Introduction
The traditional concept of retirement is undergoing a seismic shift, and not just because of increasing life expectancies. A recent article from FT Adviser highlights the trend of older workers leaving the workforce to “wind down,” citing various reasons such as ill health and family responsibilities. While the financial implications of this trend are significant, there’s another angle worth considering: the opportunity to “wind up” an Ikigai project that creates a sustainable livelihood into old age.
The “Silver Exodus” and Financial Resilience
Chancellor Jeremy Hunt is taking steps to prevent the so-called “Silver Exodus” by making it financially attractive for people to continue working and paying into pensions. However, according to the Great British Retirement Survey from Interactive Investor, 47% of people aged between 55 to 65 are leaving the workplace to “wind down.” The financial viability of this decision is questionable, with only 33% saying they could retire earlier than the state pension age due to savings.
The Ikigai Opportunity
While the financial aspect cannot be ignored, the focus on “winding down” misses an essential point: the opportunity to “wind up” something meaningful. The Japanese concept of Ikigai, which translates to “a reason for being,” offers a framework for this. Retirement could be the perfect time to start an Ikigai project that not only brings joy and purpose but also creates a sustainable livelihood.
Sustainable Livelihoods: The New Retirement Plan
At the Academy of Life Planning, we advocate for a holistic approach to retirement planning that goes beyond financial security. We call this ‘Kokoro,’ a balanced life rich in emotional, intellectual, and spiritual abundance. An Ikigai project aligns perfectly with this philosophy. It could be anything from starting a small business, writing a book, or even launching a social enterprise. The key is to find something that you’re passionate about, that you’re good at, and that the world needs.
The Role of Financial Planners
Financial planners have a role to play in this new paradigm. Instead of merely focusing on pension pots and savings, they should also guide clients in identifying their Ikigai and creating a sustainable livelihood plan. This approach not only enriches the individual’s life but also contributes to societal well-being.
Conclusion
The “Silver Exodus” is not just a financial issue; it’s an opportunity to redefine what retirement means. By shifting the focus from “winding down” to “winding up” meaningful projects, we can create a new retirement model that is not only financially sustainable but also enriching on a personal and societal level. It’s time to look beyond the numbers and explore the possibilities that come with age and experience.
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