Today’s retirees seem to be trading the “fountain of youth” for the “fountain of usefulness,” with many stating that it is “more vital to feel valuable than youthful in their retirement years.”1 How about you — What will you do to find purpose in the years ahead?
As we begin a new year, have you considered that planning for the ‘what’ in retirement may be just as important as planning ‘how’ to get there? Many of us work hard, save consistently and invest wisely to achieve financial security in retirement. As wealth advisors, we take this role seriously by helping support clients in this regard. Yet, while we often focus on securing our finances, we may spend less time thinking about how to use the time we will have in retirement. And, with increasing longevity, consider that this may end up being a lengthy portion of life — for many of us, one that could last for decades.
A surprisingly high number of retirees struggle with the transition.2 Many do not realize how much their careers provided a sense of self-worth. Upon retiring, the overlooked benefits of the workplace are no longer there: daily routine, work interactions, social events, leadership status or a professional identity built up over many years. Others find it difficult to adapt to new circumstances, such as changes in relationships with spouses or family members, as more time at home reshapes dynamics in unexpected ways.
Without a doubt, growing older presents a host of new challenges — changes in health, confronting and coping with loss and letting things go, to name a few. However, it also brings new opportunities, including for many the abundance of time. Research continues to suggest that one of the keys to living well during this period is finding a sense of purpose.3 Retirement coaches often highlight the Japanese concept of “ikigai” — loosely translated as a reason to live — suggesting that this focus can help to make retirement more fulfilling or meaningful.4
Does finding purpose lead to better outcomes?
Studies in Japan have shown that ikigai can positively impact health, happiness and productivity, helping individuals cope with stress and even promoting greater longevity.5 Individuals who considered themselves to have purpose were shown to have lower mortality rates and greater lifespans.6 Researchers who study longevity often point to the “Blue Zones” — five areas in the world where people live some of the longest lives. One of these zones is Okinawa, Japan, where it has been suggested that some of the keys to greater longevity are a strong dedication to community and a collective sense of purpose.7 Closer to home, a 2021 study of around 13,000 participants over age 50 associated a stronger life purpose with healthier lifestyle behaviours, slower rates of progression to chronic illness and greater longevity.8 Other studies suggest a similar outcome: purposeful living may have positive health benefits and is, indeed, associated with decreased mortality.9
Of course, the notion of “finding purpose” can mean different things to different people. However, with the luxury of time, retirement offers a unique opportunity for personal growth and exploration. This might include discovering new hobbies, pursuing higher education, continuing to work in a different capacity, volunteering for a worthy cause, becoming a mentor, building new relationships or engaging in more altruistic activities.
What will you do when you leave work behind?
As wealth advisors, we are here to help you plan your financial future so you can pursue whatever you choose. Yet, giving forethought to how you’ll spend this time is equally important. As one retirement coach notes: “You can retire from your career, but you can’t ever retire from life.”10
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3. https://fortune.com/well/2023/07/28/living-well-after-retirement-finding-purpose/;
5. https://www.weforum.org/agenda/2017/08/is-this-japanese-concept-the-secret-to-a-long-life/;
6. https://pubmed.ncbi.nlm.nih.gov/19539820/;
7. https://www.bbc.com/travel/article/20201126-why-so-many-japanese-live-to-100;
8. https://journals.sagepub.com/doi/abs/10.1177/07334648211027691;
9.https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2734064;
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