Starting the retirement process

You may have been planning for your retirement for years or even decades, but it is not always clear to everyone exactly how to begin the transition.  

Some people find it helpful to start with a few key questions:

• Do I have a clear understanding of my expected income sources?  
• Have I reviewed my savings, investments, and any pensions?
• Do I have a plan for healthcare or related costs?
• How would I like to spend my time once I stop working full-time?
• Have I considered how my spending may change in retirement?

Thinking through these questions can help you begin to picture what your retirement may look like and where you may want to focus your attention. From there, you can start to make more detailed plans across your finances, your work transition, and how you would like to spend your time. 

Preparing yourself financially 

Depending on your situation, some people begin financially preparing for this transition several months or even a few years in advance.  

As this stage approaches, it can be helpful to review any government- and employer-provided retirement benefits that may be available to you, depending on your location. Understanding your options may help you feel more prepared as you approach retirement.  

It can also be helpful to think about how your income and spending may change once you stop working. Some people find it useful to map out their expected income sources alongside their regular expenses to get a clearer picture. For example, you may want to consider whether your spending could increase in certain areas, such as travel, hobbies, or other activities you have more time to enjoy.

You may also want to consider creating a budget to help manage expenses once you no longer have a traditional pay cheque. This may include thinking about how much you can spend each year and how long your savings may need to last. Some people find it helpful to plan for the possibility of living longer than expected, so they can feel more confident that their savings will support them over time. Individual circumstances may vary, and financial rules depending on your location.

Officially, you’ll start the retirement process with your employer, letting them know when you plan to stop working. Depending on your employer and how long you’ve worked there, you may need to write an official letter of resignation, document your contacts, processes, and files, and maybe even prepare a replacement for your role. It is likely your employer be happy to work with you to ensure an efficient process for everyone involved.  

If applicable, it can also be helpful to take into account any retirement benefits from previous employers, particularly if they are held across different plans or providers.  

Some people find it useful to seek guidance from a financial professional when considering their options, although approaches can vary depending on individual circumstances and local regulations.

Preparing your transition with your employer and colleagues 

You will typically begin the formal retirement process by letting your employer know when you plan to stop working. Depending on your role and how long you have been with the organisation, this may involve writing an official letter of resignation, documenting key processes, and supporting the handover of your responsibilities. Many employers aim to support a smooth transition for everyone involved.  

As you prepare to leave the workplace, you may need to transfer your responsibilities to colleagues. Make sure your processes and procedures are documented and easy to follow. It can also be a good idea to document less complicated information. You may have built valuable relationships and institutional knowledge that may be worth passing on as well. In some cases, sharing informal knowledge and relationships can be just as valuable as formal documentation.

When it comes to communicating your retirement plans, some people prefer to speak directly with close colleagues. Sending a thoughtful, personalised note to people can be a good idea as well.  

Keeping in touch after leaving work can also be valuable. Whether through email, professional networks, or social media platforms, maintaining connections may help you stay connected as you start your next phase of life or even open up opportunities in the future. In some cases, employers like to bring back retired employees on a part-time or contract basis, so it may be worth keeping some opportunities open.  

Preparing yourself emotionally for retirement  

For many people, work provides routine, structure, and a sense of purpose. For some, retirement is not only a financial change but also a shift in identity, especially if work has been a central part of daily life. As retirement approaches, it can be helpful to think about how those elements might be replaced.  

Take some time to reflect on which aspects of work you value most. For instance, you may prefer routine and structure, so scheduling your days with predictable activities may help you transition to life after work. Or you may get the most satisfaction from helping people and feeling needed. In that case, it may be a good idea to look for volunteer or community opportunities that could put your skills to use.  

Some people explore a gradual transition, such as reducing working hours or taking extended time away from work, to better understand what retirement might feel like.

It may take some time before you find your place, so it can make sense to think about what you want to do in retirement well before your last day at work. You may want to reach out to others who have retired to see what considerations they may have – their experience could provide helpful perspectives. If you have access to an Employee Assistance Program through your employer, consider reaching out to them for other considerations.  

Plans may change over time, and many people adjust their approach as they settle into retirement.  

Final Thoughts  

Preparing for retirement can involve a number of moving parts, from finances to relationships to daily routines. Taking time to think through each area at your own pace may help make the transition feel more manageable.  

Depending on your situation, small steps taken over time, such as reviewing your finances, having conversations at work, or exploring how you might spend your time, may help you build confidence as you move into the next stage of your life.