By Caroline Hartigan BFS CFP® QFA
Here’s something the financial planning industry in Ireland doesn’t say enough: a technically perfect retirement plan can still leave a person miserable.
For example, we’ve seen it firsthand. A well-funded ARF. A clear drawdown strategy. Income mapped out to the euro. Yet, six months into retirement, someone quietly admits they don’t know who they are anymore.
In other words, the financial plan worked, but the life plan didn’t exist. As a result, this creates a gap nobody talks about. And, unfortunately, it happens more often than the industry admits.
Meanwhile, the retirement identity shift in Ireland is both real and widespread. However, it remains largely absent from mainstream planning conversations. In fact, research shows that up to one in three people face a psychological crisis within two years of retiring, not because their money ran out, but because their sense of purpose did.
Closer to home, fewer than half of Irish adults approaching retirement feel emotionally prepared. Even so, many of them are financially on track. Over time, the profession has improved income strategies. Yet, the personal side of retirement remains largely uncharted.
What 30 years of being “someone” does to a person
After 30 or 35 years as a professional, business owner, or tradesperson, you don’t just retire from a job. Instead, you retire from a version of yourself.
As a result, the structure changes. The social circle shifts. Professional status fades. Most importantly, people often lose their sense of being needed all at once.
Because of this, we often hear the same concern from clients a few years before retirement: “I know the money is probably fine, but I don’t feel ready.”
Importantly, that feeling isn’t irrational. Financial readiness and personal readiness are entirely different. Therefore, the gap between them is where retirement grief often lives.
So, three fears come up again and again, and they’re worth naming honestly.
The fear of running out of money
Even with a strong pension, a well-managed ARF, and a State Pension, the shift from saving to spending feels unsettling. In particular, watching your balance fall can trigger loss aversion.
As a result, this reaction has little to do with actual numbers. Instead, psychology drives it.
Consequently, this leads to the “one more year” trap. You convince yourself you need more time to feel safe. Over time, the goalposts move, and years pass.
In fact, we’ve seen people delay retirement by years due to anxiety alone, not because their plan required it.
The fear of losing relevance
“What do you do?” is a question most people answer with ease. However, retirement removes that answer overnight.
As a result, people often underestimate the impact of losing a professional title or no longer being the person others rely on. That is, until it actually happens.
Although the grief is real, society often frames retirement as a celebration. Therefore, people feel they shouldn’t struggle. Because of this, they stay silent, and the feeling lingers.
The fear of everything unfinished
For instance, people often leave an old pension from a past job untracked. Or they rely on a will written years ago. Or they delay setting up an Enduring Power of Attorney. Additionally, health insurance may end with employment.
Over time, these tasks are easy to delay. As a result, people push these tasks aside year after year until retirement suddenly becomes real.
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Disclaimer: This content is for informational purposes only and does not constitute financial or legal advice. Always seek professional guidance before making decisions.