The 34-year-old, who racked up a record-breaking 809 points in 109 caps for Scotland, is moving on to a new ambassadorial and coaching role under the wing of Scottish Rugby kicking coach and former team-mate Duncan Hodge.
His first task is to embark with Hodge on a fact-finding mission to Canterbury Crusaders in New Zealand and Paterson hopes to hit the ground running.
"I need to start on the bottom rung but I'm an ambitious person and whatever I set my mind to I've always tried to do the best I can," said Paterson.
"It is a huge thrill for me. There are so many good colleges out there and so much knowledge of the game.
"I'm not going to set a goal. What I'm doing is learning a new set of skills that can hopefully allow me to become a successful coach.
"I genuinely retired happy and I think that underlines that it was the right decision for me. I can honestly say I was really happy when the final whistle went.
"We got a good win and I got a great reception from the Murrayfield crowd.
"I'm lucky to have such vast experience as a player but I need to learn how to harness that.
"And the game changes so quickly that you have to adapt and learn how to stay ahead of those changes.
"I hope to take elements from all the coaches I've worked under but the one name that sticks out for me is Rob Moffat, my former PE teacher and head coach at Edinburgh, for his knowledge of the game, his enthusiasm and integrity as a person."
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