When the dream retirement doesn’t go to plan
Retirement is often marketed as a permanent vacation, but for many, the reality involves a complex emotional and practical transition. And then, there are those situations when the plans are completely derailed.
In 2024-2025, 156,000 people retired, with an average age of 63.8 years [1]. Each of these people had hopes and dreams about retirement, but will those plans come to fruition?
Consider this…of those 156,000 people, most intended to retire at 65.6 years, so on average they finished work earlier than anticipated. While that might sound like good news to those of you on the cusp of retirement, consider this:
- 13 percent finished paid work earlier than planned due to sickness, injury or disability
- 6 percent found themselves retrenched or dismissed and were unable to find alternative employment
On the other hand, some people delay retirement past the date they’d planned to start this next phase of life. A Finder survey conducted late last year found almost one in five Australians either delayed retirement or re-entered the workforce in the past two years.
The majority of those had done so to ease cost of living pressures...that's 1.26 million Australians who kept working because they were worried they had insufficient retirement funds [2].
When retirement goes to plan, it can be an exciting new chapter of life. When it doesn’t, it can be challenging and stressful, particularly if there is still a mortgage in the mix.
Off the rails
Even with the ‘ideal’ retirement, the transition is rarely a straight line. The best laid plans and most meticulously funded bucket list can be derailed by life’s unpredictability. Here are the three primary disruptors that can turn a dream retirement into a period of stress.
1. The health curveball
The most common disruptor to a well-designed retirement is the gap between planned health and actual health. No one expects illness or disability, but as we age, it’s increasingly likely. The Australian Institute of Health and Welfare (AIHW) released data last year that indicates that health limitations are the primary reason for reduced life satisfaction among Australia’s retirees.
Mobility can become a huge issue with ageing. An unexpected diagnosis such as osteoarthritis or cardiovascular issues can suddenly make a planned hiking trip in the Dolomites or a move to a multi-story home impossible. Homes and gardens may need modifications, more time (and money) may be spent visiting medical professionals and pain can sometimes strip the joy from once-loved pastimes.
2. Caregiving
Another frequent health related plot twist can be caregiving. Retirement plans often focus on the individual, but many retirees find their time consumed by the unexpected role of being the caregiver for a spouse or an ageing parent. Although you or your parents may be eligible for government funded in-home support, the time between calling for an assessment and receiving funding can be well over a year.
Early retirement to care for an ill family member
Pam and her husband had carefully planned for their retirement. However, their plans were turned on their head by two events. The first was the Global Financial Crisis, which negatively impacted their investments. The second, the onset of chronic illness of a close family member who needs ongoing care.
Out of the workforce earlier than expected, Pam set about finding a way to refinance their mortgage - the regular repayments on a fixed retirement income were challenging.
3. Social connection
When retirement doesn’t go to plan, social connection is often the first victim. Chronic pain, health limitations or time spent caregiving can lead to a shrunken world, one where social engagement drops.
This can have a negative impact on mental health; there’s been a number of studies linking happiness and fulfillment in retirement to social connections, the most recent being from National Seniors Australia (NSA) [3]. The NSA research highlighted that happiness in retirement hinges on having a purpose to enjoy, staying well and social connection. It also noted the important role of financial security.
Take control of retirement
Life does not always go to plan and retirement is no exception! It’s important to remember that retirement is not a static destination and a detour from your original plan does not mean the journey is less valuable.
It is often said that money can’t buy happiness, but it certainly provides the scaffolding upon which a happy life is built. In retirement, financial stability serves two critical functions. The first is peace of mind; the knowledge that your basic needs are met can reduce the cognitive load of stress, allowing you to focus on relationships and those things which bring you joy. The second is control; when life throws a curveball, financial readiness transforms a potential crisis into a manageable task. It preserves your agency, your power to make your own choices rather than having them made for you by circumstances.
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1.https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release
2. https://www.finder.com.au/news/delay-or-ditch-retirement-2026
3. https://nationalseniors.com.au/news/media-release/new-research-reveals-what-makes-older-australians-happy