retirement is not one stage of life
We often speak about retirement as though it is one period of life.
We work, we retire, and then we live out our retirement years. But think about this for a moment.
We work, we retire, and then we live out our retirement years. But think about this for a moment.
Would you expect your life at 75 to look much the same as it did at 60? Or your life at 85 to be much the same as it was at 75?
Probably not.
Yet much of our retirement planning takes place around an event: the day we stop working. We make important decisions about our income, our future activities and perhaps where we intend to live.
Then we call it our retirement plan.
But life keeps changing.
The years ahead may be very different
Imagine someone retiring at 62.
At first, life may be filled with travel, family visits, new interests and the freedom to decide how to spend each day. Ten years later, that same person might be caring for a spouse, working part-time, helping grandchildren or discovering an entirely new interest.
Another ten years later may bring different priorities. Being close to friends, having a suitable home or getting assistance with certain activities may become more important. Or perhaps, at 82, that person is still travelling, running a small business or taking on responsibilities they never imagined.
There is no timetable that tells us when these changes will happen.
And there is something else worth recognising: we do not necessarily move from one stage of retirement to another in an orderly way
At first, life may be filled with travel, family visits, new interests and the freedom to decide how to spend each day. Ten years later, that same person might be caring for a spouse, working part-time, helping grandchildren or discovering an entirely new interest.
Another ten years later may bring different priorities. Being close to friends, having a suitable home or getting assistance with certain activities may become more important. Or perhaps, at 82, that person is still travelling, running a small business or taking on responsibilities they never imagined.
There is no timetable that tells us when these changes will happen.
And there is something else worth recognising: we do not necessarily move from one stage of retirement to another in an orderly way
different parts of our lives change at different times
Consider a woman of 74. She is physically active, enjoys learning and has recently started a small business. In these areas of her life, she may be exploring new opportunities.
At the same time, she has lost her husband and is struggling with loneliness. Her relationships and daily life need attention.
Her financial position may be comfortable, but she is beginning to question whether her house will remain suitable for the years ahead.
Which stage of retirement is she in? The question almost misses the point - her life is moving in several directions at once.
Our health, relationships, interests, responsibilities, living arrangements and financial circumstances do not all change together. Some improve while others become more difficult.
And an important change in one area can affect several others. This is one reason why age alone tells us surprisingly little about how someone is actually living.
At the same time, she has lost her husband and is struggling with loneliness. Her relationships and daily life need attention.
Her financial position may be comfortable, but she is beginning to question whether her house will remain suitable for the years ahead.
Which stage of retirement is she in? The question almost misses the point - her life is moving in several directions at once.
Our health, relationships, interests, responsibilities, living arrangements and financial circumstances do not all change together. Some improve while others become more difficult.
And an important change in one area can affect several others. This is one reason why age alone tells us surprisingly little about how someone is actually living.
what does the research tell us?
Research has found that people follow different paths as they adjust to retirement.
Retirement researchers identified different patterns of psychological wellbeing among retirees. Some adjusted differently from others, and their experiences changed over time. The World Health Organization also recognises that healthy ageing depends on much more than a person's age or medical condition. It includes people's abilities, their surroundings and their opportunities to do the things they value.
These findings raise an important question: If people's circumstances change differently, why should we expect one retirement plan, made at one point in life, to remain suitable for everyone?
Retirement researchers identified different patterns of psychological wellbeing among retirees. Some adjusted differently from others, and their experiences changed over time. The World Health Organization also recognises that healthy ageing depends on much more than a person's age or medical condition. It includes people's abilities, their surroundings and their opportunities to do the things they value.
These findings raise an important question: If people's circumstances change differently, why should we expect one retirement plan, made at one point in life, to remain suitable for everyone?
perhaps we should plan for change itself
Imagine reviewing your retirement plans at 65.
Your circumstances are comfortable. You have good health, close relationships and enough income for the life you enjoy.
At 72, your spouse develops a serious health condition. Your daily routine changes, your responsibilities increase and travelling becomes more difficult.
Your earlier plans may still be useful, but some decisions deserve another look. You might need assistance at home, more time for yourself or different arrangements for managing everyday responsibilities. A change in circumstances does not automatically mean giving up your independence or handing decisions to someone else. It may simply mean finding a different way to continue living the life that matters to you.
Your circumstances are comfortable. You have good health, close relationships and enough income for the life you enjoy.
At 72, your spouse develops a serious health condition. Your daily routine changes, your responsibilities increase and travelling becomes more difficult.
Your earlier plans may still be useful, but some decisions deserve another look. You might need assistance at home, more time for yourself or different arrangements for managing everyday responsibilities. A change in circumstances does not automatically mean giving up your independence or handing decisions to someone else. It may simply mean finding a different way to continue living the life that matters to you.
A useful retirement plan should change with the person, rather than expect the person to keep fitting the original plan.
Three Questions Worth Asking Yourself:
1. What matters most in my life today, and which of these things might change over the next five or ten years?
2. Which parts of my life deserve attention now, even if other parts are going well?
3. If my circumstances change, what would help me keep making choices about how I want to live?
2. Which parts of my life deserve attention now, even if other parts are going well?
3. If my circumstances change, what would help me keep making choices about how I want to live?
These questions matter just as much whether retirement is still years away or has already lasted two decades.
We cannot predict every change. Nor should we spend our lives preparing for every possible difficulty.
But we can remain curious about what lies ahead, recognise when our circumstances are changing and reconsider decisions that no longer serve us well.
Retirement may begin on a particular date.
The life that follows will continue to develop.
The life that follows will continue to develop.
Perhaps the better question is not simply, "Am I ready for retirement?"
It is, "Am I prepared to keep shaping my life as it changes?"
It is, "Am I prepared to keep shaping my life as it changes?"
BetterLived explores retirement through seven connected areas of life and the changing circumstances we experience as we grow older. Its purpose is to help people ask better questions, understand their choices and remain involved in decisions about their lives.
This article provides general information about retirement and life planning. It does not constitute personal financial advice. Discuss financial decisions with an appropriately authorised adviser.