For many professionals and business owners, retirement is seen as a reward for decades of hard work and success. But once the financial planning is in place and “The Plan” is in action, another set of questions begins to emerge. Who am I without my work? What will give my life purpose now? How will my relationships—family, friends, former work colleagues—evolve? Retirement is not a single moment; it is a journey made up of evolving chapters.
It can be useful to look at three typical stages of retirement:
The Go-Go Years — typically ages 60–75 (15 years)
These are the lively, high-energy years of early retirement, with good health and funds available. It may be time to travel, explore new hobbies, give something back (like volunteering or carrying out charitable work), or consider consultancy or a board role.
For many career-focused individuals, this stage involves a quiet, internal shift. After years of structure and achievement, retirement can prompt questions of identity or how you now define or label yourself, e.g. “I used to run my own business.”
Often during this phase of your retirement, purpose is driven by new activities or projects, spending time with family, or channelling energy into something meaningful such as your local community.
There is more time for your partner, your children, and your grandchildren, but this could bring its own challenges. More time may amplify differences in how you and your partner envision your future. The rate of divorce for those over the age of 60 has been steadily rising for many decades. Discussion and considerations around “Your Plans,” “My Plans” and “Our Plans” can be worthwhile.
Spending patterns during this retirement phase are likely to be at their highest for the greatest period. Seeing your assets and investments during this stage decreasing in value should not necessarily be overly concerning.
The Nesting Years — typically ages 75–85 (10 years)
Statistics suggest that during this life stage the pace of life slows. The desire for consistency of routine and strong family relationships and friendship groups becomes increasingly important. Travelling overseas often becomes less appealing, and the need to constantly achieve or pursue goals can become less prevalent.
Downsizing to a smaller property or making alterations within your home may now be appropriate, as one-level living may move up on your to-do list.
From a spending perspective, the call on your savings and investments is likely to be less demanding than during the Go-Go years, potentially allaying concerns around greater expenditure in the earlier phase of retirement.
The Legacy Years — typically ages 85+ (6 years assumed)
This phase of retirement is often marked by increasing dependency—both physically and sometimes cognitively. It is important to address “put off” or tricky discussions with your loved ones around your views, concerns, and preferences. Ensuring you are surrounded by trusted people, in an environment that reflects your values, is vital.
Expenditure can again escalate, often for a fixed period, with the cost of later life care—be that within your own home, or in a residential or nursing home.
Retirement is about several different phases. What will you do to encourage yourself to throw back the duvet in the morning and embrace life? A strong financial plan provides the foundation for your retirement. Living life on your terms will provide purpose, rather than drifting or floating through your important post-work years.
If you want assistance, guidance, and advice with your planning, get in contact for an initial discussion.
