What is retirement? Traditionally this is when you have reached retirement age (set by the government), stopped working and receive a pension instead of a wage or salary. It was supposed to be a transition to a new chapter, with more time for personal pursuits and relaxation. Time to travel, socialise, join clubs and groups that meet during the day, lunch with friends, help with the grandkids, and take up new hobbies.
However, although still relevant, the retirement demographic is shifting.
An increase in life expectancy is altering traditional retirement models. There is a growing trend towards changing retirement lifestyles, including working longer or taking on part-time work to subsidise lifestyles, volunteering in the community to stay engaged, community living, and continued education to follow interests or to keep pace with technological advancements.
This shift reflects a broader desire for more active, engaged, and purposeful retirements.
In New Zealand, a significant and increasing number of people are working past the age of 65. Stats New Zealand reported that in the 2023 census, 24.1% of those aged 65 and over were employed. This trend is expected to continue to grow as our population ages and our life expectancy increases.
Health is always a factor, so for some retiring is a necessity. However, for many, continuing a lifestyle they enjoy, social connection, a drop in household income after a partner passes, or continuing to save for longer retirement years has become a major motivator for working well into their golden years.
No matter what your circumstances, having a retirement plan and knowing what you need to do now to achieve your goals makes sense. As a growing proportion of the population ages, we are constantly being reminded to prepare for a retirement that we choose rather than one we fall into by default.
But none of us know what tomorrow holds, so remember to enjoy your todays. In planning for your retirement allow enough now to still be able to live in the moment too.
Let’s all slide into retirement, whenever that may be, with a smile and no regrets.
