How to Prepare for Retirement: The 1-5 Year Countdown

Retirement can be one of the most exciting yet challenging phases of your life. If you're within five years of retiring, the clock is ticking. This isn't the time to coast; it's the time to lean into the transition, ensuring that you're fully prepared for the life ahead.

In our experience, both personal and professional, transitioning into retirement wasn’t easy. We left our corporate careers earlier than expected, and the adjustment period was rough. But, with careful planning and reflection, we found our footing. Now, we want to share what we’ve learned with you.

1. Time for Reflection: Grab a Journal

The first step in your preparation is to start journaling. Yes, this might seem trivial, but writing things down will help you gather your thoughts and clarify your vision. Grab a cheap, lined or unlined notebook (whichever works for you) and start documenting your feelings, goals, and struggles. This practice isn’t just about having something to look back on. It’s about slowing down your thoughts and being intentional in your planning.

Here are some key areas to reflect on:

• Your vision for retirement.
• Your current state of physical and mental health.
• Relationships you want to strengthen.
• Your partnership with your spouse or significant other.
• Your ideas for sharing wisdom and finding purpose after retirement.

Start by asking yourself: Where am I now, and where do I want to be?

Once you’ve started your journaling habit, break it down into different sections. Organize your thoughts around the major pillars of your retirement: physical wellness, mental wellness, relationships, alignment with your partner, and wisdom sharing.

Journaling helps you understand what matters most to you. It gives you clarity on what you want your post-retirement life to look like, which is the first step toward making that vision a reality.

2. Build a Vision for Your Retirement

At this stage, it’s important to have a clearer vision of your retirement. You’ve likely already worked with a financial planner, so now it’s time to focus on the non-financial aspects. What will your days look like when you no longer have a set work routine? How will you fill your time meaningfully?

Think about:

• Travel plans: Where do you want to go, and how will you make it happen?
• Living arrangements: Will you stay where you are, or is it time to think about a vacation home or downsizing?
• Hobbies: What activities will bring you joy in retirement? This is key. Many people struggle in retirement because they haven’t developed hobbies and don’t know what to do with their time.

One of the biggest mistakes people make is waiting until the last minute to think about these things. Don’t be one of them. Use this time to try new hobbies, deepen relationships, and start living into your retirement vision now.

3. Start Thinking About Wisdom Sharing

Retirement doesn’t mean your value to the world is over. In fact, it’s just the beginning of a new phase where you can share your experiences and wisdom with others. At Retirement Transformed, we call this “wisdom sharing.” It’s a process of reflecting on the highlights of your career and finding ways to contribute moving forward.

Here’s a simple exercise to help you get started:

1. Grab a blank sheet of paper and divide it into five columns.

2. In the first column, list all the jobs and roles you’ve had over the past 30 to 40 years.

3. In the second column, write the dates for each role.

4. In the third column, jot down what you loved about each job.

5. In the fourth column, note what you disliked about those roles.

6. Finally, in the fifth column, reflect on what each job taught you.

Once you’ve completed this exercise, pick your top five jobs and start thinking about how your skills and experiences can serve you in retirement. This could involve mentoring, volunteering, or even part-time consulting. The key is to stay active and continue finding fulfillment through your contributions.

4. Plan Your Time

The final five years before retirement will fly by, and it’s easy to feel overwhelmed by all that needs to be done. But, if you focus on your journaling, vision-building, and wisdom sharing, you’ll start to develop a clearer picture of how you want your retirement to look.

Remember, this is not the time to coast. It’s the time to be proactive and intentional. We learned this lesson the hard way. When we retired, we spent a year traveling the world and entertaining family and friends. While it was fun, we eventually realized we didn’t have a purpose. We don’t want that for you.

By leaning into this transition period, you’ll set yourself up for a successful and fulfilling retirement. Use this time wisely to explore hobbies, strengthen your relationships, and plan for the next chapter of your life.

5. Final Thoughts

The road to retirement is different for everyone, but we can promise you one thing: the more prepared you are, the better your experience will be. Retirement isn’t just about financial freedom; it’s about creating a life that brings you joy, fulfillment, and purpose.

Start by reflecting on where you are now and where you want to be. Dive deep into your passions, hobbies, and relationships. And don’t forget to think about how you’ll share your wisdom and stay engaged with the world.

The last five years of your career will go fast. But with careful planning and intention, you can make sure you’re ready to hit the ground running when the time comes.

Call to Action: What steps are you taking to prepare for your retirement? Let us know in the comments below, and don’t forget to join our Facebook community where you can connect with others who are on the same journey!

Watch Our YouTube Video on This Topic:

For a deeper dive into the 1-5 year countdown to retirement, you can watch our video on the Retirement Transformed channel HERE?

Retirement Transformed is dedicated to helping individuals redefine their retirement by focusing on health, relationships, and purpose beyond financial planning. Through engaging content and resources, we empower people to live a fulfilling and intentional life in retirement. Our goal is to support retirees in making this phase of life vibrant, meaningful, and transformative.

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