I’m retiring this year with a paid-off house and $200,000 annual spending budget – why does it still feel terrifying?

A Reddit user is ready to retire, and she’s in very good financial shape to do so. She’s still nervous, though, and when she spoke of retirement, she described having that “shaky, wobbly, petrified feeling that I get when I walk to the end of a very high diving board.”

The Redditor is 54 and between a life insurance policy she’s receiving from her husband and the money she has invested, she’ll be able to comfortably spend $200K per year at 3.75% withdrawal rate or less (which is just about in line with the 3.7% withdrawal rate experts now recommend).  Her house is paid off, she said she’s very sick of the corporate culture, and she said she has some things she wants to do next.

So, why is she so nervous, and what can she do about it?

Why does retirement feel so scary when you’re financially prepared?

Being financially ready to retire can alleviate many fears when it comes to leaving work, but the financial aspect of retirement is just a small part of your decision. 

When you retire, your life changes in profound ways. Most people’s lives are structured around their job. Their job fills the hours during the day, provides them with social connections, and gives them purpose as well as a paycheck. The paycheck can be replaced by money from investments and other sources of income, such as Social Security benefits. The other things that the job gives you can’t be replaced so easily.

Without a job, the Reddit poster and other retirees will be totally in charge of how to fill their days. This could be a good thing if you have a plan, but it also could be a major challenge if you aren’t self-motivated enough to find meaningful things to do.

Unfortunately, the Reddit poster also said she lost her husband to cancer last year, which means she has already lost one of her most important social connections. Without a partner right now, she will be on her own, and that can be harder without the certainty of knowing you’ll be going to work every day and having people to talk to and spend time with. 

Being afraid to retire is understandable, especially in these circumstances, and it makes complete sense that the Reddit poster would feel very uncertain about what her future looks like.

Overcoming these retirement fears 

The good news is, there are ways to overcome these fears and enjoy retirement.

For those who do worry about what their financial life will be like, working with a financial advisor to create a retirement plan, and to confirm that your finances are actually in good shape to leave work, can be one of the best ways to relieve stress. Working with a professional to decide on things like how to invest retirement assets and what withdrawal rate is safe can make you much more confident in your retirement choices. 

Overcoming other fears about what life will be like in retirement could be done in several ways.  You could research groups, organizations, and social activities in your area to see how you can fill your days. You can talk with friends who are already retired and make concrete plans. You could schedule trips that you’ll take after retirement, or sign up for classes on something that’s always interested you.

You could also consider talking with a mental health professional to define your fears, get advice on overcoming them, and get help setting goals for your future.

By taking these steps, you can ensure that your retirement is as enjoyable as possible — especially if, like this Redditor, you’re in a good financial position to build the life you deserve in your later years. 

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