Transitioning into Retirement – Embracing the Opportunities

Guest article by Chris Beardsley, Director of Performance Matters

The transition from work to retirement is a significant change, and one that many of us find challenging. Although individual choices regarding when and how to retire vary widely, it is important to consider what we’d like from this new phase of life.  Planning for retirement can enable us to adjust well and maintain, or even increase, our quality of life. Exploring the realities of our situation and confronting any potential challenges before we leave the workforce can empower us to move into retirement in a way that’s proactive rather than passive.

There is no official retirement age in New Zealand, although people will be eligible for NZ Super payments from the age of 65. Naturally around this age, people will start to consider the difficult question: When is the “right” time to retire? Research shows that most of us spend more time planning our annual holiday than we put into the non-financial aspects of retirement planning. However, it is important to consider this life transition carefully, as this  phase of life will likely  last decades and retired people will want to be satisfied with the way they spend their time and their productivity.

Some issues faced by retirees

Studies show that people who retire without planning appropriately have the following experiences:

• 50% report that their lives don’t improve after retiring
• a large percentage continue to miss their old jobs
• for many, lost workplace friendships are not replaced by new friendships
• many people spend less time socialising than they did when working
• nearly half of those who retired five or more years ago have not found a new passion or focus

When we retire, we transition from a familiar workday, to a life lacking many of our familiar routines. This is a significant change to navigate, especially for those whose core identity has been career-focused. Retirement can bring feelings of isolation, especially for those who have spent a large part of their lives working and building relationships with colleagues. The lack of social interaction and purpose can lead to feelings of boredom and loneliness, which can be difficult to manage. Another challenge of retirement is the loss of structure that often comes with leaving the workforce. Many retired people struggle to find a sense of purpose in their daily lives, which can lead to feelings of boredom and depression.

Life expectancy tables show that a female retiring in 2025 at age 65 will have a median life expectancy of 90 years and a 25% chance of living to 95. For a male the equivalent, ages are 88 years median life expectancy and 93 for the top 25%.

With a significant number of active years ahead without paid work as the main focus, it’s important people find new sources of satisfaction and meaning. Our world can expand as we explore new directions or realise dreams that have been deferred during our working lives. Some things to consider are:

Pursuit of hobbies and interests: Retirement can provide the opportunity to pursue hobbies and interests that may have been neglected while working.  Whether it’s taking up gardening, painting, traveling or playing a musical instrument, exploring new interests can be a great way to stay active and engaged.

Volunteer: Volunteering is a great way to give back to the community, meet like-minded people, and stay engaged. Many organisations and non-profits are in need of volunteers, and retirees often bring a wealth of experience and knowledge to these organisations which allows them to continue to thrive.

Exercise: Regular exercise is important for both physical and mental health and can help people avoid boredom and stay active. Whether it’s walking, swimming, cycling or practicing yoga, finding an exercise routine that is enjoyable can provide a sense of purpose and structure to the day.

Learn something new: Retirement can be the perfect time to learn something new, whether it’s a new language, skill or subject. Taking a course, attending a workshop, or enrolling in a class can provide a sense of accomplishment and help people stay active and engaged.

Travel: Traveling can be a great way to experience new cultures, meet new people and broaden horizons. Whether it’s taking a trip abroad or exploring new destinations within the country, travel can be a fun and enriching experience.

Spend time with friends and family:  Spending time with friends and family can be a great way to stay connected and avoid feelings of loneliness and boredom. Whether it’s hosting dinner parties, taking day trips, babysitting grand-children or simply enjoying time together, spending time with loved ones can be a source of joy and fulfilment.

Lifestyle Planning

While your financial adviser will ensure you have a financial strategy for your retirement years, it is also important to consider a lifestyle plan.    A lifestyle plan for retirement focuses on the non-financial aspects of life after work, emphasising personal fulfilment, health, and social connections.   It involves envisioning how you want to spend your time, identifying hobbies, activities and personal goals that bring joy and purpose. A strong lifestyle plan may prioritise physical and mental well-being through regular exercise, healthy eating and continuous learning. It also includes nurturing relationships with family and friends, engaging in community activities, and exploring passions like travel, volunteering, or creative pursuits. By creating a lifestyle plan, both singles and couples can ensure a meaningful, balanced and enriching retirement beyond financial security.

As with any plan, it is important to take time to consider how this will work best for you personally and what needs to be put in place to achieve your plan.    This will give you the best chance to have a successful transition into retirement.

About the author:

Chris Beardsley, Director of Performance Matters Ltd has over 25 years of experience as an educator, trainer, manager, facilitator and coach. She has been conducting pre-retirement planning courses in organisations for ten years. Unlike many other programmes, her pre-retirement planning course doesn’t focus on the financial aspects of retirement; instead, it invites participants to explore what a socially, emotionally, and intellectually fulfilling retirement would look like for them.   The intention of this programme is to create a vision for those retirement years, and a practical plan to take it from ‘wish list’ to reality.

Chris welcomes enquiries from businesses and other interest groups regarding this course.

Contact: chrisbeardsley@outlook.co.nz