Why purpose matters more than money in retirement

For ages, we've been sold this shiny idea that retirement is “work hard for 40 years, invest, and boom”, welcome to your reward of endless golf, beach chairs, and grandkid photos. Punch in, punch out, straight to margarita time. But honestly, that’s looking pretty outdated now, almost like a hoax. People live way longer, the economy’s a rollercoaster, and, well, it turns out people are not actually built for 30 years of pure leisure.

The big switch-up

Old-school retirement made sense when 65 was ancient and the average person lasted a couple more birthdays after collecting the gold watch. Fast forward, and many people are facing another 20, 30, or even 40 years after “retiring.” It’s a struggle to invest for three decades of leisure. And that’s just the money side. The real mess creeps up psychologically: you strip away the job, and a whole lot of people end up feeling lost, disconnected, maybe even depressed. Not great.

Honestly, the real danger for people who can afford to retire isn’t running out of money; it’s running out of meaning. I’ve seen it plenty of times with our clients over the last 25 years: they show up with healthy portfolios but blank stares. So, we must address not only the spreadsheets but the life plan. 

Don’t get me wrong, money matters, nobody’s saying go live on good vibes alone. But it’s just the launchpad. 

Financial planners or life architects?

So, financial planners are not just number crunchers anymore. We’re life coaches for smart grown-ups with realistic sets of minds. Financial planners are shifting towards “purpose planning,” which involves not only discussing issues like efficient tax planning but also exploring other aspects of their clients' lives. 

It’s not just what you're retiring FROM, but what you're retiring TO. It’s not about running FROM something; it’s about running TOWARD something.

These are some of the questions financial advisors need to ask their clients: 

• What job skills do you still love, and how could you remix those? Would you be prepared to mentor a minor startup or teach a workshop without a specific personal goal in mind? 
• Remember what you totally loved when you were twelve? You can actually pick that back up again. For instance, one of our retired clients is obsessed with landscaping. 
• Would you like to build a legacy? Community gigs and helping out family trump watching daytime TV.

These chats aren’t just touch-feely, they also significantly impact the retirement math. Someone launching a non-profit, or finally getting up the guts to open a coffee shop at 67? That requires a different spreadsheet than the one the guy convinced he’ll tour the world forever. Purpose shapes the plan, not the other way around.

Build a portfolio that makes you thrive 

Here’s where things go 3D. It’s not just Rands in the bank; you want a whole life portfolio, including:

1. Your Investment Portfolio. It’s a start and allows freedom.
2. Your Social Portfolio. You, family, friends, people to call when you’re bored or need a coffee.
3. Your Purpose Portfolio. The stuff you do for fun, or to grow, or to give back. Hobbies, projects, and personal growth programmes.

You need to have all three loaded before you ditch the 9-to-5. 

Smash the old retirement hoax

The myth of an endless vacation was always just that, a myth. We’re wired to want challenges, connection, and reasons to get going in the morning.

Right now? Purpose isn’t just nice to have, it’s the new currency of retirement. The most valuable financial advice isn’t just safeguarding your funds; it’s helping you design a life so good you actually love to live it. 

*De Klerk is a financial planner at Ultima Financial Planners.

**This is the first article in his series on Why Purpose Is the New Pension in Retirement. 

PERSONAL FINANCE