The Retirement Newsletter: What is it like to be newly retired?
Issue Number: -118 — a brief chat with some newly minted retirees
Welcome
Welcome to issue -118.
Over the last couple of weeks, I've been chatting with three of my friends who have recently retired, and I have asked them how's it going.
And so, this week, I will take a look at their responses to questions about health, money, and life, as a freshly minted retiree.
The Retiree newbies
All three of my friends retired early, that is, 5 - 10 years before the accepted UK retirement age of 67. All three planned how to get to their retirement dates.
Retiree 1
Retiree 1 retired from a senior position in a large company. They had been planning their retirement for several years and decided that it was financially time to retire. They retired about six months ago.
Health
Health was an interesting conversation. It appears that once they retired, they started to notice a lot of little "niggles". Things that they would not have noticed when they were still working. Also, they said that they seem to be more prone to infections, for example, colds.
Money
Sorting out money has been an issue for them. The situation has not been helped by working for several companies and having many pension pots. Six months post-retirement, they were still having some problems gaining access to some pensions.
Life
Life is good.
They said they had found time to relax, go on holiday, and not worry about what was waiting for them back at work. They had also found time to take up hobbies and interests that they had neglected over the years.
Going to the gym during the day when it is quiet was great. But, now that we are heading into winter, they said they have decided to look for a part-time job. I pushed them on this point; why were they looking for a part-time job? Money? Boredom? Well, it turned out to be a combination of the two. With the winter months looming, they wanted something to do, to keep their mind active and keep them engaged. Plus, a little extra cash would not hurt.
It was interesting that they had developed a pretty rigid routine. "On Monday I do this, Tuesday it is that… etc." — an interesting approach.
Summary for retiree 1
Retiree 1 is loving retirement. They say it is the best decision they have ever made.
Retiree 2
Retiree 2 retired about two months ago from a job in the public sector.
Health
Like retiree 1, they said they had noticed some health "niggles”, such as pains in the knees and ankles. They also commented that they seem to be a "virus magnet" in that if any bugs are doing the rounds, they will catch them.
So far, they've had the world's worst cold that has lasted a month or more, plus several other infections. They commented that they feel that some of this was not helped by having COVID-19 last year.
Money
On money, they commented that they were still adjusting to the "new normal" of having a pension instead of a "wage packet". They felt they were being cautious with their spending and had resisted (so far) the urge to buy any big-ticket items. But, come next spring, that may change.
They had met with several financial advisors, and they commented that it took them some time to find one they felt comfortable with. That is, to find someone who held similar values and understood their needs and wants.
Life
Life was an interesting conversation.
They said they were enjoying their retirement and their newfound freedom. They felt they were busier than ever, busy with socialising and catching up with friends. They had the time to take weekends away and meet with friends they had not seen for some time. But, after two months of being retired, they would go back to work — this was always planned — to provide six months cover for someone on extended leave.
Summary for retiree 2
Retirement is great. They enjoy not being tied to the 9-to-5 every day. Plus, going back to work with fewer responsibilities and less time spent "on the job" made work fun again.
Retiree 3
Retiree 3 has been retired for about three months. They had worked for a large multinational company in which they were involved in sales.
Health
They reported no issues with health. No increased levels of infections or noticeable niggles.
Money
They were a little reluctant to talk about money, other than to say it was "fine" and "there were no issues". They commented that the best money decision so far was to meet with a financial advisor. The advisor had helped them merge their pension pots and had helped them identify the best ways to secure a financially comfortable retirement.
Life
The life conversation was odd, and due to some family and personal issues, they still didn't feel retired.
They did say that they had no plans to go back to work or look for a part-time job, and they still had not decided what they were going to do with their time. They thought that this was primarily due to not feeling retired.
They did comment that not being tied to a 9 to 5 job meant they had more time to spend with their family and that they were enjoying getting back some control over their day-to-day life.
Finally, I asked them what it was like not to be stressing about meeting their targets at the end of the quarter. They commented that they had not even realised it was the end of the quarter! I guess they have settled into retirement?
Summary for retiree 3
I got the impression that they did not feel, or had not accepted, they had retired.
Summary
It was interesting catching up with my friends and discussing their retirements. All three were enjoying retirement, and apart from some health niggles, and infections, it was going well.
Each one seemed to be experience retirement in a different way and getting from it what they wanted.
Health
Last week (Issue Number: -119 — How much do you need to retire? The maths!) I 'nagged' you about getting the COVID-19 and flu jabs.
Have you? It's important — and I may say more about why it's important a future newsletter.
Useful links
UK Government Website:
Next week
Next week, it looks like I will be returning to 'tax calculations' (last visited in Issue -119 — How much do you need to retire? The maths!) as I have received a question on National Insurance and the impact of reaching national retirement age in the UK on your pension. Next week, I will also look at the effects of the recent changes in the National Insurance rate on our pension incomes.
Thanks
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Until next time,
Nick
PS, If you have something you would like to contribute to the newsletter — a story, advice, anything — please get in touch.