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Overcoming the Top Four Causes of Anxiety in Retirement

May 6, 2025
The Parady Blog
Home | Overcoming the Top Four Causes of Anxiety in Retirement

Not many people, if any, include “learn how to reduce stress” on their pre-retirement checklist. And why would they? Retirement is a season of life in which your worries melt away, you golf or travel to your heart’s content, and you can bask in the payoff of all those working years. So what’s there to stress about?

Unfortunately, retirement can bring up complicated emotions for many people, especially once the newness has worn off. Studies show that an estimated 28% of adults experience depression and anxiety in retirement. Instead of leaving your retirement satisfaction at odds of three to one, here are the four most common sources of stress in retirement, and what you can do to beat the odds.

1. Having to Retire Sooner Than You Planned

In an ideal world, you’ll hit your target retirement age and start your golden years with a nest egg that matches your income needs. But, life doesn’t always go according to plan. If you experience a layoff, illness, or disability, you may find yourself leaving the workforce sooner than planned. 

Understandably, this can cause significant stress! Not only are you dealing with the emotions of unexpected change, and potentially a medical condition, you suddenly have significantly reduced earning potential and a longer-than-planned retirement. You may have to adjust your budget, reduce your standard of living, or downsize to ensure you don’t run out of retirement savings.

The Solution: Build a Buffer Into Your Savings

One of our favorite ways to help clients counter the “what ifs” of retirement income is through Modern Life Insurance™. These products have come a long way in recent years and now offer flexibility in terms of tax-free income during your lifetime. Let’s say you purchase a whole life policy and add a Long Term Care Rider. If you need additional cash flow in retirement, you can access the cash value of your policy to supplement your income (keep in mind that any sum you don’t repay will be subtracted from the death benefit). If you are facing unexpected medical expenses, you can use the policy for your long-term care needs and preserve the rest of your retirement savings for other expenses. If you don’t end up needing the policy after all, you can leave it as a tax-free death benefit to your loved ones. You can even structure your policy with the option to get a full return of your premium. With just this one solution, you can establish a financial buffer, maintain flexibility, and get peace of mind!

2. Facing a Lack of Routine

Having nowhere to be and nothing to do is exhilarating at first, but the excitement of a wide-open schedule can quickly burn off. Work is how many of us find a sense of purpose, and losing that routine may lead to feeling adrift and unsatisfied. 

The Solution: Create a Purposeful Retirement Plan

Successful retirement planning isn’t just a numbers game. We need to ask ourselves what we’re saving up for instead of just saving. Think about what you want your life to look like in retirement, and get specific. What kind of hobbies or activities do you want to spend your time on? Consider the time and cost investment required for each so you can plan and save accordingly. If you want to spend time with the grandkids once or twice a week, do you live close enough to facilitate that goal? Are there classes you’re interested in taking? Having a detailed vision for your retirement years can help you establish routines while ensuring your financial plan can support your lifestyle goals.

3. Lacking Community

Once you’re retired, not only will you no longer go into the office, but you won’t see the people you’ve worked alongside for so long, at least not as often. In some cases, this may be an exciting thought! However, losing these workplace interactions can leave a significant hole in your social and emotional tank. Finding ways to cultivate meaningful relationships post-retirement is crucial to increasing retirement satisfaction.

The Solution: Find Like-Minded People

The shared environment and experiences of the workplace facilitate connections, so finding other similar environments can help you get a jump on boosting your social circle. Consider volunteering, coaching (business or sports!), consulting, or even trying out a part-time job in a field you’ve always been curious about. You’ll find people with similar skills, interests, or goals to connect with. As an added bonus, you may even be able to supplement your retirement income if needed.

4. Worrying About Running Out Of Money

Many retirees share a surprising problem: they have plenty of money, but they’re afraid to use it. It makes sense when you think about it. We spend our entire working lives conditioned to save, save, save, so when it comes time to actually use those savings, especially when we don’t have an easy way to replenish them, we get caught up in fear. Hoarding your retirement savings is no way to enjoy your post-working years, and you could waste the best years of your life on worry instead of making memories and living to the fullest.

The Solution: Focus on Retirement Income, Not Just Retirement Assets

One of the reasons why we love annuities is because they generate monthly retirement income that you don’t have to think about, just like a paycheck. While assets can be sold, this can trigger a scarcity mindset: your brain views it as losing money when you’re really just spending it on the thing you saved it for, to begin with! Incorporating Modern Annuities™ into your retirement plan is a handy way to get around this fear-based distortion of reality, freeing you up to enjoy your retirement (you can read more about it here).

Your Retirement, Your Way

The bad news is that simply leaving the workforce doesn’t de-stress your life. The good news is that there are many things you can do right now to invest in your retirement satisfaction, and we’re here to help. There’s no reason why your retirement shouldn’t be everything you’ve dreamed of. At Parady Financial Group, we help you anticipate the curveballs so you can get where you want to go and enjoy it to the fullest once you get there. Ready to take the next step toward unstressing your retirement? Start your journey.

Overcoming the Top Four Causes of Anxiety in Retirement