Advice matters
Reframe retirement planning and start fresh

Did you know that the word retirement derives from the French “retirer”, meaning to withdraw or retreat?

For far too long, retirement has been portrayed as the end of the road, the ultimate period of relaxation following decades of hard work. But what if we reframed the way we think about this life stage? What if we started to view retirement as a brand-new chapter full of possibilities, a time not just for rest but also for rejuvenation and personal growth?

Let’s explore how changing your perspective on retirement can unlock a new dimension of retirement planning.

From sunset to sunrise: reframing the narrative

Retirement is often considered the “sunset years”, a phrase that can evoke melancholy rather than joy. Why not think of it as a “sunrise” instead—a fresh start, a new day where you get to design your life just as you want it.

The way you perceive retirement can significantly affect how you plan for it. Reframing retirement as a new dawn may motivate you to reevaluate what really matters in your life and encourage more proactive planning. You could go from dreading the end of the road to looking forward to the next step.

With thorough planning, you can create the financial independence you need, to pursue what fulfills you.  

A lifestage of self-discovery

Forget about filling your day with endless rounds of golf or knitting (unless that’s what you love, of course!). Retirement can be your personal Renaissance—a time of rebirth.

This could mean approaching your golden years with a zest that might have been lacking when you thought of it as merely an extended vacation. So, ask yourself: What do you want to be when you ‘grow up’?

Write down all the passions, skills, and interests you’d like to delve into. Whether it’s hiking in Nepal, painting, cooking, or writing, the sky is the limit.

Next stop: Build that financial freedom

Financial freedom in retirement is about having the flexibility to live life on your own terms, from travelling to new places, to trying out new experiences.

Once you have a vision in mind, it’s time to work towards creating that financial freedom for yourself. A commonly suggested rule of thumb for retirement planning is the 70-100% replacement income rule. This suggests aiming to save at least enough to replace 70% to 100% of your pre-retirement income. Of course, it’s vital to adjust this figure based on your unique lifestyle plans.

Here are some steps you can take:

  • Assess your living expenses – Start by making an inventory of your current expenses and then project these into your retirement years. Remember to factor in additional costs like travel, hobbies, or any other activities that you plan to take up.
  • Create a retirement budget – Create a budget based on your projected expenses and then use the 70-100% rule to gauge how much you’ll need to save.
  • Review your KiwiSaver plan – Make it a habit to periodically review your KiwiSaver plan, making sure that the KiwiSaver fund type you’re invested in is aligned with your risk profile and retirement goals.
  • Consider additional streams of income – Beyond KiwiSaver, you could look into other forms of investments. The objective is to build a diversified portfolio that’s designed to minimise volatility while offering growth opportunities.

A new adventure awaits

Remember, retirement isn’t about retreating from life; it’s about advancing into a new, exciting chapter. Ready to align your retirement planning with this newfound perspective?

As always, we’re here to help. Get in touch with your SHARE adviser if you’d like to talk about your options. 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.