3 reasons you could benefit from seeing retirement as a new beginning rather than an end

retired couple exploring a city

Do you think of retirement as an “end point” in your life? Find out 3 reasons why it could help to see this chapter as a new beginning full of opportunities.

Arriving at the end of your career is a moment that may feel bittersweet.

While you could be looking forward to enjoying the slower pace and comforts of retirement, it may also be difficult to close the door on a lengthy, successful career.

For some, the loss of a structured routine, social interaction, and a sense of purpose can be tricky to navigate. What’s more, some take an outdated view of retirement, imagining their retired self as an “old person” who can’t pursue all the opportunities they used to – and this might lead to a negative opinion of retired life.

However, in today’s world, retirement isn’t an “end point” but rather the beginning of a lengthy new chapter of your life. Having a pessimistic outlook on your retirement prospects could prevent you from living life to the full.

Here are three surprising reasons viewing retirement as a new beginning, not an end, could be massively beneficial.

  1. Your retirement could span decades

If you retire at 65, according to UK life expectancy data, your retirement could last nearly 20 years – or even longer.

According to the Office for National Statistics (ONS), men who turned 65 in 2020 can expect to live an average of 19.7 more years, with this figure increasing to 22 years for women.

Furthermore, the average number of years a person is expected to live after turning 65 is projected to rise to 21.9 for men and 24.1 for women who turn 65 in 2045.

With these life expectancies in mind, it’s important to remember that your retirement could span decades. So, viewing retirement as a “lifestyle downgrade” could prevent you from seeing that:

  • Your retirement may provide many years to spend with loved ones, including young grandchildren
  • You may have decades to revisit forgotten hobbies, learn new skills, and grow closer to your community
  • With a fit and healthy lifestyle, there’s no need to think of retirement – especially the first decade or so – as a “slowing-down period”.

Taking a “fresh start” approach might enable you to hit the ground running with your retirement plans and could aid in your social, financial, and emotional adjustment to this new chapter.

  1. Retirement is the perfect time to tick items off your bucket list

Working with so many successful clients over the years, we’ve noticed that those with “big careers” often arrive at retirement with the majority of their bucket list left unticked.

Dedicating your life to a full-throttle career has allowed you to accumulate substantial wealth, but it may have meant you missed out on opportunities outside of work that you now want to explore.

Fortunately, there is nothing to stop you pursuing once-in-a-lifetime opportunities in retirement, including travelling to remote travel destinations, visiting family who live abroad, or completing endurance hikes, bike rides, or drives across the UK and beyond.

Looking at the end of your career as an opportunity to fill the time with new adventures might change how you see this chapter of your life.

  1. There are still plenty of opportunities to grow your wealth in retirement

When it comes to your finances, many people associate retirement with wealth decumulation.

You have spent all your life being told to save, invest, and plan ahead for the future. Now that your future has arrived, it could feel counterintuitive to begin drawing from this pot of wealth.

But while wealth decumulation is an essential facet of retirement, that does not mean that growth opportunities have disappeared overnight.

Continuing to build your wealth in retirement could look like:

  • Maintaining part-time work, or starting a small business, in the first decade of retirement
  • Investing in buy-to-let property (if this aligns with your overall wealth strategy and goals)
  • Continuing to invest, even while in the decumulation stage
  • Reinvesting some of your retirement income back into your pension, although contributions may be limited by the Money Purchase Annual Allowance (MPAA) once you have accessed your pot flexibly.

Seeing retirement as a continued wealth accumulation opportunity, not just as a point of decumulation, may help you foster a positive approach.

What’s more, a wealth accumulation mindset is not only helpful for you, but for the next generation too. Keeping your children and grandchildren in mind once you retire could motivate you to:

  • Keep saving and investing tax-efficiently
  • Form an estate plan, including updating your will and considering protection options
  • Set aside wealth to benefit your loved ones, such as establishing a trust.

If you struggle to find your purpose in retirement, keeping those you love in mind might enable you to focus on a new project – one that’s designed to help you keep growing your wealth and offer support to the next generation.

Work with a Kellands financial planner to discover the opportunities waiting for you in retirement

Retirement is far from an end point – it’s a new beginning, and our financial planners are here to help you capitalise on it.

Email us at hale@kelland.co.uk, or call 0161 929 8838.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

Workplace pensions are regulated by The Pension Regulator.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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