For most of our working lives, the word retirement sits quietly on the horizon, a distant goal tied to spreadsheets, pension funds, and savings plans. We’re told to prepare financially; to invest wisely, to calculate what we’ll need, and to make sure our future selves will be secure. Yet, when the time finally comes, many discover that the hardest part of retirement has little to do with money at all.

It’s the psychological shift that catches us off guard.

Imagine waking up one morning without the familiar rhythm of work; no deadlines, no meetings, no daily purpose already mapped out. For some, that sounds like freedom; for others, it feels like stepping into unknown territory.

The phrase, “I’m not ready yet,” often echoes not from an empty wallet but from an unsettled mind. Beneath it lies a mix of emotions, anxiety about losing identity, fear of becoming irrelevant, and even a quiet excitement about rediscovering what life could look like beyond career titles. Retirement is one of life’s most significant transitions, right up there with starting a career or raising a family.

Planning for it involves more than balancing numbers; it means preparing the mind and heart for change. Imagine stepping into retirement feeling confident, energized, and excited about the days ahead. According to Wang, M., Henkens, K., & van Solinge, H. (2018) in their book, Adjustment to retirement: Effects of resource change on physical and psychological wellbeing, preparing for this transition holistically, it's not just about the finances, but also their social connections and emotional wellbeing, that tend to help us navigate retirement more smoothly and find it more fulfilling.

Longitudinal studies indicate that planning across multiple areas, including nurturing relationships, preparing emotionally for the change, and ensuring financial readiness, helps retirees maintain a sense of identity, purpose, and daily structure, which in turn supports both mental and physical wellbeing1, for example, international studies show that retirees who actively fulfil their retirement plans experience higher levels of social engagement, self-esteem, and positive mental health2, while South African research highlights that financial literacy, proactive planning behaviors, and a long-term future outlook significantly influence people’s confidence and sense of preparedness for retirement¹². In the end, retirement isn’t just about what you’ve saved.

It’s about what you’ve built within yourself to carry you into this next chapter, with confidence, meaning, and a sense of purpose that extends far beyond the pay slip. So how do we prepare our minds for retirement with the same care and attention we give to our finances?

Let’s look a little closer at what truly drives those feelings:

1. Loss of identity and the disruption of routine

Work is far more than a paycheck; it’s the framework that shapes who we are. So, when retirement arrives, it can feel a bit like stepping into the unknown, where the familiar question of “Who am I now?” suddenly echoes louder than expected. The loss of the worker role can quietly unsettle one’s sense of purpose, sometimes even dampening overall life satisfaction. Yet, those who carry pieces of that identity forward, through hobbies, volunteering, or other meaningful pursuits, often find the transition gentler. These continued roles not only preserve a sense of purpose but are also closely tied to better mental health and lower rates of depression. On the other hand, when retirement comes abruptly or is shadowed by financial strain or poor health, the road ahead can feel far more difficult to navigate.

Here are some options to consider while preparing:

Retirement isn’t just a change in routine; it’s a shift in identity, purpose, and daily structure. Understanding a few psychological insights can make the transition smoother.

• Role theory reminds us that leaving a central work role can be stressful, but purpose can be preserved through role replacement. This might mean mentoring, part-time work, or pursuing hobbies that align with your values. For example, a retired teacher might continue shaping young minds by tutoring online or mentoring students, keeping a sense of identity and competence alive.
• Continuity theory shows that maintaining familiar lifestyles, activities, and relationships supports wellbeing. Gradual transitions, phased retirement plans, or planned routines, like daily walks, exercise, or social meetups, help retain the rhythm of life, reducing the shock of sudden change. If morning coffees with friends or evening walks are part of your life, continue these activities to support mental and physical health.
• Activity theory emphasizes that staying socially, mentally, and physically engaged enhances satisfaction and health. Joining clubs, learning new skills, or taking up physical activities like gardening or walking groups keeps both the mind and body active.
• Socioemotional selective theory shows that as time feels more precious, we naturally focus on emotionally meaningful experiences. Retirement satisfaction grows when we prioritise quality relationships and joyful activities while letting go of draining obligations. Instead of trying to do it all, focus on the people and hobbies that truly enrich your life.

By blending these approaches, replacing roles, maintaining continuity, staying active, and prioritising meaningful connections, retirement can become a time of purpose and emotional fulfillment.

2. Fear of financial insecurity

Even with a healthy nest egg, the thought of living off savings instead of earning a steady paycheck can feel unsettling. Even with savings, retirees can experience fear of market volatility, inflation, and whether their money will last, especially when they are no longer earning a steady salary. Many of those starting the journey, worry about “spending down” what they’ve worked so hard to build, and this anxiety can sometimes overshadow the excitement of retirement.

How to ease the worry:

• Plan with purpose: Collaborate with a financial planner to create realistic spending plans that match your lifestyle and goals.
• Transition gradually: Consider phased retirement or part-time work to maintain income while adjusting to life beyond full-time work.
• Build predictability: A well-structured investment strategy can provide steady, sustainable income, allowing you to enjoy retirement without constant financial stress.

Pairing financial preparation with lifestyle planning, maintaining meaningful roles, routines, and activities, can reduce anxiety and help you embrace retirement as a time of both security and fulfilment.

3. Shifts in social connection and loneliness

Colleagues often become part of our social fabric. When we retire, that daily contact naturally fades, and loneliness can quietly creep in. Building and maintaining social circles, whether through community involvement, volunteering, or hobbies, becomes an essential part of emotional health.

How to manage changes in social connections and prevent loneliness:

• Recognise the shift early: Understand that daily interactions with colleagues will naturally reduce is the first step. Anticipating this change allows you to actively plan new ways to stay connected, rather than being caught off guard.
• Maintain existing relationships: Stay in touch with coworkers, friends, and professional networks. Regular coffee chats, lunches, or even virtual calls can help preserve the social ties that matter most.
• Expand your social circle: Retirement opens opportunities to meet new people. Consider joining clubs, interest groups, or volunteering initiatives that align with your passions. Shared interests make it easier to form meaningful connections.
• Invest in community engagement: Being part of a community, whether it’s your neighbourhood, a faith group, or a hobby-based group, provides regular social contact and a sense of belonging. It also gives a structure to your week, helping to replace the rhythm that having a job once provided.
• Pursue shared activities: Engage in classes, workshops, or group activities. Learning alongside others not only stimulates the mind but also fosters friendship and shared purpose.
• Seek emotional support if needed: Even with proactive steps, some may still experience loneliness or anxiety. Speaking to a professional, joining support groups, or connecting with peers in similar life stages can provide guidance and reassurance.
• Balance solitude and connection: It’s natural to enjoy alone time, but prolonged isolation can deepen loneliness. Striking a balance between personal reflection and social interaction helps maintain psychological wellbeing.

Loneliness in retirement isn’t inevitable. By intentionally cultivating relationships, engaging in meaningful activities, and seeking support when needed, retirees can transform potential social gaps into opportunities for connection, growth, and fulfillment.

4. The “

Those mixed feelings that rise as retirement draws near aren’t random. They’re driven by powerful psychological shifts that touch identity, purpose, and belonging. For decades, work has shaped how we see ourselves; it’s where we’ve felt useful, competent, and connected. So, when that chapter starts to close, it’s natural to feel uncertain. The excitement of freedom can easily intertwine with the anxiety of “What now?” Understanding why these emotions surface is the first step to preparing mentally. Retirement isn’t an ending; it’s a redefinition of who you are, how you spend your time, and what gives your days meaning. And just like financial planning, this emotional preparation requires reflection, intention, and willingness to invest, not just in rands and cents, but in wellbeing and purpose.

How to plan purposefully for life beyond a career:

• Reflect on your values and passions: Take time before retirement to explore what truly matters to you outside of work. What activities, causes, or hobbies make you feel alive and fulfilled? Journaling, vision boards, or conversations with loved ones can help clarify what you want your days to look like.
• Experiment in advance: Consider easing into retirement by testing out new routines or part-time projects. Do volunteer work or dedicate time to hobbies while still employed. This experimentation reduces the shock of sudden unstructured time and helps identify meaningful pursuits.
• Set goals beyond finances: Just as you might set targets for savings, create goals such as learning a new skill, joining a club, or committing to regular physical activity. Goals provide structure, direction, and a sense of accomplishment.
• Redefine purpose: Work often provides identity and a sense of contribution. Retirement is an opportunity to shift purpose into new domains: family, community, creative endeavors, mentoring, or advocacy. Recognise that your value isn’t tied to a job; it’s tied to the impact you continue to make.
• Build flexibility and curiosity into your plans: Not every retirement path is linear. Interests and priorities may evolve. Embrace being curiosity, adapt and be open to new experiences..
• Consider psychological support: Life transitions can stir anxiety, self-doubt, or even grief. Talking to a professional or joining a peer support group can help process emotions, set realistic expectations, and build resilience for the next chapter.

The “what now?” dilemma isn’t a problem to solve; it’s an opportunity to consciously design a life that aligns with who you are now, not just who you were in your career. Preparation, reflection, and exploration turn uncertainty into a canvas for meaningful and fulfilling days ahead.

5. Managing uncertainty and change

Retirement is one of life’s biggest transitions, and it’s perfectly normal to feel excited one day and anxious the next. After all, even positive change brings stress. What matters most is preparing not just financially, but psychologically: take time to reflect, have open conversations with those that matter or even consider counselling. At 10X Investments, we understand that retirement planning goes far beyond numbers. We’re here to help you :

• Clarify your financial path – know exactly how much you’ll need and the steps to get there.
• Explore flexible options - consider phased retirement or downsizing to ease both financial and emotional pressures.
• Create a comprehensive plan - giving you confidence and peace of mind, so when retirement arrives, you’re ready - not just financially, but mentally and emotionally as well.

When we understand these drivers, we can begin to approach retirement with more awareness and gentleness, not just at the end of a career, but at the start of a new, self-defined chapter.

References

1. Mulaudzi, M. C. (2019). Perceptions of retirement adequacy: Evidence from South Africa. University of Pretoria.
2. Yeung, D. Y., & Zhou, X. (2023). How older adults fulfil their retirement plans relates to positive mental health: A path model analysis of social activity and self-esteem. Current Psychology.