Retirement has significantly changed over the last 150 years.
The first pension system was invented by Otto von Bismark in the 1880s. At that time, the retirement age was set at 70, even though life expectancy was around just 45 years.
As such, retirement was for those fortunate enough to reach the ripe old age of 70. Though it was often for a very brief period, hampered by declining health.
Today, retirement looks dramatically different.
Instead of the briefest period between work and death, retirement can often span 30 years or more. For the healthiest among us, retirement years are shaped by a vibrant and active lifestyle, lasting several decades.
Sadly, lots of people continue to follow an out-dated retirement model, often viewing it as life’s closing scene. Instead, we recommend a complete change in attitude – as described by Jane Fonda in this Ted Talk: “Life’s Third Act”.
Regular theatregoers will know that the third act typically reveals a more complete character arc, often involving some of the most pivotal moments in a performance.
In the same way, rather than a finale, your retirement should be viewed as the most important and fulfilling segment of your life’s story.
Transitioning from being career-focused to life-focused
If act three is your retirement, then act two represents your working years, and transitioning between them can present a significant challenge.
After decades of being defined by your career and professional role, as a new retiree, you may find yourself questioning who you are now.
And yet, this is where the beauty lies – because this daunting moment of uncertainty presents an extraordinary opportunity.
When you retire, you often step away from following someone else’s script, allowing you to pick up mantle and craft your story.
When you retire, this “fresh page” or “blank canvas” can provide endless potential for freedom – allowing you creative license to depict a life that past generations had little hope of ever attaining.
We’ve had the pleasure of working with countless clients who have rediscovered previous passions. And many of them say they feel more fulfilled now than they ever were during their careers.
So, when you’re preparing to retire, take the time to look within and ask yourself: “What passions or interests have I set aside during my career that I’d like to rekindle?”
By viewing your retirement through this lens, once free of the shackles of your professional role, you can focus on who you want to become now you have the opportunity to embrace your newfound freedom.
4 pillars of your third act
Successful theatrical productions need a great script, a solid stage, correct lighting, and a skilled cast.
Your third act also requires four essential ingredients.
While financial security has probably been among your top priorities, research shows that to enjoy a truly fulfilling retirement, you also need:
- Financial wellness – enough resources to fund your desired lifestyle without undue pressure
- Physical vitality – a healthy lifestyle, allowing you to pursue practices that maximise energy and capability
- Mental engagement – learning new things and setting cognitive challenges can help keep you sharp
- Social connection – maintaining meaningful relationships and getting involved in your community.
Traditional retirement plans tend to focus solely on the financial aspects. While this may equip you to enjoy a well-funded retirement, it may fail to provide meaningful fulfilment.
Ultimately, wealth only truly matters when it’s used to help you enjoy a rich life full of purpose, connection, and vigour.
Successfully directing daily life once you’re retired
Now you understand the four pillars that form the foundation for your fulfilling retirement, the next challenge is to find ways to embed them in your daily life.
Sometimes, unlimited freedom can leave you feeling less than satisfied. When your days are no longer dictated by work, the loss of routine and structure can make it harder to instil shape and purpose into your days.
Three ways you can achieve this are:
- Plan – think about creating a flexible framework for how you'll spend your time and resources
- Purpose – build in regular meaningful events and activities that you’ll find engaging and fruitful
- People – spend time and effort on relationships that provide support and bring positive connection and joy.
These three things can help to transform your retirement from days whittled away without meaning to days spent purposely, allowing you to spend your days pursuing enjoyment and engagement, adding sense and colour to your life’s story.
We here to support you in creating financial security so you can focus on fulfilling your dreams and committing to a third act that leaves you feeling entirely fulfilled, whatever that may mean.
Start by switching away from asking “Do I have enough?” and focus your attention on the story you’d like to tell.
