After more than 25 years working with Australians approaching and living in retirement, there is one thing I know for certain: retirement rarely turns out exactly as planned. That shouldn’t really be a surprise because life rarely turns out exactly as planned.
That is not necessarily a bad thing.
In fact, some of the most fulfilled retirees I‘ve worked with are those who have been willing to adapt, change direction and occasionally throw the original plan out the window altogether.
When I first started working with retirees, the retirement conversation often followed a familiar script. You worked, you saved, you retired (maybe qualified for age pension) and hopefully had enough money to fund a comfortable life, whatever that looked like.
There might have been a caravan involved. Golf featured heavily. And there was usually a plan to be more involved with the grandchildren, getting fit or decluttering.
Today, retirement looks very different.
Australians are living longer, working differently and, importantly, expecting more from their retirement years. Recent research from the Australian Industry Group highlights the changing dynamics of Australia’s ageing workforce and the increasingly varied pathways people are taking into retirement. Retirement is becoming less of a single event and more of a transition.
And from my perspective, working directly with retirees over many years, it’s great to see the research reflects my experience.
Is there even a “typical” retiree?
It’s easy to think of retirees as a homogenous group of ageing people, similar to your grandparents perhaps. This couldn’t be further from the truth and because of the diversity of those heading into retirement, no retirement plan looks the same.
I’ve worked with clients who couldn’t wait to finish work and others who discovered, much to their surprise, that they missed the structure, stimulation and social connection that work provided.
Others have retired and then started consulting, without much time in between. Some have taken on board roles, become involved with younger people, volunteered or discovered that grandchildren can quickly become a very demanding (unpaid) part-time job.
Retirement doesn’t have to mean simply stopping. For many people, it can mean scaling back, trying something new or redefining what “work” means altogether.
The questions I ask clients are: “When would you like to retire?” and “What are you retiring to?”
The answers to these questions shape not only the technical aspects of the advice but also the conversations bringing that advice to life.
The biggest challenge is often giving clients permission to spend
One of the most interesting things I have observed in my career is that having enough money does not automatically give someone confidence to spend it.
I have worked with clients who are financially secure (and then some) but still hesitate to book the holiday, upgrade the car or spend money on experiences that matter to them. Every now and then I encourage them to sit in the pointy part of the plane.
Their concern is understandable, after all they’ve spent their lives earning and saving, and now they are flipping that by spending.
They are worried about living longer than expected, investment markets falling, inflation rising, helping their children financially or needing money for aged care later in life. Retirement can feel like a very long road when you are standing at the beginning of it.
But there is another risk that doesn’t always receive enough attention: having the financial capacity to enjoy retirement but being too afraid to do so.
Research into Australian retirement experiences reinforces this point. Retirement confidence and mindset can have a significant influence on spending behaviour, with some retirees becoming overly cautious about their future financial security.
As an adviser, one of the most rewarding conversations I can have with a client is helping them understand that they have choices.
Sometimes the most valuable advice is not telling someone to spend less.
It is giving them confidence that they can spend more.
Nobody wants to reach age 92 and discover they could have afforded that trip to see an old friend or made their home more enjoyable to live in.
Retirement advice needs to keep evolving because retirement isn’t static
What clients want at 60 may be very different from what they want at 70 or 80. Health changes. Family circumstances change. Spending changes. Sometimes clients change their minds, and they are entitled to do so.
Research shows that many retirees find it difficult to predict their spending over long periods, reinforcing the importance of regularly reviewing retirement strategies rather than treating them as a one-and-done plan.
Being involved and developing my skills in retirement planning, I believe good retirement advice has become less about producing the perfect answer and more about helping clients make good decisions as life unfolds. Let’s face it, there is never a perfect answer but rather a range of options to consider.
The numbers will always matter. But so will purpose, relationships, experiences and the confidence to enjoy the life those numbers are designed to support.
I believe the most important thing advisers need to remember is not telling our clients what retirement should look like but to help them build the confidence and financial freedom to decide that for themselves.
Sources
Australian Industry Group – How retirement dynamics are shifting with Australia’s ageing workforce
Four ways Australians navigate retirement, Institute for Lifetime Income, August 2026. Found here
https://www.challenger.com.au/about-us/Institute-for-Lifetime-Income
Anne Graham is Partner of Integrated Advice (Private Wealth) at Kearney Group.
