It is a prospect some people relish, being able to retire from the workforce and have as much time as they want to do what they want, when they want. But is retirement the nirvana it seems?
The idea of retirement can conjure up intoxicating images of overseas adventures and endless time to do whatever you want.
And author and retired psychologist Michael Longhurst says that can be the pleasant reality for retirees -- for the first 12 months or so.
But he says some retirees find it difficult when the retirement honeymoon ends.
"During that phase, it is just like a long holiday, and you can play all the golf you like, and that's probably going to be enough. But there comes a time when, whilst it's still great to have your recreational activities like fishing, golf, whatever it happens to be, you need to have something a little bit more meaningful. Otherwise, you feel, well, you know, 'I'm living this sort of idle life. It doesn't have much meaning.' And it's at that time that people either start querying what they're doing with their life or they do something about it."
Michael Longhurst is the author of Enjoying Retirement: An Australian Handbook of Ideas, Strategies and Resources.
He says most people approaching retirement have not prepared for its psychological impact.
He says the focus of such people tends to be solely on their finances.
The Federal Government's Financial System Inquiry led to the government agreeing to support the development of more efficient retirement-income products.
A finance professor at the University of Sydney Business School, Susan Thorp, says they have been labelled Comprehensive Income Products for Retirement.
She says one goal the government has is to help retirees try to ensure they do not run out of money in their twilight years.
She says one option they could consider is a life annuity.
Professor Thorp says it works like a life-insurance policy but in reverse.
"So, with a life-insurance policy, we pay regular premiums, and, if we pass away, our beneficiaries receive a lump sum, or at least they should. With a life annuity, you basically reverse that process. So people pay a lump sum of wealth, and, in return, the insurance firm provides them with a regular income, like a regular reverse premium, if you like, on the policy. The advantage of a life annuity is that it lasts for however long your life is. That might be not very long if you're unfortunate enough to die early, but, if you live very long, the life annuity can keep going until you pass away."
Retired consulting psychologist Michael Longhurst says some retirees struggle with the loss of their work identity.
He says one way around that is to find what he calls purposeful, as opposed to recreational activities which can act as a substitute.
"If somebody has been very good at managing people, at organising things in business, then, instead of just joining the golf club and playing golf as a recreational activity, that sort of person is often invaluable if they then get onto the committee. So, all of a sudden, here comes the status back.”
With finances under control and meaningful activities giving you purpose, Michael Longhurst says, the only other major tips are to look after your health with regular visits to the doctor and daily exercise.
