Written by Nick Freedman, Founder of Retire on Purpose.
Retirement 1.0 needs an upgrade
In so many areas of life we hear of transformation, disruption, growth mindset and evolution. It's hard to avoid this call for change in social media, technology upgrades and the news channels. And it's no different with retirement planning. The old model, which we'll call Retirement 1.0, was relatively simple. After your education finishes, you start employment, work hard for 40 years, then one day you retire. The picture was painted of a period of leisure and relaxation. Provided you saved enough money in your super, pension and investments everything will take care of itself. If an equation for Retirement 1.0 were to be created it, it might look something like this.
Enough money for retirement = happiness
Sadly, life is not that simple and the more we have come to understand the benefits of viewing life through a wider, holistic lens, we can see this singular economic viewpoint of retirement is lacking in depth. Whilst I'm not suggesting money is not needed for happiness, it's important that we first acknowledge it's only one of the elements which plays a part in creating an enjoyable retirement experience.
What is Retirement 2.0?
Retirement 2.0 suggests a more conscious approach. The primary difference is that your plan incorporates all the holistic elements which contribute towards a great retirement experience. Life is an interconnected web and so to plan for a great future, demands the first shift happens with your thinking.
After this, you can begin planning for Retirement 2.0, by making sure your future vision is a holistic one. Include finances in your goal setting process, but upgrade from the Enough money for retirement = happiness mindset. It's going to take more than cash to feel fulfilled in your next stage of life. And to do this, you'll need a framework to map out your holistic retirement goals.
On our flagship program My Game Plan , there are several bodies of work you'll get connected with. One of them is called Maslows hierarchy of needs. Abraham Maslow was a psychologist who explained that needs underpin all our human motivations and behaviour. A need is an essential must have and there are 5 different types that will affect your retirement experience.