Retirement is often associated with aging and the end of your working years, but it doesn’t have to be viewed in such a narrow way. In fact, with a little mindset shift and by answering three key questions, you can rethink what retirement means for you—and take control of the next chapter of your life.
Rebranding Retirement as Life2
Traditionally, retirement is something we don’t look forward to or discuss openly. But what if we rebranded retirement as “Life2”? Life1 is when we’re in our working years—studying, earning, and planning for the future. Life2 is when you get to enjoy the fruits of your labor, living life on your terms. It’s a time to focus on your passions and goals, rather than simply your job. This concept of “Life2” was introduced by retirement expert Don Ezra, and it reframes retirement as a rewarding new phase of life.
Shifting your mindset from “retirement” to “Life2” opens up a world of possibilities. It’s about setting meaningful goals that align with your financial objectives and living a life that’s truly fulfilling. To help you get there, start by answering three important questions that can help you clarify your priorities. These questions are simple, yet powerful enough to change the way you think about your future.
The Three Key Questions
Ready to dive in? Here are the three questions you should ask yourself:
- If you won the lottery and received £10 million, what’s the first thing you’d spend it on? This might sound like a fun, hypothetical question, but it can reveal a lot about your true desires. The answers could be varied and exciting. For example, when I asked myself this question, my immediate thoughts were to pay off my mortgage, buy a new car, renovate my garden, and donate to charity. These answers give me insight into what would bring me joy and financial freedom in Life2.
- If you had just 5 to 10 years left to live, how would you change your life? Now we’re getting to the heart of what truly matters. For me, the first thing that came to mind was to travel more extensively. There’s so much of the world I still want to experience. I also realized that I want to spend more quality time with my family, something I often neglect due to work commitments. This reflection helped me pinpoint what really matters for the next phase of life.
- If you had only 24 hours left to live, what would you regret not doing? This is the toughest of the three, but it’s incredibly valuable. For me, the biggest regret would be not having children. I would be leaving the world without leaving a legacy, which feels incomplete. This question forces you to think about what you value most and what might be missing from your life.
What I Learned From These Questions
After reflecting on these questions, I gained clarity about what I want to achieve in Life2. I realized that I want to be mortgage-free as soon as possible and that I’d like to use the next phase of my life to travel extensively. Additionally, I’ve started thinking more seriously about having children, something I hadn’t fully considered before. These insights were eye-opening and helped me create a clearer vision for my future.
The Strategy to Achieve Your Goals
Once you’ve answered these questions, you’ll have a better understanding of your true goals. From there, you can start shaping your financial strategy around them. You might find it helpful to categorize your goals into three areas:
- Capital Expenditures – This includes things like paying off your mortgage, buying a car, or renovating your home.
- Time – This category is about how you want to spend your time, such as traveling or spending more time with family.
- Legacy – This includes things you want to leave behind, like children, charitable donations, or other forms of giving back.
For example, knowing that travel and family time are high priorities can help you determine how much income you’ll need from investments. Once you’ve accounted for these financial needs, any remaining funds could be directed toward your legacy, whether that’s providing for your children or charitable causes.
Turning Dreams Into Reality
You may be thinking, “This all sounds great, but is it realistic?” It’s true that some of these goals might seem far-reaching, and that’s where a solid financial plan comes in. Working with a skilled financial planner can help you make sense of these aspirations and put them on a clear timeline. Using tools like cashflow modeling, a planner can show you exactly how much you’ll need to support your goals and make your dream retirement a reality.
It may even turn out that your ideal version of retirement isn’t achievable right now. If that’s the case, a good financial planner will help you adjust your spending habits or restructure your assets to make it happen. If necessary, you can remove certain goals to see how that impacts your financial situation, helping you prioritize what matters most.
Rethinking Retirement Planning
Retirement planning often carries negative connotations. The media often portrays retirement as a quiet time of reading books and relaxing, but for most, it’s about creating a meaningful, fulfilling life. Planning for Life2 should be an exciting and creative process, not something to dread. By starting early and setting clear goals, you can avoid the pitfall of underfunded pensions and create a secure, enjoyable retirement.
The earlier you begin planning, the easier it will be to take the steps necessary to reach your ideal retirement. If you engage in the process now, you may even find that you can enter Life2 sooner than you expected.
Challenge Yourself to Rethink Retirement
Stop putting off the hard questions and take the time to think about what you really want from your future. By answering these three key questions, you can create a plan that’s motivating and meaningful. The answers might surprise you, but they’ll help you design the retirement you truly deserve.
