitting

MANY FOLKS CLAIM TO be ready for retirement, both financially and psychologically. But they’re often surprised to discover that the reality is different from what they expected.

I started planning well in advance of my 2023 retirement. I read dozens of books on the subject, and talked to many classmates and friends who’d already retired. Of all the books and videos that I reviewed, one talk on YouTube stood out: a TEDx Talk by Dr. Riley Moynes on the four phases of retirement. The four phases he identifies are honeymoon, loss of identity, trial and error, and reinvention.

Based on my observations of recent and long-term retirees in two 55-plus communities, these four phases do indeed reflect what happens in retirement. But I also think two further phases need to be added.

Phase 1: Honeymoon. New retirees start traveling to exotic places, visit long-lost friends and relatives, and splurge on expensive things. Freedom from a nine-to-five job is liberating. Decades of saving and investing provide sufficient cash flow and a big enough nest egg to make retirement feel like one long vacation.

This phase can get derailed by unforeseen events. I know many who retired during the pandemic and stayed home for a while. The retirement honeymoon can also get derailed by a sudden change in your health or your partner's, or by the need to care for elderly parents.

Moynes says that, “Phase 1 lasts for a year or so, then it begins to lose its luster. We begin to feel a bit bored, and we ask ourselves, ‘Is that all there is to retirement?’”

When I retired, I didn’t spend much time in the honeymoon phase. I was clear about what I wanted to do and got busy right away.

Phase 2: Loss of identity. This is the phase when folks start regretting that they retired. They feel the loss of their old routine, their interactions with colleagues and their identity.

Moynes says that, "Phase 2 is also where we come face to face with the three Ds: divorce, depression and decline, both physical and mental. The result of all of this is we can feel like we have been hit by a bus.”

Phase 2 is a challenge that some retirees struggle to escape. Sometimes, health issues crop up, derailing dreams of an active lifestyle.

Phase 3: Trial and error. “In phase 3, we ask ourselves: How can I make my life meaningful again?” says Moynes. “How can I contribute? The answer often is to do things that you love to do and do well.”

This is a period of trial, error and experimentation. There could be many disappointments as you figure out what works for you. You might find yourself taking classes, trying new hobbies and expanding your social network. You may also decide to downsize or move.

This is the phase I’m in now, trying out different things. My writing for HumbleDollar is one such experiment.

Phase 4: Reinvent and rewire. This is the stage where we try to get the most out of retirement. Moynes encourages us to ask, “What’s the purpose here? What’s my mission? How can I squeeze all the juice out of retirement?”

In this phase, you’re reinventing yourself to make meaningful contributions. This could be one of the happiest phases. I see retirees starting a blog, a business or a charity, or helping the needy and volunteering. There are many ways to make contributions that are deeply satisfying.

To the above four phases, I’d add two more phases to cover the entire spectrum of retirement.

Phase 5: Routine. As you get older, your energy level decreases. You pick a routine to follow every day. A daily walk, healthy eating and meeting friends become important. I see retirees enjoying the simple things in life. It’s a blessing if you can maintain good health. This is also the time to develop a plan to manage your next phase.

Phase 6: End of active life. While you can skip one or more of the previous phases, going through the end of active life is almost inevitable. Your mobility may be affected, and you may need help managing daily activities.

Even if you’ve prepared the necessary estate planning and financial documents, you must still come to terms with the fact that your time on earth is limited. The death of a spouse or a terminal health diagnosis are shocks you may need to bear. Major life changes can include moving closer to children or to a continuing care retirement facility.

I’ve been lucky so far. The future, however, is impossible to predict—and no doubt many challenges lie ahead.

Sundar Mohan Rao retired after a four-decade career as a research and development engineer. He lives in Tampa in a 55-plus community. Mohan's interests include investing, digital painting, reading, writing and gardening. Check out his earlier articles.

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