At Felix, we’ve spent over 30 years helping clients find fulfillment and purpose in their post-corporate life. In that time, we’ve noticed a significant shift in how people view their post-career years, with a growing number embracing the concept of rewirement. But how can we effectively make this shift away from the age-old idea of retirement?
Here, we’ll explore the key differences between the two concepts, the importance of preparing for this new phase, the financial considerations required, how to adopt a rewirement mindset and more!
The difference between traditional retirement and rewirement
Traditional retirement has long been associated with a complete withdrawal from the workforce, often focusing on leisure and relaxation. Rewirement, on the other hand, represents a new phase of life that combines continued work, leisure, and personal growth. This modern approach allows individuals to maintain a sense of purpose, engagement, and financial security. Unlike traditional retirement, rewirement encourages people to explore new passions and opportunities, fostering a more fulfilling and purposeful life.
The societal and economic factors driving the rewirement movement
According to data from the U.S. Bureau of Labor Statistics, by 2030, the number of people 75 and older in the labor force is expected to grow by 96.5 percent. That’s a lot of people who have chosen to forgo traditional retirement and opt for staying engaged in “work” in some capacity. But why? There are several factors that have contributed to the rise of rewirement.
- Longer lifespans: Advances in healthcare have led to increased life expectancy, giving people more time to explore new interests and activities.
- Changing attitudes toward aging: Society is gradually shifting away from the notion that older adults should be solely focused on leisure. Instead, there is a growing recognition that people can remain active, engaged, and productive throughout their lives.
- Evolving economic conditions: The shift towards a gig economy and remote work, coupled with advancements in technology, has provided more flexibility and opportunities for older adults to continue working and earning income in non-traditional ways.
How rewirement emphasizes personal growth and fulfillment
Rewirement focuses on harnessing one’s passions, skills, and interests to create a fulfilling life. This shift toward personal growth allows individuals to continue evolving and contributing to society while maintaining financial stability. Rewirement provides an opportunity to explore new areas, engage in lifelong learning, and forge meaningful connections with others.
Preparing for Rewirement & Living the Portfolio Life
Assessing your passions, skills, and interests
To prepare for rewirement, take inventory of your passions, skills, and interests. Reflect on your experiences, identify new areas of interest, and consider how you can integrate these elements into your plan. This self-assessment is a must for designing a fulfilling and purposeful rewirement journey. Consider using tools like personality tests, career assessments, and skill inventories to help you gain a deeper understanding of your unique strengths and areas of interest.
Developing a rewirement plan and setting meaningful goals
Create a comprehensive plan that outlines your goals and aspirations. Consider how you can achieve a balanced “portfolio life” that combines work, leisure, learning, and volunteering. This approach allows you to maintain a sense of purpose, engagement, and financial security while enjoying the benefits of a well-rounded life.
When setting goals, focus on both short-term and long-term objectives. Break your long-term goals into smaller, manageable milestones to keep yourself motivated and on track. Don’t forget to regularly revisit and update your goals to ensure they remain aligned with your evolving interests and circumstances.
Building a support network for your rewirement journey
A strong support network is essential for a successful rewirement. Engage with friends, family, and professional advisors, such as an Executive Coach, to help you navigate this new phase of your life. Your support network can provide encouragement, guidance, and valuable resources as you embark on your rewirement journey. Consider joining clubs, organizations, or even online communities that share your interests and goals to expand your network and forge new connections.
Financial Aspects of Rewirement
The importance of financial planning for rewirement
Financial planning is crucial for a successful post-corporate life, which means you must ensure that you have a clear understanding of your financial needs, including living expenses, healthcare costs, and your desired lifestyle. Working with a financial advisor to develop a comprehensive plan that addresses your unique circumstances and long-term goals can help with this. As always, regularly revisit and adjust your financial plan to account for changes in your life and the economy.
Strategies for generating income during rewirement
If rewirement for you includes making continued income, then developing multiple income streams will help you maintain financial security at this new stage in your life. That could include considering part-time work, freelance projects, consulting, or starting a small business that aligns with your passions and unique skills.
Here are a few strategies for generating income:
- Leverage your expertise: Offer consulting or coaching services in your field of expertise.
- Pursue a passion project: Turn a hobby or interest into a profitable venture.
- Invest in income-generating assets: Consider investing in real estate, dividend-paying stocks, or peer-to-peer lending platforms.
- Teach, tutor or coach: Share your knowledge by teaching classes or offering private tutoring or coaching services.
Balancing financial security with personal growth and fulfillment
While financial security is essential, it’s equally important to prioritize personal growth and fulfillment. That means allocating time and resources to nurture your interests, learn new skills, and engage in meaningful activities. Ultimately, you want to strive to strike a balance between maintaining financial stability and investing in yourself and what drives your passions.
Embracing a Rewirement Mindset
Overcoming common fears and challenges associated with rewirement
Similar to retirement, fear of change, loss of identity, and social isolation are also common challenges faced during rewirement; after all, starting a new chapter in your life can be intimidating.
To overcome these challenges, try to:
- Embrace a growth mindset: View this time in your life as an opportunity for personal development and continued growth.
- Seek support: Reach out to experienced C-level career coaches and advisors who can further help provide guidance, encouragement and resources.
- Stay connected: Maintain relationships with friends, family, and colleagues while forging new connections through clubs, organizations, or volunteering.
Cultivating a growth mindset and embracing lifelong learning
Adopting a growth mindset is key to thriving during rewirement. That’s why it’s so helpful to pursue lifelong learning through formal education, workshops, or online courses to expand your knowledge and skills. Don’t be afraid to engage in activities that challenge you and push you out of your comfort zone. By continually learning and growing, you can maintain a sense of purpose and fulfillment throughout your rewirement journey.
Developing resilience and adaptability in the face of change
Resilience and adaptability are essential traits for navigating post-corporate life. All the tactics that served you well in your career still apply: embrace new challenges, learn from setbacks, and remain open to new experiences. Developing these skills will help you stay agile and responsive to the changes and opportunities that rewirement sometimes presents.
Rewirement Success Stories
Watch this inspiring Life panel from Felix’s HR Symposium series below to hear firsthand accounts of former executives Mara Swan, Mark Wattley and Elizabeth Wood, who have successfully transitioned their careers and embraced rewirement over retirement. Their stories showcase the transformative power of a purpose-driven life and serve as a testament to the endless possibilities that rewirement can offer.
Embrace the possibilities, and start living your best rewirement life today!
Rewirement is an empowering alternative to traditional retirement that emphasizes personal growth, fulfillment, and a purpose-driven journey. By understanding and preparing for it, developing a comprehensive plan, and embracing a growth mindset, you can create a vibrant and rewarding post-corporate life.
Ready to embark on your rewirement journey? Contact us today to learn how we can help you navigate this exciting phase of your life and continue to live to your full potential.