Social connectivity in retirement

You prepare your members for the financial aspects of retirement, but what about the social aspects? Although sometimes overlooked, maintaining relationships in retirement is key. Here’s how to help your members stay connected.

You’re preparing your workforce to live longer than previous generations, and that includes considering how they’ll spend their time. Suddenly switching from a full-time career to seemingly endless free time can be jarring, not least of all because some will go from crowded workplaces to empty homes. You can help ease this adjustment.

Nearly 3 in 5 older Canadians feel lonely, and more than 40% are at a more serious risk of isolation, according to the NIA Ageing in Canada Survey, a recent initiative with Manulife as the presenting sponsor. But the loneliness and isolation are also avoidable, if you know to plan for it. A lack of social connectivity can negatively affect physical health and mental wellbeing.

Transitioning from work to retirement is obviously a big financial step, but it’s also a deeply personal one. For workers leaving the job, 12% say it’s an emotional experience. After all, a career can be tied to personal identity and self-worth. Here’s how you can help members secure their social connections as part of their retirement planning:

1. Add social wellness to the plan—The majority of members already say their employer influences their financial decisions, so expanding your guidance to include the social aspects of retirement planning would be easily incorporated. In the same way you advise members to budget for future inflation or health changes, you can also encourage social planning. It’s easy to assume relationships are a standard, but it’s important to remind members that, like all other parts of retirement planning, social connections take intention and effort.
2. Encourage work connections—Establishing friendships in the workplace is common, and indeed, this practice can actually boost retention. Encouraging teambuilding, hobby or sports clubs, and even mentorships can help set a strong foundation for friendships, even off the job. Consider asking recently retired employees to connect with workers who are retiring soon–it could be beneficial for both parties.
3. Support new groups and interests—More than half of retirees say they can now pursue passions they never had time for. Emphasize the opportunity that comes with this period and encourage members to brainstorm hobbies, volunteer activities, travel locations, and more social outings. Some retirees even say their social circle grew after leaving their job.
4. Identify hold-your-hand friends—It’s easy to lose community after leaving a job, but everyone needs an emergency contact for unexpected medical events, accidents, or even just to chat. Motivate members–of all ages–to identify a friend or family member they can count on and remind them to keep their contact information handy.
5. Expand your social circle—One of the top reasons older Canadians give for lacking social engagement is that they don’t have anyone to go with.¹ Plus, the number of seniors participating in any weekly group, recreational, or social activity dropped 17% since just last year. Let your members know that it’s ok to reach out for companionship and they should try and meet fellow retirees to expand their social network.

You encourage a financial plan, but what about a social one? Maintaining connections with family and friends in retirement is critical, but it requires effort and planning, just like managing finances and health. Members look to their employer to help plan their next chapter and encouraging a social plan in addition to other preparations can make a big difference when retirement starts.

Q: How can sponsors improve financial resilience for employees nearing retirement?

A: Employers are in a position to support and provide financial education to help employees nearing retirement. Some group retirement plans give members access to a financial advisor, who can help create a personalized strategy for every budget, even if there's a savings shortfall. They can help account for government resources and existing savings, while also providing someone nearing retirement with options for maximizing their savings while on the job. This professional can also assist with calculating an emergency savings amount and emergency expense coverage.

Q: What health-related planning should be part of retirement readiness?

A: Medical, health, and well-being should be part of every retirement plan. Personal health problems are the top reason for early retirement. Poor physical health can also change the trajectory of a retirement plan and stress finances with care costs. Mental health and wellness are also important, though less discussed. Maintaining social connections with family and friends can greatly impact the quality of a member’s retirement and this factor should be part of any retirement plan.

Q: Why does social connection matter for retirement outcomes?

A: Social connections are critical to the quality of life in retirement. Isolation and loneliness can occur when a regular work schedule is gone. Negative mental health can be damaging and is also tied to physical health and wellbeing. Sponsors can help workers planning to retire soon with workplace-driven social planning tips like encouraging hobbies, volunteering, and mentorships.

Q: What practical steps support ageing in place for employees and retirees?

A: Understandably, many Canadians desire to age at home. However, depending on future health care issues and mobility, there is a question of the suitability of homes. Some locations may need staged upgrades and modifications to accommodate certain conditions. If this is a goal for workers, employers can suggest saving for care as a specific fund.

Q: How should advisors address income timing and confidence in retirement planning?

A: It can be a challenge for advisors to inspire workers and help with confidence in retirement planning. A good starting point is helping the member create personalized projections and identify any income adequacy gaps. An advisor can also help with CPP/QPP timing education and readiness calculators, since understanding their current position and creating a plan can help with concerns.