Stages of Retirement

Famed researcher Robert Atchley, in the early 1970’s described a six stage process of retirement which included, pre-retirement, retirement, contentment, disenchantment, reorientation and routine.

https://www.theretirementmanifesto.com/the-4-phases-of-retirement/

Phase I:  Vacation Phase

Phase I is the initial phase experienced in retirement often referred to as the “Honeymoon Phase.”  In this phase, retirement feels like a vacation.  “There is no set routine.”  For most people, this phase represents “their view of an ideal retirement.  Freedom, Baby!”  For most folks, “Phase I lasts for a year or so, then it begins to lose its muster…we begin to feel a bit bored…and we ask ourselves, “Is that all there is to retirement?”

How Best To Prepare: 

  • Embrace your Freedom and enjoy it.  You’ve earned it.  Realize, however, that the honeymoon won’t last. 

  • Prepare yourself emotionally for the reality that you have not yet settled into retirement.  In time, you’ll be doing some personal reflection. 

  • You’ll soon realize that there’s more to retirement than a permanent vacation, and it will take some time to work through the next few phases before you settle into your “real” retirement lifestyle.

Phase II:  Lost & Loss

While everyone experiences Phase I, an interesting thing happens with Phases II and II.  While some retirees struggle and “get stuck” in these phases, others can avoid them entirely (Riley cites that 10-15% of retirees skip these phases, which was also, fortunately, my experience).

Phase II is the most challenging of the phases of retirement, and a dangerous phase that some retirees struggle to get out of.  Riley cites the following characteristics of Phase II:

How Best To Prepare: 

  • The question that comes to my mind is, “What’s the difference between the 10-15% of retirees who skip Phase II and the 85-90% who don’t?”  Given I was in that 10-15%, and have spent years researching and writing on the topic, I think I know the answer. 

  • The highest correlation I’ve found between retirees who have a smooth transition vs. those who struggle is the amount of time they’ve spent preparing (both financially and non-financially) before retirement.  

  • The key to avoiding Phase II is to pursue your curiosity, which we’ll discuss shortly.

Phase III: Trial & Error

When someone decides they need to do something to change their life and end the struggles of Phase II, they’ve turned the corner and entered Phase III.  As Riley says, “In Phase III we ask ourselves “How can I make my life meaningful again? How can I contribute?”. The answer often is to do things that you love to do and do really well.”

Riley cautions that Phase III will be a period of trial and error, and the retiree should not be disappointed with some inevitable failure.  You should continue to pursue things that interest you.

How to Prepare:

  • “…be thinking ahead of what are some of their strengths, what are some of the things that they love to do and to be considering ways, well before they retire, that they might be able to apply those things when they do retire.

  • And so to be able to have kind of a network that they might have built up or to look at some possibilities in advance, I think is extremely helpful.”

Michael Wei