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The ‘vacation’ phase

When you retire, you suddenly have no routine — and plenty of time on your hands. You now have the freedom to do whatever you want, whether that means playing golf every day or traveling in Europe. This is what Dr. Moynes dubs the “vacation” phase.

But it can be tempting during this phase to make large purchases that you might regret later, such as expensive cars, boats or luxury trips. You don’t want to end up funding this phase of retirement by taking your Social Security benefits earlier than you need to, or by making large withdrawals from your retirement accounts.

Since your retirement could last 35 years or more, consider making a retirement budget, which takes into account how much to withdraw from which accounts at which time. A financial planner could prove invaluable in helping you enjoy your new freedom and still stay on track financially.

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The ‘feeling lost’ phase

In time, many people become bored with the first phase of retirement and move on to a second phase, which Dr. Moyes refers to as “feeling lost.” During this phase, you start to feel the loss of routine, relationships, identity, purpose and power that you had in your working life.

This can be a difficult time, and it may coincide with the three D’s of retirement: decline, depression and divorce. In this phase, according to Dr. Moyes, we start to experience mental and physical decline, have a 40% chance of experiencing clinical depression and might even get a divorce.

At the same time, you might have to manage rising expenses for medical care or navigate the financial fallout from divorce. On the other hand, you might be spending less on travel and other extravagances, and you’re likely receiving Social Security benefits, since there’s no advantage to delaying them beyond age 70.

The ‘trial and error’ phase

The ‘“trial and error” phase is about rehabilitation, according to Dr. Moynes, when you seek out new meaning and purpose in your life. It’s a time of trial and error, where you’ll try new things — and fail at many of them. Some people never move beyond this phase, or even revert back to previous phases, but by sticking it out, they can make it to phase four: the sweet spot.

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The ‘reinvent and rewire’ phase

Only 60% to 65% of retirees ever reach the final “reinvent and rewire” phase, according to Dr. Moynes. But those who do find it to be the most meaningful phase of their lives: They’re busy, they’re connected to other people, and they’re making important contributions to society. In other words, they’re enjoying life to the fullest.

From a financial perspective, you’ll want to review your estate plan during this phase to ensure you’re leaving behind the legacy you want. For example, there may be new causes or charities you want to support. And if your newfound purpose comes from part-time employment, you may have some additional income, which means you’ll need to update your retirement budget.

For most people, retirement is not an “everlasting vacation,” Dr. Moynes says. Rather, you need to work — just not in a job — to be good at being retired. That requires introspection, and asking yourself some tough questions to find fulfillment.

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Vawn Himmelsbach Freelance Contributor

Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.

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