I did a search on Google for the definition of retirement when I was writing this article. Some of the online dictionaries include words like leaving, ceasing, disappear, depart, quit, withdrawal and seclusion. Wikipedia defined it as the withdrawal from one’s position or occupation or from one’s active working life. It connotes a conclusion, no longer contributing, nothing to look forward to, no more being active and engaged in life, being alone, and simply, the society’s message is loud and clear, we are finished!

In this modern technology era, the traditional definitions of retirement have failed, not only it’s inappropriate, but they are counter-productive.

Face it- retirement is not a great idea and it’s unnatural, people are living longer than before, we can’t just pause, to make an end, not to shine in use, because of an artificial finish line imposed by somebody else! It’s more of a beginning than an ending!

Although the word “retirement” may never be removed from the financial advice industry’s vocabulary, perhaps we can help clients better understand how retirement is changing and alter the words, phrases, and messaging we use to describe this time of life. After all, retirement is, for most people, the single largest investment goal they have in their lives. With the impact from the Covid-19 since 2020, many people are viewing what they value in their lives, and the resulting retirement phase of life to be very much different from the past.

Often, the client’s decision to retire is determined by a number: the portfolio value desired or needed to be able to retire, or a certain age or date at which they want to retire, like what I used to do for my clients. Of course, none of these numbers — portfolio size or age or date — are necessarily wrong. But using numbers-only conditions for this decision is incomplete.

It is incomplete because it fails to factor in the “other side” of retirement — the non-financial side. This side of the retirement equation looks at the mental, emotional, physical, social, and spiritual aspects of life in retirement. If we can help clients first create a vision of what they want retirement to look like, the money and portfolio strategies can then be designed to make the client’s vision come to life.  Remember, your life is not about making money but instead making a life using your money.

Retirement takes money, no doubt. But living a happy, successful, and meaningful life in retirement also takes a well-designed vision of what we want to do and who we want to be. Decide what it will take to define meaning and purposes in your life. Then look at innovative ways to use your resources (money, time, and ability) to live the life you want or partner with a financial planner who can help you articulate and achieve your goals in life.

“What makes today’s retirement ‘new?’

1. Increasing longevity means more people with longer retirements — making retirement a more important stage of life. According to the data from the Department of Statistics, Malaysians’ expectancy rate will be at 85 years in 2050 and 14% of the population is above 60 years old in 2030. And many people will have the opportunity of 20-30-plus years in retirement than the previous generations.

2. Change of their attitudes and aspirations toward retirement. They want to design their retirement on their own terms. They enjoy more opportunities and more choices for shaping retirement to suit their needs and expectations. They seek a retirement that’s more active, engaged, and connected with the world around them.

3. The rapid development of information technology and the emergence of social media have enormous impacts on society as well as people’s views on retirement. Retirement is no longer an ultimatum, either you work or you retire. Remote office, communicative platforms, and teleconferencing, unlimited opportunities available online, are some of the new tools/services available for you to continue to enjoy the work that you like.

4. More people enjoy work-life balance and prefer to have a career plan or a business build around their preferred lifestyle, and not the other way around. Many people do not want to retire from work totally. What they really want is a balance between work and play, a balance between family and personal time, a balance between running about and sitting still.

This brings us to help clients connect their money with how they want to live in retirement by expanding the conversations into new areas that are of current interest and concerns to clients:

If you were to be retired today, what do you think your life in retirement to look like?

If you had all the money you would ever need, how would you live your life differently?

Are there people and causes you would like to contribute your time, passion, and efforts to?

What other experiences that you would like to have while you are able?

How will you fund those experiences in retirement?

Do you plan to launch an encore career or new business?

What’s your game plan should you need long-term care?

How will you pay for the healthcare/medical cost?

With whom do you desire to build more meaningful connections or improve the relationships?

What kind of legacy do you plan to leave behind, for your family or community if any?

What do you want to be remembered for?

Retirement is changing. Many people are retiring from their career professions only to take on new work, as they realize that for all that we give to our work, work gives something back to us, and make us live our life! If we do what we like and like what we do, we will never need to retire from work but instead choose to work as long as we want to, not we have to.

Works may always be a part of our life, at any pace-for whatever periods we choose.

What does retirement mean to you, financial professionals?