In a world where retirement is often depicted as a cliff edge, dividing the prosperous from the destitute, two contrasting viewpoints emerge: that of the product salesperson and the life planner.
The former capitalise on fear, painting a grim picture of half the population hurtling towards disaster. They warn of pensioners toiling away well past the State Pension Age (SPA), their savings are inadequate, forced to cling to the treadmill of work or facing the indignity of unemployment due to their age. Their solution? Empty the pockets of the younger generation to avert this impending crisis, filling their own coffers with commissions disguised as adviser charges. The narrative is one of doom and gloom, where pension pots are essential for survival on the precipice of poverty.
However, the life planner sees things from a different perspective, drawing inspiration from the “Plan de Vida” concept in the Nicoya Peninsula of Costa Rica. Here, old age is embraced as an opportunity for continued economic activity well into one’s nineties. It provides purpose and a profound sense of meaning in life, contributing to longevity and well-being. The Nicoyan way of life centres around balance, connection to nature, community, and family. It promotes physical, mental, and spiritual well-being through active lifestyles, nourishing diets, and positive mindsets.
Nicoya’s “Plan de Vida” philosophy has been interwoven into the fabric of the community, shaping social interactions, health practices, and cultural events. Similar principles are found in other Blue Zones worldwide, where people live remarkably longer and healthier lives than the global average. Rather than fearing retirement, the emphasis is on living purposefully and fulfilling lives.
The recent research from the People’s Partnership, a YouGov survey of 2,139 adults undertaken between May 17 and 18, 2023, reveals a significant contrast in the outlook of UK adults. Almost half of working adults anticipate working beyond the state pension age, with 7 per cent believing they may never retire. Meanwhile, less than a quarter express confidence in their pension savings’ sufficiency for their desired retirement lifestyle. This lack of certainty stems from the prevailing cost-of-living crisis and the resulting financial insecurity faced by many individuals.
To address these concerns, the pension provider, People’s Partnership, suggests building upon the success of automatic enrolment and expanding its reach to include more people by calling on Government to increase the minimum auto-enrolment contribution rate from 8 per cent to 12 per cent of earnings, as soon as we are through the cost-of-living crisis. However, amidst these discussions, one question remains: Shouldn’t we adopt a more positive view of retirement?
Rather than burdening the financially vulnerable with reduced take-home pay during a time when wages struggle to keep pace with the rising cost of living, perhaps we should take a page from the Nicoya Peninsula’s book. Encouraging individuals to view retirement as an opportunity for great achievement and meaningful expression could reshape the retirement narrative. By fostering a culture that values purpose, well-being, and connection, we can empower individuals to approach their later years with optimism, embracing the potential for continued economic activity and personal growth.
In doing so, we can reshape the retirement landscape, inspiring individuals to create their own “Plan de Vida” that prioritises balance, purpose, and fulfilment. Rather than succumbing to fear and emptying their pockets to appease the pension provider’s dire warnings, individuals can forge their own path towards a rewarding and vibrant retirement, supported by a society that values their contributions and honours their aspirations.
Academy of Life Planning 