In many ways the first few weeks of this self isolation feels like more people are living like those who are retired.
The similarities between the current lockdown and retirement
1/. People are now watching their spending more closely
Many people have lost their jobs, and many more are close to losing their jobs. These times of uncertainty has created a lot of panic from people about their current financial situation and how they will survive without a job.
Sure, having shops closed helps, but it appears many are looking for ways to cut unnecessary costs. For many retirees, keeping a lid on expenses is very important.
2/. A lot of people are off work at the moment
This means a lot more time on our hands. Many people pursue financial independence for the extra time it creates. Financial independence reduces the need to work in a high paying undesirable job, creating more time for more enjoyable things. That could still be work, or it could be anything from volunteering to getting fit to gardening to travelling.
Sure, we can’t do everything on our desired lists at the moment due to the lockdown rules in effect. But what we do have is a bunch of time on our hands. We can learn new skills on you tube. We can build or fix things around the house. We can set ourselves exercise challenges. We can learn to cook new dishes. We can spend valuable time with those in our bubble or on the phone to friends and family. You could even use this time to pick up an online qualification in a field that excites you.
For those who really can’t think of things to do it is a wake up call. Many people only think about the money side of retirement, but disregard what they will actually do. They find they leave their job and are bored out of their brain. They aren’t being stimulated and they have no reason to get up. Use this period of the lockdown to think about what you want your retirement to look like.
3/. When you retire early you may be somewhat socially isolated
Obviously not to this extreme, but when you are at home on the weekdays all your friends and family are probably out working. This can result in some form of social isolation. This is actually a shock to many retirees. They don’t realise how reliant they were on work for social interaction and that is one thing they miss when retired.
4/. Health benefits
Retirement isn’t much fun if you aren’t healthy. With extra time available, keeping healthy is much easier. For one, you aren’t chained sitting at a desk all day. It really has been nice seeing so many people out and about walking (safely of course) during this period and far less cars on the road. That can only be good for overall health.
With restaurants and many takeaways closed, people are forced to cook at home now. Not only does this save a lot of money, but it is also much healthier.
5/. Spending more time with your spouse or loved ones
For those who have a partner you are living with, you are now probably spending more time with them in close quarters than you ever have. This is just like early retirement too. This is a good test drive for how mad you may drive each other and if it is time to start thinking about separate interests.
Final thoughts
Don’t get me wrong. This is not a fun time for many people. Especially for those losing their jobs and even lives. However, there are some learnings here that can be linked to how successful a retirement you will have. We learn a lot about ourselves when pushed into uncomfortable situations.
The fact that nothing is open, and we can’t travel very far makes for a hard existence and makes this lockdown a very extreme version of retirement. Despite some similarities worth considering, this is the hard version of retirement. We are getting all the downsides of social isolation, down markets, additional kid responsibilities and no travel.
This in my opinion, is what is what will make retirement so enjoyable. Despite all the restrictions at the moment, I am still enjoying my time. This isolation is only a teaser.
If you need help with your personal retirement planning, then get in touch today.
The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here