Retirement: An On-Going Journey

Retirement is often viewed as a sudden stop from full-time work to total leisure, but reality is different. Many people do not realize that retirement often spans 25 to 30 years.

  • Research shows most people do not quit work forever; phased retirement or consulting is increasingly common.
  • Early, middle, and late retirement look completely different, requiring an adaptable mindset rather than a fixed plan.

What is phased retirement?

  1. Semi-retirement. Stepping down from one’s previous role at their place of employment and becoming a consultant or changing careers to do something different. This type of retirement is a great way to supplement one’s income while also remaining active.
  2. Temporary retirement. This combines the benefits of both traditional retirement and semi-retirement. It’s characterized by working one career for a period, retiring from that career for months or years, and then returning to the workforce. Temporary retirement offers the flexibility to change careers, explore interests, or pick up where you left off.

Three Phases of Retirement

The Go-Go years. (up to 75). This is the time for checking off bucket-list activities. Spending tends to be higher due to increased leisure and travel. Some retirees may even spend more during this phase than when they were working.

The Slow-Go Years (mid ‘70s – early 80s). During this transitional phase lifestyle and energy levels start to slow. Activity levels decrease, and travel may shift from international trips to more local or domestic excursions. This is partly due to declining health and mobility but also reflects a shift in priorities.

The No-Go Years (mid-80s – 90s). This final phase of retirement involves a significant decline in physical and cognitive abilities. Time is spent in quiet reflection and with loved ones. Healthcare expenses and potential long-term care costs typically increase.

Please note: These age ranges and characteristics are not rigid. The onset and length of each phase are influenced by an individual’s health, financial situation, and personal circumstances. When creating your retirement plan, consider your changing expenses and needs in each stage.