Dear Workforce How Do We Help Retiring Employees Make the Transition

Dear Lost:

While many organizations spend time educating their employees about their retirement benefits, few take the time or money to help ease the transition for employees moving from work to retirement.

There are a number of issues to deal with as an employee begins retirement. For many people, work is the centerpiece of their lives and a big part of their identity. Although retirement sounds like fun, the reality of this major life change can be very frightening and stressful.

Not only does the financial picture change, but so does lifestyle. The better planned a retirement is, both in financial matters and lifestyle, the easier the transition will be. Here are a few things to help your soon-to-retire and recently retired employees make the passage into their new lives easier and more successful:

Financial planning. The biggest stressor can be the concern over not having enough money to do the things they want to do in retirement. Helping pre-retirees and those already retired to understand their expenditures will help them to create a realistic financial plan that includes future income, health costs, housing, hobbies and vacations.

Lifestyle planning. When offering pre-retirement planning to employees, make sure to cover lifestyle issues as well as financial planning, including:

• Keeping up a daily routine.

• Maintaining and renewing relationships.

• Redefining who they are.

• Following their passion—through new work, new interests, volunteering.

• Making good health a priority.

• Managing through any transitional depression. 

Transitional planning. Provide resources to help with the transition:

• Make sure to include spouses in retirement planning meetings and mailings.

• Provide resources to help employees find a good financial advisor.

• Offer a one-year free membership to retirement organizations.

• Provide reading materials. Good books include Transitions: Making Sense of Life’s Changes, by William Bridges; and How to Retire Happy, Wild and Free: Retirement Wisdom That You Won’t Get From Your Financial Advisor, by Ernie J. Zelinski.

SOURCE: Nenette Kress, Segal/MGC Communications, New York

LEARN MORE: Please read “Post-Retirement Money Management” for more on this issue.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.