Retirement beyond the numbers

[SPONSORED CONTENT]

Retirement is more than a financial milestone; it’s an emotional journey — a second adolescence of sorts. With almost one in five people in England aged 65 and over, ¹ there are now more older people in the UK than teenagers.² However, like teenagers, people approaching retirement can often face a period of self-discovery questioning: who am I now, and what do I want the rest of my life to look like?

Who am I without the job?

For many, their careers weave identity, routine and friendships tightly around a job title. The daily structure, goals and social contacts that work provides all feed wellbeing; lose the role and some people feel like they’ve lost a bit of themselves.³  Social connections are not a nice-to-have, they’re central to quality of life in retirement. The British Psychological Society is blunt “those experiencing social isolation and loneliness have a 50% higher risk of premature death.”⁴  

The saver-to-spender leap 

One of the big emotional transformations people make in retirement is the jump from saving to spending. Half of people aged over 55 are worried their retirement savings won’t last their lifetime,⁵ and that fear can overshadow the more optimistic possibilities of life after work. Without clarity, people split into two risky camps — underspending through fear of running out or overspending and depleting resources too early. Confidence, the kind that comes from a clear, complete picture of savings and choices, is what helps people switch from hoarding to enjoying.

Beyond the spreadsheet 

Planning matters for wellbeing, not just for wallets. For those with financial concerns, 79% reported that this affects their mental wellbeing.⁶ People who take the time to plan for retirement are more likely to report higher levels of wellbeing after they retired.⁷ Yet too few people are making any kind of retirement plan, financial or otherwise, only 29% of 55–59 year-olds report having a clear plan for retirement, and an alarming 17%⁸ are unaware they need to make any choices. 

Different stages. Different mindsets

Retirement is rarely a single, unchanging chapter. It typically unfolds in three broad stages:

• The early retirement years are when people are most active and likely to spend on travel and big experiences. 
• The mid-retirement stage often sees people slow down, spending more locally and less on big trips. 
• The final stage of retirement comes when physical ability diminishes, and income may be needed for care and health needs. 

Each stage needs a different mindset. Recognising these different phases helps people set realistic expectations and adapt plans over time. 

Encouraging engagement 

If retirement is as much about identity and relationships as it is about money, how do we get people to engage early and properly? Retirement planning that starts with purpose helps people picture the life they want before they consider products. Mercer’s Destination Retirement planner, developed by Hub Financial Solutions and available on the Mercer Money app, encourages people to reflect on how they’ll spend their time, what matters most and where their attention will be — not on tax, product choices or risk jargon. Looking at the full picture, with simple planning tools, helps people manage the emotional shift into life after work and build the confidence to make practical financial choices later.

“Retirement is an opportunity to rediscover who you are” explains Alan Nelson, UK DC Product Leader, Mercer.  “Start with the life you want, then work backwards to the money. That’s why planning tools need to be holistic. Our Destination Retirement starts by taking individuals through the most important areas to consider, thinking about the future they would like, how to support themselves financially, and creating a personal retirement plan that sets out the feasibility of their plans and aspirations using the resources they have. The planner lets people change their inputs to see the impact on their plan, monitors income drawdown levels and investment performance, and supports people throughout life after work so plans can adapt if things change.” 

You cannot plan a route without a destination in mind.  It’s clear retirement planning must start with life, not just money. After all, surely as an industry our goal is to equip individuals with the knowledge and support, they need to actively engage in their future emotionally as well as financially? It’s something Mercer touches on in its report ‘Retirement support in 3 years’ time’. If we help people explore purpose, social connections and routine alongside pensions, we can help them enjoy retirement emotionally as well as financially.

To read more articles from Mercer visit the content hub on Corporate Adviser – here.

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^{1 Our Ageing Population | The State of Ageing 2025 | Centre for Ageing Better
2 Population size and mortality – AYPH – Youth Health Data
3 The Retirement Mindset Shift: From Clocking In to Kicking Back. – BritWealth
4 The Emotional Transition to Retirement: How to Prepare for Life Beyond Work
5 Half of people over 55 are worried about running out of money – Which?
6 Financial worries impact mental wellbeing for more than half of UK adults, finds Schroders Personal Wealth – IFA Magazine
7 The Emotional Transition to Retirement: How to Prepare for Life Beyond Work
8 Planning and Preparing for Later Life – GOV.UK}