Is 2025 the Year of Retirement, and Are You Ready?

OnTalent Team

Person entering reitrement

As we cruise into 2025, many individuals are contemplating or preparing for retirement. But what does it really mean to be “ready” for retirement? Research suggests that retirement is not just a static transition, but a complex process influenced by prior psychological resources and gendered experiences. It’s not always the blissful phase we imagine.

For many, the shift from a full-time job to having no specific obligations can initially seem exciting, yet it can quickly feel empty or unfulfilling. The structured nature of working full-time gives way to long, unstructured days, which some retirees find difficult to navigate. In fact, after years of a routine, many report feelings of boredom or a lack of productivity.

Interestingly, men are often more optimistic about entering retirement, but they may later face depression or a sense of loss. On the other hand, women generally experience more anxiety leading up to retirement but may adapt better once they’ve transitioned.

Retirement can trigger both excitement and anxiety. Whether you’re nearing retirement or have already taken the leap, there’s one factor that can contribute significantly to a fulfilling post-career life: a sense of purpose. This belief in our own worth and relevance plays a crucial role in our happiness and well-being, especially as we age.

Deborah Wilson, Head of Strategy and Performance at OnTalent, ponders this very subject and shares her perspective,

 
“Retirement—the word itself feels misplaced. It implies a closing chapter, a retreat from life, when in reality, it’s another pivot, a transition from one phase to another. We are not retiring from living; we’re simply stepping away from the structure of a full-time role. As I approach this milestone and think further about it, rather than feeling closer to an ending, it feels like the horizon keeps shifting, drawing me toward questions of purpose. What will I do to fill my days? What do I want to do to fill my days? How will I continue to contribute meaningfully? These are the thoughts that linger, shaping what this next phase might look like.”

Building Your Psychological Portfolio

The concept of a “psychological portfolio” can help us understand how to prepare for retirement in a more meaningful way. Just as financial advisors recommend diversifying your financial portfolio with stocks, bonds, and cash, it’s important to diversify your psychological assets. Key areas to focus on include identity, relationships, and purpose.

A strong sense of purpose has been shown to increase resilience, enhance longevity, and improve overall well-being. Studies have found that having a purpose in life can reduce mortality risk, particularly in relation to cardiovascular health. People with a clear sense of meaning in their lives are more likely to engage in preventative health behaviours, like staying active and scheduling regular medical screenings.

This connection between purpose and health is not just theoretical. The Okinawans, known for their long life expectancy, have a strong cultural emphasis on ikigai, which means “a life worth living.” For many elderly Okinawans, their purpose comes from responsibilities like caring for grandchildren, volunteering, or maintaining community spaces.

Purpose doesn’t have to come from grand gestures, though. It can also be found in everyday moments—appreciating the warmth of sunlight, enjoying a cup of coffee, or watching a pet play. By focusing on what you’re grateful for, you can foster a deeper sense of meaning in your daily life.

Assessing Your Retirement Identity

Retirement is a time to reflect on your identity. Ask yourself: Do you feel valued by others? Do you have a strong sense of self-worth? These reflections are crucial to understanding how you’ll navigate life after work.

One challenge retirees face is loneliness. Studies have shown that loneliness can be as harmful as smoking 15 cigarettes a day, with a 50% increase in the risk of premature death. As we grow older, our social networks often shrink, and the loss of the workplace relationships we once had can leave us feeling isolated. Actively building and nurturing strong social connections during retirement is essential for maintaining emotional well-being.

Based on interviews with over 150 retirees, researcher Nancy Schlossberg identified six distinct ways people approach retirement. These pathways provide insights into how we might adapt to retirement:

  1. Continuer: These retirees continue to engage in activities similar to what they did during their careers but modify them to suit their new lifestyle.
  2. Adventurer: They see retirement as an opportunity to make bold changes or start something completely new.
  3. Searcher: Searchers actively explore different interests and engage in new activities, often volunteering or trying out various roles.
  4. Easy Glider: These retirees prefer a laid-back lifestyle, enjoying unscheduled time without a clear agenda.
  5. Involved Spectator: Retirees in this category continue to care about their field, attending events or staying informed, but they are no longer directly involved.
  6. Retreater: These individuals disengage from the hustle of life. Some may withdraw entirely, while others take time to figure out their next steps.

It’s important to note that many retirees combine different paths over time, and it’s natural for your approach to evolve as you move through different stages of retirement.

Tips for a Fulfilling Retirement

Preparation is key to a fulfilling retirement. Here are some strategies to help you plan:

  1. Plan for Varied Activities: Ensure you have a range of activities to keep you engaged and entertained.
  2. Budget for One Year’s Expenditures: Get a clear sense of your financial needs and create a realistic budget.
  3. Be Open to New Experiences: Stay flexible and open to trying new activities or hobbies to avoid boredom.
  4. Create a Time Management Plan: Know how you want to spend your days. Having a sense of purpose can keep you motivated.
  5. Focus on Relationships: Cultivate and maintain social connections with family, friends, and others in your community.

Retirement can be a time of personal growth, deepened relationships, and exploration. By preparing psychologically as well as financially, you can ensure that 2025 is the year you embrace a fulfilling and meaningful retirement.

“For me, phasing into retirement feels like the right path. Reducing workdays or moving to part-time is an ideal way to ease into this shift—a gradual letting go, rather than an abrupt plunge. I’m also acutely aware that, as the oldest person in my office, my colleagues are observing how and when I might navigate this transition. Perhaps they’re waiting to see what lessons I’ll offer from my choices. And to them, I’d say: let me figure it out as I go. Retirement isn’t a one-size-fits-all journey; it’s personal, evolving, and, most importantly, I believe will be full of possibilities.”

Deborah Wilson


If 2025 is the year you plan to retire it is vital you are prepared. Indeed it’s just as valuable as training and development you’ve done all your life – now it’s time to invest in yourself to ensure lifelong satisfaction.

Download our Retirement Readiness Activity 

Ready to begin your journey? Contact OnTalent today and create a plan just for you, to ensure a fulfilling and purpose-driven retirement.

Retirement resources:
Books and Guides

Retirement Made Simple” by Noel Whittaker

  • A practical guide to managing your finances and planning your life after retirement in Australia.

“The Retirement Plan” by Michael and Kate McAlpine

  • Focuses on creating a holistic plan for retirement that incorporates financial planning, personal goals, and social connections.

“How to Retire in Australia” by Bernard Salt

  • A detailed look at retirement in Australia, covering housing, superannuation, health, and lifestyle.

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