In the absence of retirement planning, one may revert to default choices or opportunities immediately presented, inevitably falling short of the fulfilling, engaged lifestyle they dreamed of designing. To thrive in this new life stage, planning is pivotal and setting aside the time and headspace well in advance will get you further on your way to the retirement you want.

A lack of retirement preparation can substantially hinder your financial security. Without a strategic plan, the inherent uncertainties surrounding financial decision-making (economic management, structure, and longevity risk) are amplified.

A sudden market decline just prior to, or in the early stages of retirement, can have significant and long-lasting consequences on the viability of your wealth over the course of your retirement. Additionally, persistent inflationary pressures can significantly erode purchasing power and, therefore, the ability to sustain a lifestyle with which you were once accustomed. Ill-considered structuring can also impact the tax effectiveness of hard-earned savings, particularly for executives who are subject to the highest rate of tax.

Financial risks aside, psychological and physiological risks are likewise high during this transitional life stage. While the idea of ‘slowing down’ sounds appealing, some executives who have built and led fast-paced, social and intellectually stimulating careers for decades will find an abrupt end to this standard unsettling, perhaps even distressing.

Delaying retirement planning can heighten anxiety about what lies ahead or keep you on the hamster wheel for longer than you would like in fear of not yet being financially secure enough to retire. There is no “right” age, stage, or milestone to start planning; however, research⁽¹⁾ suggests the process should start at least two years before expected retirement.

Whilst you may be working until your very last day on the job, without a plan, you are depriving yourself of the prospect to explore low-risk interactions and plant the seeds of new and valuable opportunities. Forward-thinking and preparing ahead is also pivotal from an emotional standpoint, to ensure the fear and uncertainty that can arise from the onset of retiring, is replaced with facts and knowledge.

One of the biggest challenges of retirement is detaching yourself from the corporate identity you have grown to embody as a full-time executive. Despite the reputation, awareness, and prestige of your role at the conclusion of your career, transitioning to this next life stage requires a reassessment across all areas. Whilst it is difficult and may seem self-deprecating, it is necessary to turn the page and start working on the new chapter of your life.

Cameron Harrison is in the business of mapping strategy. However long it may be or however many avenues travelled, it’s a journey where our expert Partners’ insights and experience are vital in helping our lifelong clients – from their ambitious beginnings, to the corner office and later to the 19^th hole.

Achieving success in your individual journey occurs not only through thoughtful planning, but also diligent and excellent execution of the details. Through our ‘plan for peace of mind’ process, we work together to identify your personal goals, needs and risks, prioritise your critical factors and devise a clear and actionable route-map towards achieving those goals. The plan of action can include consideration of investments, asset and liability review, superannuation, multigenerational considerations, tax, asset protection, and risk analysis.