When it comes to retirement planning, advisers do a lot of good work helping clients get their finances in order. They look at pensions, investments, tax wrappers and the like.
But as sabbatical coach, Lyndall Farley, suggested in our recent conversation on the Money:Mindshift podcast, there’s a psychological side to retirement planning that often goes unnoticed.
The psychological side of retirement
It might be easy to think that once the money is sorted, the job is done. After all, advisers spend years helping clients build their pension pots, calculate their retirement income and ensure their investments align with their goals.
Yet time and again, I’ve heard of advisers who see their clients reach retirement with a healthy nest egg but struggle with what comes next. Struggle with how to spend the money they’ve spent their lives saving, and how to navigate the emotional shift from full-time work to a new, often unstructured, life phase.
There is something deeply unsettling for many people in moving from a life of saving to a life of spending. For many clients, spending money might feel unnatural. They’ve spent decades building financial security, and then they’re asked to reverse the flow. To draw down, to spend, to enjoy the wealth they have accumulated. But have they been prepared for that?
A sabbatical as a bridge to meaningful spending
This is where sabbaticals could be so valuable. A sabbatical could be a brilliant way for clients to practice spending meaningfully, in line with their values and what brings them happiness.
As Lyndall explained on the Money:Mindshift podcast, a sabbatical is ‘really an intentional break for rest and recharge and pursuing other interests’. It’s not just about taking time off, it’s about learning how to invest in oneself – about living a life rich in experiences and purpose.
For clients in their forties, fifties or even sixties, a sabbatical could be a crucial opportunity to test drive the idea of spending more time on things that matter most to them: family, health, hobbies, travel or simply resting and reflecting on life’s next chapter.
Lyndall pointed out that ‘if they take a break now, they have lived their life while they are in their prime with their kids, experiencing all that is to live for in this chapter’.
By helping clients plan for a sabbatical earlier in life, advisers can support clients in developing a mindset that aligns money with happiness later down the line. That means, when full retirement eventually arrives, clients are better prepared to spend their money in ways that bring them real joy.
Similarly, you might want to check our article on why health advice belongs in every financial adviser's toolkit, too.
Bringing sabbaticals into client reviews
Advisers are in a unique position to raise this subject. During annual review meetings, why not invite clients to reflect on their financial wellbeing goals over the next 18 months? That might be taking a sabbatical, or it could be another project that allows them to step back and think deeply about what retirement will mean for them.
Lyndall’s advice to individuals rings just as true for our clients: ‘Start with why. Always start with why. Why do you need this break? What would be so important about it for you?’
By introducing this line of questioning, advisers are not just ticking a box. They’re helping clients plan for the psychological side of retirement. Encouraging them to think beyond the numbers and consider what a fulfilling, purpose-driven life looks like to them.
A sabbatical might involve travel, volunteering, learning a new skill or spending quality time with family. It might be a chance to tick off a bucket list item or to simply rest and recharge after years of hard work. By weaving this into the conversation, advisers show clients that their financial wellbeing matters just as much as their balance sheet.
The Money:Mindshift podcast
Tune into our podcast where author, financial wellbeing pro and host, Dr. Tom, chats with experts about shifting your financial perspective.
The practical side of sabbaticals
Of course, sabbaticals have a practical side, too. Lyndall spoke about what she calls the ‘three dials’: time, money and activities. ‘If you dial up the amount of time you’re going to be on sabbatical, you have to dial up your available money,’ she explained. ‘If you dial up the number of activities or the expense of those activities, that has an implication on the budget.’
Helping clients understand how to balance these dials is where advisers can add real value. For some, a short but meaningful break might be just the thing. For others, a longer sabbatical could be a more transformative experience. Either way, advisers can work with them to ensure the financial plan supports the lifestyle they want to achieve.
A different kind of money mindshift
Ultimately, encouraging clients to plan sabbaticals is a money mindshift in itself. It’s about shifting the conversation from simply accumulating wealth, to spending it intentionally and in alignment with what matters most.
It’s about helping clients see that financial security is not just a number on a page, but a tool to build the life they really want.
By raising the idea of sabbaticals and other meaningful breaks, advisers could help clients develop the mindset, confidence and experience they need to transition smoothly into retirement.
This isn’t just about learning to spend money. It’s about learning to spend it in ways that bring lasting satisfaction and purpose.