The worst piece of retirement advice you will receive
This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book as well as The Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 130 episodes of the Financial Wellbeing Podcast.
Conversations with friends in my 20s tended to revolve around the price of renting and what gigs to go to next. In my 30s, the dinner party chat turned to house prices and school catchment areas.
Now that I’m in my late 50s, there is one topic that crops up more than any other: retirement.
Pretty soon into such a conversation, someone will give what, in my view, is the worst piece of retirement advice you could receive.
To understand why, let’s look at what makes a great retirement.
Pulled, not pushed
Most people do not prepare for starting retirement. They prepare for stopping work.
This is true of other life transitions, such as selling a business or children leaving home. Life beyond that point of change is alien, something that doesn’t need to be considered until we get there. However, those transition points often involve a loss of identity, worries about money, losing being part of a team, or losing competency.
A great retirement is one that is prepared for and that one can look forward to. It is a lot easier to be pulled into retirement than it is to be pushed into it.
What the research tells us
The key to a joyful life is actually relatively simple (if not always easy to achieve!). A key component is the quality of our social relationships (according to a long-term study by Harvard University, 25 January 2026).
Retirement is often the moment when we stop going to work; we stop having a routine; we stop spending our day with work colleagues. It is when we lose that regular social contact.
Having something meaningful or purposeful in our lives is also key to wellbeing (Psychology Today, 27 July 2026). Retirement is a time when we stop doing the job that we have done for so long, whether that be bringing up children or forging a career.
Then there is the importance of being part of a community (Wellbeing: The Five Essential Elements by Tom Rath and Jim Harter, May 2010). This is key to wellbeing, yet retirement is a moment when we leave the community that we were part of, whether that be the place of work or the profession we were involved with.
And then there is the money to think about
Preparation for retirement needs to address all these issues. It also needs to consider the other major concern about retirement, that of money. Retirement is a moment when we stop filling up the wealth bucket. We turn off the taps, and we begin to draw out.
The financial plan is now going to be tested. All those assumptions that you made about what life you would want to lead, and how much you would need to put away to fund it, are going to become real.
So, what to do?
Like so many things in life, the answer is actually very simple: prepare.
It is a specific type of preparation that is needed, however. It is preparing for life after work, which includes social contact, something purposeful, and involvement in a community.
These are the core sources of wellbeing, and all three are in danger of being lost when we stop working.
However, as I mentioned above, most people do not prepare for life in retirement. They prepare to stop work. This is different.
The worst piece of advice about retirement
It is for this reason that the piece of advice about retirement I have heard most often is, for me, the worst piece of advice you could receive. It is this:
Do nothing for 12 months.
The theory goes that you should make no plans at all for life after stopping work. Relax, enjoy your new freedom, take a breath, and see what retirement brings you.
This is a perfect illustration of preparing to stop work, not preparing to start retirement.
Of course, a break is not entirely a bad idea. A plan for retirement that considers how to replace social contact, purpose, and community can also build in some breathing space. There will probably be a few bucket list things in there as well, perhaps some travel.
But to plan to do nothing for 12 months feels like leaving too much to chance.
A quality financial plan is one that provides a clear path to achieving your objectives. Spend some time with your financial planner discussing what those objectives might be and how they will allow you to prepare for a joyful life after work.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.