How to navigate the different phases of retirement

“Often people wait to form a plan, which for some could work out well, while for others could leave them floundering. Retirement disrupts a sense of identity, status, meaning and focus and can also affect relationship dynamics or illuminate relationship issues,” she says.

“Starting to speak about it can be a good way to get your head around it, as the various conversations and reactions you get will prepare you for what you need to be thinking about. Seeking professional support to explore any sticking points could also be invaluable.”

Market researchers have defined five distinct stages of retirement that can help people negotiate their emotions and expectations around this life stage.

Phase 1: Imagination (6–15 years before retirement)

Whether you’re in your early 40s or about to turn 60, people in the pre-retirement phase start to face the fact that retirement is no longer far off in the distant future, but something more imminent. This is the phase where people begin to imagine what life might look like when they’re no longer working.

Jeff, 46, is a financial planner from Wagga Wagga. He and his wife Pip took two long road trips together when they first met, and both loved it. “My plan is to join the grey nomads at some stage and travel around parts of Australia I’ve not seen before,” says Jeff. “I dream about us buying a tiny house on wheels and having a real adventure.”

“Most people have an initial retirement plan that resembles an extended holiday, a long-awaited trip, or a busy round of socialising,” says Shaw. “Then life settles in and the open time can feel delightful for some and quite confronting for others.”

Phase 2: Anticipation (up to 5 years before retirement)

Just before retiring, people begin to feel a growing excitement and relief that the daily demands of their working life are coming to a close.

“There are a lot of stereotypes about retirement that are related to, ‘it’s going to be great!’ or the more negative association of getting older and this being a ‘time to rest’. Both can be very challenging. It may also be a time of worry and regret if the desired retirement is not affordable and life becomes more limited,” says Shaw.

Gillian, 58, has been drawing on a transition-to-retirement pension for the past three years after cutting back her hours at a hairdressing salon in Sydney’s inner west.

“COVID-19 lockdowns have been really difficult for us,” she says. “We opened up in October but with limits on how many clients we can have in the shop at one time, we are still struggling to get back to where we were.”

Phase 3: Liberation (retirement day and the year after)

Also called the honeymoon phase, this is when the demands and responsibilities of work are finally over. Most of us have plans in place and feel excited about the windfall of time and freedom that’s ahead of us.

“Retiring gave me two gifts,” says Cecelia, 65, who retired from teaching six years ago. “It gave me time and resources. I always wanted to teach yoga but between working and raising children, I just never got around to it. When I retired, I had the money and time to do my yoga training.” Cecelia now has her own practice in Canberra running daily classes and workshops.

“Some who have already defined hobbies, friends and interests will have a stronger sense of life ahead,” says Shaw. “Others who have had little life outside of work may wait for inspiration to see what appeals. If they are reliant on others being available, this could be disappointing.”

“It can take a while to find one’s feet and establish a routine. Usually having some shape to the week can provide some anchor points around which other things can be built,” she says.

Phase 4: Reorientation (2–15 years after retirement)

This phase is about moving closer towards a more balanced lifestyle with a new set of diverse interests, relationships and routines – a time to reinvent and redefine yourself.

“This is a stage when trying new things is valued, even expected, and can therefore be quite liberating,” says Shaw. “Being open to ideas and suggestions is worthwhile in case new discoveries can be made.”

Trish, 68, has discovered the benefits of volunteering. “I retired in 2019 and my husband Graham is now semi-retired,” says Trish. “I volunteer two days a week at a refugee centre. It feels good to be making a difference in the lives of people who have had to go through hardship and trauma.”

Phase 5: Reorientation (16+ years after retirement)

It’s in this final phase that retirees are no longer thinking about retiring and planning for their retirement – they’re getting on with living it! They’re reflecting on past success and failures and bringing a lifetime of knowledge into their future.

This is when most retirees feel generally content, hopeful and accepting of being retired. Comforting routines are set in place, goals become more realistic and happiness increases.

“One thing I like about being retired is that when my phone rings, it’s someone I actually want to talk to,” says Phil, 69, who was a television producer until he retired eight years ago and moved to the NSW South Coast. “I walk or swim every morning and I’m involved in quite a few community projects. I feel I’m still evolving as a person and enjoying life,” he says.

Shaw points out that it’s completely normal to go up and down in your feelings about retirement, depending on what is happening. “The pace of life is very different and takes a bit to get used to,” she says.

“The biggest challenge will be grappling with your new identity and self-concept, as you encounter your own and others’ reactions to a life stage that still gets caught in ageing bias. Seizing charge of the narrative about you and giving your story shape and substance will be an ongoing work as the years pass.”