The myth of retirement is a con, don’t fall for it

The traditional image of retirement – clocking out for the last time, getting your gold watch, and heading straight for a deck chair – is more fantasy than reality.

Retirement isn’t what it used to be, and thankfully, it’s no longer about winding down and slowly declining. Modern retirements can span 20 to 30 years, and for today’s 50- and 60-somethings, they could be even longer, thanks to superannuation and longer life expectancies.

A modern retirement is about embracing a new phase where we don’t have to work for income (or work much unless we want to), we still have our health, and we seek relevance, purpose, and belonging. But does that fit the word “retirement” any more?

The idea of sitting on a beach sounds nice for a few days (or maybe a couple of weeks), but most people crave more than just doing nothing.Credit: Getty Images

Whether you’ve built up a solid superannuation balance or are still working on it, everyone can turn this phase into something that works for them. For some, it’s about securing enough passive income to feel financially free, then letting life unfold less actively. For most, it’s about getting their finances in order, then focusing on what’s next – finding purpose and building a new community.

Sure, the idea of sitting on a beach sounds nice for a few days (or maybe a couple of weeks), but after that? Most people crave more than just doing nothing. Modern retirement is about the freedom to pursue a second career, creative projects, or hobbies that didn’t fit into the work schedule.

This freedom comes from planning ahead – figuring out your finances early so that your choices align with your values and health. It’s about building a foundation that lets you live your best life, whatever that looks like.

And here’s the kicker: this new type of retirement is available to everyone, regardless of how much money you have. Yes, it’s tougher on a full pension, but whether you have ‘enough’ or ‘plenty,’ anyone can fall into the trap of being passive and waiting for a good retirement to come to them – but it doesn’t.

And financial freedom doesn’t automatically bring fulfilment. Even those with more than enough can struggle to find meaning and purpose in retirement.

So, if you’re craving retirement, acknowledge that the idyllic version is a myth. It’s a new phase that offers freedom, flexibility, and the chance to find joy and purpose – if you plan for it and act on your plans. With that in mind, here’s how you can make the most of this new chapter, proactively:

Recognise it really is a self-drive journey

Your retirement is yours to design, but that also means it’s up to you to drive it. After decades of having a workplace structure, social interactions, and external expectations moving you forward in life, it can feel challenging to figure out what your days will look like or even what you want to be doing.

No more to-do lists, no more casual chats at the coffee machine – just you, figuring out what’s next. This self-driven journey requires both self-reflection and action. You need to be prepared to drive yourself forward, often alone and persist when it gets tough. Focus on building a post-work life early and you won’t be alone forever.

Think about the transition

You don’t need to make a sudden jump into retirement (despite the stereotypes of doing so). In fact, easing into it gradually can help make the transition smoother and more fulfilling. You can start by reducing your hours, exploring part-time work, or simply giving yourself space to figure out what’s next and start some of those things before you retire.

This approach allows you to discover what truly brings you joy and build a new rhythm that feels purposeful, experimenting along the way. And do remember, the shift into retirement isn’t always seamless or easy. When work is no longer the main focus, it’s natural to feel a sense of loss or even wonder if you’ve become irrelevant. So take time out to reflect on what truly excites you, and consider taking on “bridging” activities or projects that provide short-term purpose as you create a longer-term vision for your post-retirement life and community.

Don’t be passive about your money

Financial security is the key to enjoying your retirement and the freedom to pursue what you love. Whether you’re in your 40s, 50s, or 60s, now’s the time to take charge of your finances. And it’s never too late.

Start by understanding where you stand today – take stock of your superannuation, savings, mortgage and any other debts. Then, take proactive steps to ensure you’re on track for an achievable goal. Get advice from your fund to help you. Maximise your super contributions, especially as you approach retirement, and make the most of tax incentives and government schemes that can boost your savings. But don’t stop there.

Think about creating passive income streams through investments or rental properties, so you can maintain your lifestyle without relying on active work. Focus on compound growth in your super, invest for the long term, and stay engaged with your budget to better understand how much you need to retire comfortably – or what adjustments you might need to make if your situation is more challenging.

Get your head around the age pension and superannuation

The Age Pension and superannuation systems are powerful tools that, when used together, can provide the financial stability you need in retirement.

If your super balance is on the lower side and retirement is approaching, it’s crucial to fully understand both systems and how they work together. By doing so, you can structure a retirement income plan that fits your needs – whether that’s modest or more comfortable.

Take the time to learn how the Age Pension works, how it integrates with your super, and how government support can complement your savings. More than 62 per cent of Australians over 67 receive the pension, so don’t hesitate to explore it as part of your plan. Just remember, they don’t backpay, so it’s important to apply early to ensure you get the full benefit.

Physical and mental health are the foundation of a fulfilling retirement.Credit: Mark Metcalfe

Focus on health and well-being

The No.1 concern of people two years after they retire isn’t money. It’s their health. Once they’ve got into the swing of an active retirement, they want to enjoy this period of life and fear their body not co-operating with them. Fact is, physical and mental health are the foundation of a fulfilling retirement.

But again you’re in the driving seat. Keeping active, maintaining a healthy diet, staying engaged mentally, and nurturing relationships will help you stay vibrant and focused.

Remember, in every step toward retirement, you’re in the driver’s seat—just don’t forget to put the car in gear and keep driving forward into the life you want.

Bec Wilson is author of the bestseller How to Have an Epic Retirement. She writes a weekly newsletter at epicretirement.net and is host of the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making financial decisions.

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