How to prioritise your wellbeing when transitioning to retirement

Transitioning to retirement can be an exciting time, but it’s normal to feel anxious or uncertain about the process. Retirement is a big life change. For many Australians, their work is a core tenet of their lifestyle, interests, social circle and routine, and retirement brings a whole new chapter into the mix. Here’s how to prioritise your wellbeing, financial and otherwise, when transitioning to retirement.

Adopt a positive mindset

Retirement can feel overwhelming for some. Adopting a positive mindset from the outset can help you approach the change proactively and use it as an opportunity to design an exciting new stage of life. Talk about retirement with people in your life and consider reaching out to friends or family members who have begun the transition. If necessary, you might want to discuss your emotions around retirement with a mental health professional.

Consider your retirement finance options

In Australia, retirement tends to be funded by a combination of:

• Superannuation
• Government support
• Part time work
• Personal savings

It’s important to consider how you plan to fund your retirement, and whether you’re in the financial position required for the retirement lifestyle you want. Check in with your superannuation as early as possible and speak to your fund or a financial advisor about aligning your super to your retirement goals.

• Check what government support you may be eligible for, and forecast how this may affect your financial position in retirement.
• Consider whether you would like to continue working, either at your current job or a different one. This can help with cashflow during retirement, as well as the lifestyle and routine transition. Having a bit of income from retirement work may help your super go further.
• Speak to a professional about the best way to begin accessing your superannuation, as there are different options for different circumstances.
• Consider whether you’re keeping personal savings in the right account structure for your circumstances. If you have savings you don’t plan to use for 1-5 years, a term deposit could provide you the consistency and security you need to maximise your money without the risk.
• If you own your home, your home loan or equity might factor into your retirement plans too. Downsizing or refinancing to free up equity or reduce living costs could provide more peace of mind in retirement.

Maintain a routine

Many retirees say routine is crucial in adjusting to the lifestyle shift. Consider the types of things you value about your working life, for example:

• having somewhere to be each day,
• social interactions and community,
• purpose and feeling challenged.

Then, find ways to build these into your retirement routine. Things like volunteering, social clubs and hobbies can enhance your wellbeing in new ways.

Set a retirement cashflow plan

Adjusting to retirement may mean adjusting to a change in income. It pays to plan ahead and set a cashflow plan for your new financial position so you’re not caught out by higher expenditure than you can afford. The Bendigo Bank Online Budget Planner can help you set up a budget to suit your new retirement lifestyle.

Many find it beneficial to organise their money into multiple accounts or ‘buckets’. This allows you to ear mark cash for different expense categories like bills, travel or emergencies. The Bendigo Bank Easy Retirement Account allows you to have multiple accounts to manage your cashflow. For short term savings or building up emergency reserves, the high interest Bendigo Bank Reward Saver allows you to earn a bonus variable interest rate when you meet eligibility criteria. Alternatively, the Bendigo Bank EasySaver offers a savings environment with fewer requirements.

Taking a proactive approach to your retirement transition helps you set a foundation for wellbeing in every sense. Remember to reach out to a qualified financial advisor for advice tailored to your financial circumstances.