Nearing retirement? Why 'refirement' is a better philosophy
- Refirement reframes retirement as a shift toward purpose, not just a break from work.
- Purpose and identity can change after leaving the workforce, making intentional planning important.
- A refirement mindset considers how to use time, money and skills to support personal goals, family and broader impact.
Articles about retirement planning often assume the end goal is a carefree life of self-indulgence. Play a few rounds of golf. Enjoy dinner and drinks with friends. Wake up when you want, and call it a night when you please.
Nothing wrong with any of that, except that many retirees find a devil-may-care lifestyle without any sense of purpose leaves them adrift.
In their pre-retirement lives, they were productive, with careers that gave them goals to reach each day and tasks to accomplish. In retirement, they are directionless and bereft of any sense of a higher calling.
This potential scenario is why you should plan for something much more meaningful, often called "refirement."
What is refirement?
Refirement is the intentional redeployment of a person or family's time, talents and treasure in pursuit of a renewed purpose. Think of refirement as a bold, countercultural model that rejects the traditional retirement mindset of passive consumption and purposelessness. Instead of exiting life's stage, you step onto a new stage.
In the transition from work life to a traditional retirement, people can sometimes feel lost. Maybe not right away, because retirement might initially seem like an extended vacation. But eventually it's normal to ask, "Is this all there is?"
Research has shown that, for many people, work is more than a paycheck. A job is a key part of their identity and their purpose in life. And often, that's also how others see us.
Think about how often we associate a person with their job. Speaking of someone, we might say, "She is a cardiologist," "He is a CPA" or "That couple runs a bookstore."
In retirement, those career- and job-focused identities disappear, and when people aren't careful, so does the purpose that every life needs. This is where refirement changes the narrative.
Instead of retiring from something, you are refiring to something. It's the next chapter in the story, not the end of the book. Refirement is a reinvestment in a calling. It is a recommission to serve, lead and love with the same passion you had in earlier years, only through new platforms.
What might those platforms be? That's up to each individual.
Where your money goes in refirement
People aren't always thinking in those terms when they near retirement. They are more focused on what it will be like to escape work life and ease into a more laid-back lifestyle.
Retirement planning, to a large degree, centers on taking an inventory of income sources and savings and devising ways to get the most out of their money to fund that desired lifestyle.
Of course, refirement requires looking at finances as well, but with a different approach, one that allows for the fun and relaxation of a traditional retirement but encompasses much more.
One of the most practical and powerful ways to live out refirement is by reframing the way we steward our resources, especially our money, which can be divided into three distinct buckets:
Money for ME: This bucket is about enjoying the fruits of your labour free of guilt. It supports your lifestyle and freedom and funds the big-ticket dreams, such as travel, home renovations or the car you've always wanted.
This bucket exists to celebrate life, not escape from it.
Money for WE: This bucket is focused on generational impact. It's the intentional investment of capital, and character, into your children and grandchildren. Through thoughtful giving, rewarding and incentivizing, we transfer not just wealth but also wisdom.
This is one of the greatest antidotes to the common, often unwise, transfer of wealth that burdens more than it blesses.
Money for THEE: This capital fuels the causes that stir your heart and support the people you care about. This might be a church, a charity or a nonprofit organization doing work you admire.
When time, talent and treasure converge on mission-driven generosity, legacy becomes more than a word; it becomes a movement.
Ultimately, the goal isn't just to retire comfortably. You want to refire your life to make this final chapter the most meaningful period of all. Refirement enables you to finish strong, live fully and lead a life of joy, significance and impact.
This article was written by Hilton Lamprecht from Kiplinger and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
