What can I expect to change?

1. How you get paid
 

Most working Australians earn income from a job in the form of a wage or salary.¹ But once you retire from the workforce, you will need to rely on other sources of income. Australia’s retirement income system is based on three pillars – super, the government Age Pension and private savings. Many retirees rely on a combination of all three.

Understanding how to access each of these income sources, and how they work together, can help you get a clearer picture of where your money will come from during retirement.

The amount of money coming in may also change considerably from what you’re used to. Preparing a retirement budget can help you get a realistic view of your likely expenses.
 

2. How your days are structured
 

One thing retirement can provide is time; time to do whatever you want. But it often lacks structure. While you’re working, your days are mapped out to a degree – with start and finish times, meetings, appointments, and meal or rest breaks.

Routines have been shown to support mental health,² and the loss of work-related routines can be stressful, particularly in the early stages of retirement. Adding some structure to your days may help you feel more in control of your time.

3. How you meet and mix with other people
 

Work often provides a built-in social network of colleagues and co-workers, and leaving the workforce can reduce your day-to-day contact with others. Significant life changes, such as retirement, come with an increased risk of social isolation and loneliness.³

Strong social connections are an important part of staying mentally and emotionally healthy, so your retirement lifestyle planning should include opportunities to connect and nurture relationships with family, friends, and the wider community.

4. What gets you up in the morning

Finding purpose in life often comes from pursuing something meaningful; for many, that’s their work.⁴ McKinsey research, conducted during the COVID-19 pandemic, shows people with a strong sense of purpose tend to be more resilient and exhibit better recovery from stressful events. During times of great change, individual purpose can be a guidepost that helps you navigate uncertainty and manage stress.⁵ So take a moment to reflect on what truly motivates you and gets you up in the morning.

5. Changes throughout retirement
 

Retirement is not a one-off event but a new beginning. And it can last a long time – an average of 20 years or more according to the latest statistics⁶ and you can expect things to change over those years. For one, you’re going to get older and planning well in advance can significantly reduce the emotional and financial stress of ageing care needs.

As a Mercer Super member, you have access to ageing care support and advice for yourself or a loved one at no additional cost through Care & Living with Mercer.^{^}

A good retirement plan should consider more than just how much money you need. Anticipating and planning for the emotional aspects of retirement can help you avoid pitfalls like loneliness and boredom that sometimes set in after the initial excitement wears off.