Managing Financial Stress in Retirement

ByWaypoint

Many look forward to their retirement years, perceived as a relaxing and carefree period after decades of hard work. Nonetheless, for many, this time may also be a period of financial anxiety and stress. Matters such as unexpected medical expenses, the increasing cost of living and inflationary pressures can conspire and create challenging emotional headwinds. While these financial pressures are real, there are ways to manage the stress and protect your mental well-being.

The Emotional Impact of Financial Stress

Financial stress when retired can include numerous emotional experiences, such as;

Fear of the Future:  Worrying about future expenses, such as healthcare, may result in feeling hopeless and fearful, thus not enjoying retirement.

  • Anxiety and Worry:  Fears of not having enough saved to sustain a one’s lifestyle, outliving one’s savings or not being unable to afford rising costs can result in anxiety, poor sleep and appetite and general health.
  • Loss of Identity and Purpose: The transition to a fixed income may feel like losing control, particularly if this transition necessitates a marked lifestyle shift.
  • Guilt and Frustration:  If retirement is less comfortable than anticipated, feelings of guilt and frustration may occur, especially if downsizing or pulling back on fun leisure activities in required.
  • Fear of the Future:  Worrying about future expenses, such as healthcare, may result in feeling hopeless and fearful, thus not enjoying retirement.

Managing Financial Stress

Here are 5 practical steps to counteract the impact of stress;

  1. Plan a Budget:  Start by assessing your current financial situation. Develop a budget that covers your essential expenses, such as housing, food, and healthcare. Understanding where your money is going can help you regain a sense of control.
  2. Consider Alternative Income Sources:  Consider part-time or freelance work if your savings are insufficient. This can also provide some structured activity in retirement.  This relieves some financial stress while also offering a sense of purpose and structure.
  3. Get a Financial Advisor:  Financial professionals will assist in long-term planning and informed decision-making, accounting for lifestyle, inflation and other risks.  Working with a professional advisor may also offer peace of mind.
  4. Simplify:  Take a look at your lifestyle.  You may need to consider reducing discretionary spending, downsizing and simplifying your lifestyle to free up money for other, more important priorities.
  5. Use Benefits and Assistance Programs:  Become aware of all benefits available to you and your family.

Coping with the Emotional Impact

Managing the emotional impact of financial stress is as important as addressing the financial realities.

Here are 5 ways to do this.

  1. Mindfulness and Relaxation:   Very simple methods such as deep-breathing, yoga and simple meditation can greatly lower anxiety and stress while also building feelings of peace and calm. 
  2. Stay Connected:   Connecting with friends and family is critical to maintain social relationships and providing emotional support.  This also reduces isolation and can prevent feeling depressed.
  3. Talk to a Counsellor:   Consider talking to a mental-health professional if stress and anxiety persist, or if depression becomes problematic.  Counselling will provide a way to further explore coping mechanisms and emotional support in challenging times. 
  4. Focus on Things You can Control: There are many things outside or our control, but you can control how you respond to those events.  It is simpler to say than do, try to ‘let go’ of those things that are beyond your influence.
  5. Engage in Positive Activities:  Have fun, spend time on joyful activities.  Positive activities improve mood and offer a sense of fulfillment.

Going Forward

Enjoying your retirement can be challenging when facing financial stress.  Actively planning and managing finances and prioritizing your mental health in practical ways will help you manage any challenges, while promoting peace of mind.

At Waypoint Counselling Network, we offer a free matching service to be connected to the counsellor that best suits your needs and personal style.  We also offer a regular newsletter that provides simple approaches to improve your outlook and reduce anxiety and stress.  Check us out. 

At Waypoint Counselling Network, we know finding the right therapist is the most important step in seeking help. Reach out to learn more.

This article was published in the recent online edition of GRAND magazine.