Preparing for retirement: Mental challenge

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 master the mental challenges of retirement and make your retirement time active and fulfilling.

How can you best secure your financial future in retirement?

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.

Checklist for preparing financially for retirement

1. Get an overview at an early stage: Start actively planning for retirement before you turn 50 – take advantage of your long investment horizon and pay consistently into all three pillars. From the age of 50, you get a concrete overview of your assets, debts, and expected benefits from all three pillars – leaving you enough time to act.
2. Identify and close pension gaps: Check whether your pension benefits cover your needs and close any gaps in a tax-efficient way, for example via Pillar 3a or a pension fund purchase.
3. Update your investment strategy: As you approach retirement, gradually switch from accumulating assets to preserving them – in other words, from riskier investments to more secure ones.
4. Plan withdrawal and meet deadlines: Register your OASI (Pillar 1) with the relevant compensation office early – ideally three to six months before you retire. Decide in good time whether you want to draw your Pillar 2 occupational benefits as a pension, a lump sum, or a combination of both. You can also use the time remaining until retirement to make a final payment into Pillar 3a and secure tax advantages.
5. All-round protection: Clarify the affordability of residential property in good time before you retire as well as legal provision documents (advance care directive, living will, marriage/inheritance contract) and include accident coverage in your health insurance after you retire.

More information and the detailed checklist: Planning your retirement

How do you stay healthy and well insured 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.

How can I prepare mentally 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.