I term retirement as the state where you are financially free to do anything what you want to do. You don't need to be tied to a job or a business you don't want.
Unless you absolutely love your job, working is like being in a cage in a zoo most of our life, and then retiring is like someone opening the door, and saying go out into the world.
Early retirement is daunting. Freedom is scary. I feel a great deal of uncertainty. It is not like going to entrepreneurship or study because those pursuits offer a determined means to occupy the time. I have no plans and no ambitions. I will have just one primary goal and that is to aim to make each day a happy faced day. I see an example in my cousin who retired early and is living well.
More educated and more highly paid people are less likely to retire despite earlier expectations of doing so. This can be attributed to the addictiveness of money and the system, ego, and an absence of alternatives. One must remind oneself to not be afraid of free time. Time is scarce.
Retirement opens up time. It gives you choices and freedom to do whatever you want whenever you want. This is the luxury you have if you are retired. The most important thing a human being can realise is the (ultimate) trade off of time, where nothing can buy back time. If you enjoy doing something or have something you are passionate about, you can choose to use more of your time in pursuing this when you are retired.
The flip side is that you are spoilt with time and choice. The retired and ultrarich are often unfulfilled and neurotic as they have too much idle time. Retirement presents you with many options and often leads to indecision. Some options you have will improve utility but it is difficult to quantify and choose the option to maximise utility. There may be no right answer, you must act first and reflect later. The biggest mistake people make when trying to change their life trajectory is to delay taking the first step until they have settled on a destination. Just make a decision and evaluate your choices at each step of the journey. When evaluating your decision down the track, if you believe it to be the right one, you can commit to it and work out how to make it happen or change if it is not right for you.
Life doesn’t instantly and spontaneously become amazing when you retire. You make it amazing through your own construction and vision, through your decisions about how to use the additional time available. Without work, you are simply allowed to live much more of your life on your own terms.
The skill you will need the most after retiring is choosing to make yourself happy and a large component of this is living in the moment. Post-retirement, you need to learn how to enjoy each moment as best as you personally can. If you’ve lost that ability somewhere along the way, consider taking a class in meditation or reading books and blogs about mindfulness.
To be healthy, retirement must be physically and mentally active. The best way is if you can do what you are good at by exercising your signature strengths, which makes you happier. This may include working or volunteering if it leads to increased happiness. Retired people who plunged into new activities enjoyed their lives more and were healthier, with those who volunteer to help others reducing their risk of dying prematurely by 60 percent. Similarly, people who belong to a club or social group in retirement significantly reduces the risk of premature death. However, those trying to void-fill were perpetually unsatisfied because their volunteer work could never be as meaningful as the thing that caused the void in the first place.
It is important that we remain physically, mentally and socially active, and not let ourselves lapse into a lack of activity in retirement. Social activities are enjoyable and good for the heart and brain. Happiness shared is happiness multiplied.
For those who regard work as the only purpose in life and have no activities outside work, their identity and usefulness is tied up with work and they may be better off continuing to work. Furthermore, the majority of people are lazy and it is easy to end up watching too much TV or engaging in activities that provide little enjoyment thus not living a fulfilling life. It is easy to be trapped into a daily cycle of nothingness. In the past it can mean an endless cycle of TV and chores. These days, it is an internet black hole of notifications, news and pop up links where people waste away their life without knowing it. In these instances, work can provide structure, routine, engagement and connection with others.
For some who were successful, they may seek their next big win and end up becoming unsure, frustrated and depressed. For these people, they have the opportunity to pursue their interests, meet up with others and give back. Be grateful for the freedom and open up your mind to new possibilities. Living in the moment and enjoying the journey is key. It is important that we don't fall into the trap of comparing ourselves with others based on a 'money as success' mindset..
Almost 50 percent of respondents who feel least rushed and who also feel least excess time report being “very happy”, almost twice as high as the rest of the US public. It is an elite group, making up less than 10 percent of the population. They not only seem happier by ignoring the rat race and subscribing to a philosophy of “don’t hurry, be happy,” but by organizing their lifestyles to minimize spells of boredom and lack of focus as well. Thus, there seems dysfunction in having either too much or too little free time.
Studies show 70 to 85 percent of people are dissatisfied with their job. Around 25 percent of employees worldwide are engaged in their job [
0] [
1] [
2]. This is evident from the labour force participation rate, which drops from 75 percent in the 55-59 age group to 20 percent in the 70-74 age group, with the main reason for people returning to work being financial need (40 percent). Furthermore, happiness is at the lowest between the ages of 25 and 60, largely due to working life, with the lowest point being around age 45 [
3].
Personal well-being is the highest for students and retirees [
4]. Health satisfaction was higher for the older age group, while the incidence of anxiety and depression was lower. Generally a reduction in work related stress is conducive to longer living and studies
[5] show that retirement does not lead to a higher mortality,
Live this life like you don't need a second life.
I only have a finite time. I have to ask myself, what do I want to do with my time. It is important to think about what you will doing with your time after retiring. Make the most of this life, do everything you ever wanted to do as you don't know whether you will get another chance.
If your hobbies are the only thing to pursue, you may not find them as satisfying if there was nothing to balance them out with. However, there are many people who enjoy pursuing their interests and will never get bored of them.
It is worth remembering how important people are in your life. People are the most important thing for older people when they look back on their life.
Your finances
I read this quote and it resonated with me. As somebody who has previously taken entrepreneurial and investment risks, some of which worked out and some of which did not, I would like to offer you this advice: don’t risk killing the golden goose that you have. You’ll need to take risks, to take bets. But don’t bet the farm. Even if it means you have to pass on the dream opportunity. I was “there” 18 months ago, and in my nirvana I took a risk that risked my financial freedom. It didn't work out, and I had to go back to working. Not fun.
I have heard many people who took on too much debt and lost it all. I heard of someone who lost their golf courses, house, Porsche, wife, and fell into depression. I have to always remind myself to protect the downside.
From my past experience, I see that money does not bring me happiness. I think the goal of accumulating more money after US$1 million (in 2000 terms before adjusting for inflation) is ego-driven will not bring you financial happiness. The pursuit of money never ends. For the person who loves money, they can never have enough and are always craving more, leaving perpetuate dissatisfaction.
Money is valuable to you if there is something you want that you need money for. Beyond a relatively low level, the accumulation of material and financial wealth does not add to well-being. It wastes precious time and energy that could be spent on the relationships and simple pleasures proven to make us happy.
Positives
My lifestyle. It is priceless. Having complete control over what you want to do each week, who you want to see, for how long and can go on a holiday anytime you please is what I enjoy most. Starting businesses from scratch gets me excited. I wouldn't have it any other way.
Free time is joy. There are plenty of people wandering around during the day. Many people work from home. A lot of people don't need to work. There is much more to life than work. You discover so many different ways to live. Many folks live with much less. Health increases, stress decreases. In better shape. No longer have to wait for the damn bus. Running errands is easy. Lots of free entertainment. You learn to do things yourself. Better nightlife. Better friendships. Better family relationships. More purpose in life. You can always be busy. No fear of getting fired. Always smiling.
Negatives
Become more impatient with waste. Get lonely sometimes. Easy to get lazy. Less money. Vacations aren't as exciting anymore. Want to feel useful. Want to know what else is there in life. A sabbatical is more fun for two. If boredom and loneliness are the biggest negatives then things really aren't so bad, particularly if you have someone with you.
