Reached midlife? Time to write the retirement rules

If you’ve hit midlife, know your superannuation and investments are in place, and you’re confident that the way you have them invested will allow them to compound in the years before you retire, it takes the pressure off. It allows you to be curious about what work might feel more purposeful and what activities you could pursue that might give your life a greater sense of meaning.

For some, that means shifting from an executive role to a portfolio of non-executive and advisory roles centred around a core area of interest. For others, it is starting a business or stepping into a different field altogether.

It will appeal to some to use their skills in a way that might leave a legacy by working for not-for-profits, charities or social impact ventures. Leaving a meaningful legacy becomes more important in the second half of life, and when I say legacy, I don’t mean leaving your kids an inheritance.

Fifty years ago, life expectancy was less than 70 years. Today, it’s predicted in the 2023 Intergenerational Report that people in their early 50s may live comfortably beyond 90.

A paper presented to the British parliament in January 2023 suggests that 50 per cent of people born after 1971 will live to 100. That’s a huge shift to longevity and it completely changes the game, prompting us to reconsider and redesign the rules that frame the second half of our lives.

If we’ve got a shot at living to 100, then we need to start planning for the second half of life much earlier. Traditional retirement planning, retirement benchmarks and the software of major financial planning groups currently plans to about 88 years.

So the new paradigm is to understand your longevity, and get some
professional advice to craft a robust financial plan that leans into it. Start saving early, diversify your investments, and give them plenty of time to compound.

Plan for pre-retirement

Notice the new phase of life that is emerging before retirement and the slow transition that the journey into retirement can become – embrace it.

Set goals for these prime-time years and go out there and live well while you’re young-ish. Take a sabbatical, or a gap year, buy that caravan and take time to spend with your partner, kids and young grandkids. Don’t wish
away your best years. Be deliciously present in your midlife.

Keep learning

Too many people reach midlife and say to themselves “I’m too old to go back to university” or “I don’t have time to benefit from course and a change in career direction.” Those are the old rules.

Challenge yourself to keep expanding your mind, your interests and continued education that will drive your fulfilment. You might just have decades to use all that knowledge and experience yet. You might have a whole third-act career ahead.

Portfolio life

Think about how you can reshape your skills and leverage your experience to land you in more flexible, enjoyable work and charitable roles. It is only under the old rules that work must stop completely and never start again.

Portfolio careers are the ideal option for those who want choice, flexibility and excitement in their second half of life. A portfolio career comprises a variety of roles rather than a single job for a single organisation.

Your portfolio could be made up of a mix of paid and unpaid roles, and temporary and long-term tasks.

Build on your capabilities, and build up your portfolio so you can work on the things you choose for longer than previous generations, and reap the benefits, financially and socially.

Make your health your wealth

Living longer requires a strong focus on health. Regular exercise, a balanced diet, and proactive preventive healthcare should become integral parts of everyone’s daily life. Invest time and effort in maintaining your physical, cognitive and mental health, with deeper self-awareness of when you’re letting things slip.

Embrace community

The longest, happiest lives in the world are lived in villages and towns where there is a very close-knit sense of community.

So take the time to nurture your relationships and build lasting bonds with family, friends, and the community you live in.

Invest in meaningful connections, and build a network of people around you that supports and enriches your life. Social isolation is one of the biggest issues among today’s older generations and that needs to change with us.

Lean into change

The only constant in life in the 21st century is change, and adapting to it gracefully is vital. Cultivate resilience, be open to new experiences, and welcome change as an opportunity for growth and discovery.

Gone are the days when we could age bitterly. Consider the concept of ageing curiously instead. It’s much more appealing.

Bec Wilson is the author of How to Have an Epic Retirement and the host of the new podcast, Prime Time with Bec Wilson.