Rethinking Retirement: Why Waiting Until 67 Might Not Be the Best Plan

Introduction Retirement has long been seen as the ultimate goal—a time to finally relax and enjoy life after decades of hard work. In the Netherlands, for example, the official retirement age is set at 67. However, this traditional view of retirement is increasingly being questioned, especially by younger generations. Why wait until you’re 67 to start enjoying life? After all, life is unpredictable, and not everyone even makes it to that milestone. In this blog, we’ll explore alternative ways to incorporate more leisure and fulfillment into your life today, without having to wait for retirement.

1. The Traditional Retirement Model: Is It Still Relevant? The conventional retirement model, where you work full-time for 40+ years and then suddenly stop, made sense in a time when people had shorter life expectancies and different work environments. However, with increasing life expectancies and a growing understanding of work-life balance, this model may no longer be the best fit. The idea of postponing all leisure, travel, and personal pursuits until retirement might not be the most fulfilling way to live. Additionally, by the time you reach 67, you may not have the same energy, health, or flexibility to fully enjoy the retirement you've worked so hard for.

2. Retirement works differently across the globe

• The Netherlands: People retire at 67 and get a state pension (AOW), money from workplace pensions, and can save privately.
• Germany: Similar to the Netherlands, with retirement at 67 and a strong focus on workplace pensions.
• United Kingdom: The retirement age is moving to 68. The state gives a basic pension, but most also rely on workplace and personal pensions.
• United States: Retirement depends on Social Security (starting as early as 62), employer savings plans like 401(k)s, and personal savings.
• Asia: In Japan, people retire at 65 but often keep working. In China, men retire at 60 and women at 55, but personal savings are very important. .

3. Why Waiting Might Not Be the Best Plan The assumption that you’ll be in good health and full of energy when you retire is risky. While some people do manage to remain active and healthy well into their 70s and beyond, the reality is that aging can bring unexpected challenges. Chronic illnesses, mobility issues, or even cognitive decline can limit your ability to enjoy the retirement you envisioned. Furthermore, life is unpredictable, and many people don’t even reach retirement age due to unforeseen circumstances. This uncertainty begs the question: Why wait to enjoy life?

4. Alternative Approaches to "Retirement" Instead of deferring all your dreams to your golden years, consider integrating some of that joy into your life now. Here are some alternative approaches to think about:

a. Taking Sabbaticals A sabbatical—a prolonged period of leave from work—can offer you the time and space to pursue personal interests, travel, or simply rest. Unlike a traditional vacation, a sabbatical is often longer and can provide a deeper sense of renewal. Some companies even offer sabbaticals as part of their benefits package, but even if yours doesn’t, you might be able to negotiate one. Taking a sabbatical every 5-10 years allows you to recharge and explore passions, helping to prevent burnout and maintain a healthy work-life balance.

b. Extended Time Off Every Year or Every Other Year Instead of taking a full year off, why not consider extended periods of leave more frequently? Taking a month or two off every year or every other year allows you to regularly step away from the daily grind and focus on yourself. This could be the perfect time to travel, dive into hobbies, or spend quality time with loved ones. By taking more frequent, shorter breaks, you can maintain a better balance between work and leisure, reducing the need to “escape” from your job entirely.

c. Working Part-Time If the thought of working full-time until 67 feels daunting, part-time work could be an ideal solution. By working fewer hours, you can free up time for other activities, whether it’s starting a side business, volunteering, or simply having more time for family and hobbies. While part-time work may require some financial adjustments, it offers a sustainable way to maintain a steady income while also enjoying a better quality of life now.

5. The Financial Side: Can You Afford It? One of the biggest concerns about taking time off or working part-time is the financial impact. However, with careful planning, these options can be more feasible than you might think. Here are a few tips:

• Budgeting: Start by tracking your current expenses and identifying areas where you can cut back. This will help you determine how much money you actually need to maintain your lifestyle.
• Saving: Build an emergency fund that can cover your expenses during periods of reduced income. Consider setting up a separate account specifically for your sabbatical or extended time off.
• Investing: Make sure you’re contributing to your retirement accounts, but also consider investments that could provide passive income, giving you more flexibility in your work schedule.
• Income Streams: Explore side gigs, freelance opportunities, or passive income sources that could supplement your income while you take time off or work part-time.

6. Embracing the Present: The Benefits of Living for Today The idea of living for today doesn’t mean being irresponsible or failing to plan for the future. Instead, it’s about finding a balance between work and life that allows you to enjoy the journey, not just the destination. Here are some benefits:

• Reduced Stress: By incorporating more leisure and downtime into your life now, you can reduce stress and prevent burnout, leading to better overall health.
• More Fulfillment: Pursuing hobbies, passions, and meaningful relationships while you’re still young can lead to a richer, more fulfilling life.
• Improved Work-Life Balance: By not putting all your eggs in the “retirement” basket, you create a more balanced approach to life, where work is just one part of the equation, not the whole.

7. Conclusion: Redefining Retirement It’s time to rethink what retirement means. Rather than a distant goal that you spend your entire working life chasing, consider how you can integrate elements of retirement into your life today. Whether it’s through sabbaticals, extended time off, or part-time work, there are many ways to start enjoying more of your life right now. Remember, life is unpredictable, and waiting until 67 might not be the best plan. By embracing alternative approaches, you can create a life that’s not only financially secure but also rich in experiences, joy, and fulfillment.