Relishing or resisting retirement

For many, retirement represents freedom – the long-awaited chance to slow down, travel, or finally spend more time with loved ones. For others, it can feel daunting – a cliff edge where the structure of working life suddenly disappears. 

At our forthcoming masterclass, Relishing or Resisting Retirement, we will explore why this transition can feel so different for different people, what can be done to make it a positive and fulfilling stage of life and how engaging with a financial planner can make all the difference. 

Retirement: A new and evolving concept 

One of the first points we highlight is that retirement itself is a relatively modern idea. For most of history, people simply worked until they could no longer do so. The idea of stopping work in later life only really came into focus in the early 20th century, championed by industrialists like Henry Ford, who saw value in creating space for older workers to step aside for younger ones.

In the UK today, there’s no fixed “retirement age”. Some stop around the state pension age, while others retire earlier thanks to personal wealth, inheritances, or business sales. Increasingly, many are working well beyond 65, whether for financial security or simply because they enjoy their careers.

Retirement is therefore less of a date on a calendar and more of a personal decision – and the experience of it is shaped by both financial and emotional factors. Crucially the decision to stop is not always financial! 

The financial pitfalls 

From a financial perspective, there are several common pitfalls we see when individuals move into or “resist” retirement. 

1. Miscalculating income needs. It’s easy to overlook the fact that some costs fall away when you stop working – you no longer pay National Insurance contributions, commute, or save into pensions. Conversely, some expenses rise, especially if you finally have time to travel or pursue new hobbies.

2. Over- or under-estimating investment returns of your pots. Compounding works both ways: small misjudgements in expected returns can lead to large differences in outcomes over time. 

For example, suppose you have a £500,000 pot invested over 10 years: 

At 2% annual growth, it would rise to around £609,500. 

At 5% annual growth, it would grow to about £814,500. 

At 7% annual growth, it would increase to over £983,500. 

The gap between the low and high growth scenarios is nearly £375,000 – enough to dramatically change your lifestyle. This illustrates why realistic assumptions and regular reviews are so important. 

3. Overlooking assets beyond pensions. Inheritances, downsizing property, or releasing equity can make a significant difference to retirement cashflow, but many people fail to (or sometimes in the case of inheritance, refuse to) factor these into their plans.

4. Sequencing risk. One of the lesser-known but critical risks is sequencing risk – the danger of experiencing poor investment returns early in retirement when you are drawing from your pot. Even if markets recover, those early losses can permanently reduce the sustainability of your income. 

5. Inflation and longevity. With people in the UK living longer than ever, retirement pots must stretch further. Inflation compounds the challenge, steadily eroding spending power over decades. These twin risks mean financial planning can’t simply stop at the point of retirement – it must be dynamic and adaptive. 

The human side 

While the numbers matter, finances are only one piece of the retirement puzzle. Equally important are the psychological and emotional shifts that come with leaving the workforce. To thrive in retirement, individuals need to satisfy what psychologists call the six human needs:  

• Certainty – The comfort of knowing your finances are secure, your health is managed, and life feels stable. 
• Variety– With more free time, people need stimulation: new hobbies, experiences, or travel. 
• Significance– Many derive self-worth from their careers. Retirement requires finding new ways to feel valued, whether through volunteering, mentoring, or family roles.
• Connection– Work often provides daily social contact. Retirement can risk isolation unless new social ties and communities are cultivated.
• Growth– Humans thrive when learning and developing. Retirement can be a time for study, skill-building, or pursuing long- neglected passions.
• Contribution– Giving back, whether financially or through time and energy, helps provide purpose beyond self-interest. A fulfilling retirement balances these needs as much as it balances the books. Without this attention to the human dimension, even the most financially secure retirement can feel empty. 

From resisting to relishing 

Ultimately, whether retirement is relished or resisted depends on preparation – both practically and emotionally. 

Those who resist often do so out of fear: fear of running out of money, fear of losing identity, or fear of the unknown. 

Those who relish it will have already taken steps to understand their finances, anticipated the risks, and designed a lifestyle that gives them meaning.  

The question is, where will your journey take you?