If You're In Your 50s Or Nearing Retirement, Protecting Your Well-being Is As Important As Protecting Your Savings

There's a hidden epidemic that might be lurking in your future: Stress, which doesn't retire when you do.

Retiring from working might eliminate one stressful aspect of life, but the sudden lack of structure and purpose can have detrimental effects on emotional and psychological health.

It's important to retire into a life that's structured differently, but still structured. Whether that means maintaining a schedule of volunteering or socializing regularly, retirement with purpose is preferable to a purposeless existence.

AARP research suggests that feelings of financial insecurity are on the rise among those ages 50 to 64.

The same research also suggests that financial insecurity isn't necessarily tied to income, but stems from experiencing "financial shocks," such as losing a job, encountering an unexpected but significant expense, market volatility or even losing money due to fraud.

The sandwich generation is squeezed from both sides

Financial shocks in midlife can also take the form of caring for aging parents while also helping children who are entering adulthood.

Most people realize they might need to eventually help their kids through college or in buying a first home, but not everyone realizes that they might have to do that while helping their own parents.

This sandwich generation provides financial, emotional and sometimes physical support to both kids and parents in a juggling act that's potentially exhausting and can lead to emotional burnout. Add financial strain, and retirement becomes far less tranquil.

Another AARP report further suggests that emergency savings are the key to feeling less financially insecure later in life.

Conversely, the presence of debt and a lack of retirement savings increase feelings of financial insecurity in midlife. It's never too late to pay down debt and increase savings, and the benefits of doing so will be numerous as you age.

Isolation has a price tag

Loneliness comes at a cost. Research from the U.S. Surgeon General suggests that social disconnection poses a health risk comparable to smoking 15 cigarettes a day.

Retirement shouldn't be the time when you metaphorically drop off the face of the earth and stop socializing. If anything, it's a time to strengthen social connections and actively seek ways to be more involved.

Whether they realize it or not, some people try to fill the social void with overspending, leading to compounding problems. According to Psychology Today, research suggests that loneliness can increase materialism, which can further increase loneliness. It can be a vicious cycle.

Building social networks can be just as important as building your investment portfolio when it comes to living a long, happy life. Isolation in retirement isn't solved by reaching into your wallet; it's solved by reaching out to other people.

Financial shame keeps people silent

By some estimates, debt in the 50-plus demographic has nearly doubled in the last decade. It's a problem that many people live with, but few talk about because they're embarrassed.

That embarrassment can sometimes lead to avoidance, which can quickly become a bigger problem because people don't seek solutions, so the problem grows.

Avoidance and money management are a bad combination, especially among those who should be spending this time preparing for retirement.

Recovering from financial shame starts with knowledge and open communication. Stop avoiding your finances and start creating a plan.

Transparent conversations with your financial adviser and those close to you can reveal solutions and ease the burden of stress that can come with willful avoidance.

The new wealth equation includes well-being

True financial planning should be a holistic plan that takes mental health into consideration. Wealth isn't just numbers in an account; it's also your ability to enjoy life.

A comprehensive budget should include time for things that can accentuate your life, such as therapy when appropriate, relaxation and community. If your money plan doesn't protect your mind and well-being, it's not protecting your life.

Speak with your adviser to set up a plan to create the midlife experience you want — one that is rich with community engagement, fun events and a financial plan that moves you toward the life you want.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.