24/7 Wall St. Key Takeaways:

• Retirement is just as much about mental preparedness as it is about financial preparedness.
• Sadly, many workers avoid retirement due to anxiety – not because they haven’t saved enough money.
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

There is one type of post I see on Reddit a lot. Even after amassing a high net worth, many individuals still have difficulty retiring. It doesn’t matter how the math works out! There is a very hard mental shift between saving and spending.

For those who have been saving up wealth for years, turning around to spend that wealth is often one of the hardest shifts they have to do.

In one recent Reddit post I read, the individual was in a very similar situation. He has a net worth of $9.4M and plans on moving to lower his monthly expenses. Despite this, he’s very worried about actually retiring.

This issue is surprisingly common. Let’s break down why and look at how to adjust for it:

Shifting from Saving to Spending

Those who have accumulated wealth over decades have a very hard time drawing from those investments. The mindset shift from watching those savings numbers grow to watching them dissipate creates a sense of vulnerability.

In the case of this Reddit user, they’ve accumulated $7.6M in liquid assets and have followed a careful financial plan. Now, the prospect of using that money to fund their retirement might feel unnatural.

They have been growing for so long that transitioning into spending mode is very anxiety-inducing.

Fear of the Unknown

The future is one giant unknown. Healthcare costs, changes in the economy, potential market downturns, and unexpected life events all loom on the horizon. Worse yet, these things will happen. It’s just a matter of when.

Understandably, retiring to live off your savings is hard when you know these shakeups are coming.

Even if you have plenty of money to retire and a diverse portfolio, the fear of outliving your savings can loom large.

Lifestyle Adjustments

Retirement isn’t just a financial decision. It’s also a lifestyle change. For many people, the structure and meaning they get from work is huge. Leaving that all behind, even when you’ve been working towards retirement for years, is easier said than done.

The Redditor has clear plans to travel and wants to spend time with his family, but that doesn’t always fill the gap work leaves behind.

Shifting into Retirement Mode

The anxiety that comes from retirement isn’t always related to the financials of doing so. Often, it’s more about shifting your lifestyle and mindset. Waiting a few years and getting even more money won’t help this underlying anxiety.

Many people will continue working well past when they need to because of all these mental hangups. All the money in the world won’t cover the anxiety of retirement.

If you find yourself in a similar situation, it’s important to admit that you’re anxious despite all the numbers adding up. These feelings are normal. Working with a retirement coach or financial advisor can help ease the transition into retirement.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.