What does retirement mean today?

Retirement was once considered the final stage of life, but as people are living longer and healthier lives, it’s becoming less of an ending and more of a new beginning. While most people may focus on the financial side of things, what can often be forgotten is what your lifestyle and sense of identity will look like.

Canadians today can expect to live 15 to 20 years longer than previous generations, which means you could spend 20, 30, or even 40 years in retirement.

Regardless of your age or situation, it's important to consider what you want your future to look like so that you can build a plan to make it happen. We’ll explore a few ideas to help you be mentally and financially prepared to enjoy it when you get there.

The piece people may miss when thinking about retirement

When planning for retirement, what often gets considered first is how much money is needed, and what may be left out is the complicated psychological shift that comes with abruptly stopping something you’ve done your whole life.

After lifetimes of work, it’s only natural that our jobs become a big part of our identity. Your career shapes your routine, your sense of purpose, and likely even how you define yourself. And when you retire, that part of your identity is suddenly gone, and the structure, purpose, and social connections you’ve built over decades can suddenly fall away. It’s a similar transition to when your kids move out after years of parenting. The same question arises for many people in retirement: Who am I now?

Without giving yourself the time and space to think about that question well before the transition, and to figure out what might replace work or full-time parenting, it’s easy to feel a bit lost. Retirement can turn bittersweet and confusing because, even if you have the time and money to start a new chapter, your habits and mindset haven’t caught up yet.

The first step in redefining what retirement will mean for you, and avoiding the toll it might take on your mental health, may be to start living the kind of life you want long before you get there.

Why easing into retirement can make all the difference

One of the biggest gaps in retirement planning can sometimes be awareness of the non-financial changes you’ll experience. It can be easy to underestimate the psychological shift, the identity change, and the lifestyle adjustments of retirement and how to tackle them proactively. Not having a plan for how you’ll adjust to these changes can negatively impact your mental and physical health.

By picturing your future and doing more of the things you want in your life now, retirement can feel like a gradual transition rather than an abrupt change. Think about what new hobbies, routines, learning, or community activities you want to do and how they can fit into your life before you retire.

A future built around you

While it’s true that you may have to plan for more years in retirement with life expectancies growing, you may discover that you have so many more choices for how to spend your time. This can be both exciting and overwhelming, which is why having the right tools and financial guidance can be essential for turning your desired lifestyle into a financial strategy that supports it.

Having the answers to questions like “Who am I outside of work?” and “What kind of life do I want?” before meeting with an advisor can help you align your finances with your desired future.

Manulife’s Retirement Redefined can also help you think about retirement from a health, lifestyle, and money point of view, so you won't have to figure everything out at once when it's too late to make any big changes.

A longer life can mean a more intentional one

Retirement planning is changing, and today, it’s about more than just saving enough money. It’s also about maintaining healthy habits, creating a lifestyle that nourishes you, and staying in control of how you choose to live your life.

No matter your age, it’s worth taking the time to think about what you want your future to look like. There will likely be many changes that come with the transition into retirement, whether they’re shifts in your routine, identity, or sense of purpose. Remember, these changes can be just as important to plan for as the amount of money you’ll need to live comfortably.

With the right plan and mindset in place, you can think of retirement as an exciting new chapter in your life, one where direction and purpose are yours to define.