Why Retirement Isn't the Destination – It's Just the Beginning
As financial advisers, we often hear clients express how they’re eagerly anticipating retirement. After all, it’s the golden chapter of life we spend decades working towards—freedom from the daily grind, more time for family and travel, and the opportunity to fulfil long-held dreams. But what if that sense of freedom and lasting happiness we expect in retirement isn’t as permanent as we thought?
This brings us to a concept called the "Arrival Fallacy".
Coined by Harvard psychologist Tal Ben-Shahar, the Arrival Fallacy refers to the mistaken belief that once we achieve a specific goal—whether it’s reaching a financial milestone or retiring—we’ll experience ongoing happiness and contentment.
The reality, however, is more complex. While the moment of achievement is undoubtedly exhilarating, that feeling can quickly fade, leaving us wondering, "What’s next?"
The Challenge of Retirement: More Than Just Financial Planning
Many retirees encounter this phenomenon once they step away from their working lives. After the initial celebrations and relief, some are left feeling uncertain or restless. With career goals behind you, where do you direct your energy, focus, and sense of purpose?
This isn’t a result of poor planning or lack of preparedness—it’s human nature. We’re often conditioned to believe that reaching a particular milestone, such as retirement, will lead to lasting happiness. But once we arrive, the joy can be fleeting because life keeps moving forward. The goals we once held dear have been achieved, but now there’s a need for new meaning and purpose.
Consider Working, but on Your Terms
An often-overlooked option for many retirees is to continue working, either by reducing their hours or changing to a role that brings them joy and fulfilment. Retirement doesn’t have to mean a complete exit from the workforce. In fact, several people, even into their 80s, continue to work—not because they need the money, but because of the benefits it offers.
For some, working provides structure, mental engagement, and a continued sense of purpose. Staying in the workforce, even in a part-time or volunteer capacity, helps maintain a connection to society and allows retirees to use their skills in a productive way. It’s not about financial necessity; it’s about staying active, engaged, and feeling like a valuable member of the community.
This approach can be incredibly rewarding, offering balance without the pressure of working full-time. For those who enjoy the routine, social interaction, and intellectual challenges work provides, continuing in some capacity can significantly contribute to a more fulfilling retirement.
Financial Freedom is the Key to Living Life to the Full
At this stage of life, it's essential to shift your perspective. The wealth you’ve accumulated is not just a measure of your success but a tool to enhance your quality of life. Retirement isn't about "arriving" and stopping; it's about using your financial freedom to create experiences, contribute to causes, or pursue passions that may have taken a back seat during your working years.
We often tell our clients that retirement planning isn’t just about making sure your money lasts—it’s about ensuring you live life to the fullest. Whether it’s exploring new hobbies, spending time with loved ones, or continuing to work in a way that brings joy, your financial resources should support a life rich in experiences and purpose.
Embracing the Journey, Not the Destination
To avoid falling into the trap of the Arrival Fallacy, retirees need to embrace the idea that life is not a destination but an ongoing journey. Achieving financial security and reaching retirement are significant milestones, but they’re not the end. Setting new goals, finding fresh sources of purpose, and focusing on experiences that bring genuine fulfilment are essential.
Here are some ways to stay engaged after retirement:
Explore lifelong learning: Pick up new skills or dive into a subject you’ve always wanted to learn about.
Consider reducing work hours or changing roles: If work remains a source of pleasure, continue to contribute in a way that suits your lifestyle.
Give back to the community: Volunteering or mentoring can be incredibly rewarding and offer a sense of purpose.
Focus on health and well-being: This is the perfect time to prioritise your physical and mental well-being, whether through sports, yoga, or meditation.
Build strong relationships: Spend time with family, strengthen social connections, or join new clubs or travel groups.
The Role of Financial Advice in Post-Retirement Life
As financial advisers, our role doesn’t end when you retire. In fact, it’s equally important to have ongoing conversations about how to use your wealth to enrich your life. We work with you to ensure your financial plan supports your evolving goals, whether that involves managing your investment portfolio, setting up an estate plan, or exploring part-time work or volunteer opportunities.
Retirement should be seen not as the final stop but as the beginning of a new chapter filled with opportunities. By understanding the Arrival Fallacy and shifting your focus to living a purposeful, balanced life—whether that includes work, travel, or volunteering—you can truly make the most of your retirement years.
Remember, the wealth you’ve worked so hard to accumulate is a tool for freedom, joy, and fulfilment. Instead of chasing happiness at the “end,” let’s work together to ensure your retirement is the beginning of a vibrant and fulfilling journey.
If you’re approaching retirement or already there and looking for personalised advice, reach out to our team. We’re here to help you plan the next stage of your life—one full of purpose, balance, and excitement.