Hi Reader

Welcome to another bumper, jam packed edition of The Retirement Fix...

In this weeks edition im exploring...

• Paycheques & Playcheques
• Giving away your money and time
• Why retirement income isn't about products, it's about permission
• Why you should stop running from and focus on being pulled towards things

I think you're going to enjoy this one!

FEATURED ARTICLE

Paycheques & Playcheques: Why You Need Both in Retirement

Let’s be honest, the word paycheque used to mean something. It meant contribution. It meant validation. It meant that at least once a month, someone out there valued what you did enough to send you money for it.

Then retirement comes along, and suddenly that comforting “You’re still useful!” ping in your bank account disappears.

And what replaces it? A pension payment. Or a direct debit from your own savings. Which feels less like income and more like slowly eating yourself alive.

That’s where playcheques come in.

The Paycheque Problem

Retirement, for most of human history, wasn’t even a thing. We worked until we couldn’t. Our sense of usefulness, identity, and value came through work, through that paycheque feedback loop.

The modern retirement system broke that loop. Now, you’ve got income (hopefully), but often no sense of earning it.

Psychologically, that’s a killer. Because research shows that humans are wired to seek competence, autonomy, and relatedness, the three pillars of motivation according to Deci & Ryan’s Self-Determination Theory. When the paycheque stops, all three can take a hit.

You lose the competence (no one’s asking you to solve problems anymore), the autonomy (you suddenly have too much time and not enough purpose), and the relatedness (your colleagues vanish overnight).

So, the trick in retirement isn’t to stop getting paid... it’s to start redefining what you get paid for.

Enter the Playcheque

The playcheque is your return on joy. It’s the dividend paid by doing things that light you up, travel, hobbies, experiences, learning, volunteering, adventures.

It’s what makes retirement feel alive rather than slowly dissolving into beige afternoons of “what should we have for dinner?” conversations.

Psychologically, the playcheque keeps dopamine flowing. It fuels novelty, connection, and curiosity, the three things that research consistently links to longer, healthier lives. (And probably fewer hours watching Antiques Roadshow on a loop.)

The Perfect Balance

Here’s the real secret: retirement works best when you have both.

• Paycheques — purpose, contribution, validation. You might get these from part-time consulting, mentoring, teaching, or starting a project that still “pays” you — in money or meaning.
• Playcheques — fun, freedom, fulfilment. You “pay yourself” with time, experiences, and memories that make life rich beyond the financial.

When you have both, you get to feel useful and alive. You earn, and you enjoy. You contribute, and you celebrate.

Without both, retirement starts to wobble.

All paycheque and no play? You never really leave work.

All playcheque and no pay? You risk drifting into aimless leisure, the emptiest kind of freedom.

The Financial Side of Paycheques & Playcheques

Of course, this isn’t just philosophy... it’s finance too.

Because in retirement, you actually need both streams of income.

Your paycheque is the reliable stuff, the “keep the lights on” money. Think state pension, defined benefit income, annuities, rental income, or regular withdrawals you can count on month after month. It covers life’s non-negotiables: food, shelter, warmth, Netflix, and the occasional emergency boiler tantrum.

Then comes your playcheque... the freedom fund.
This is the extra £10k, £20k, £30k a year you intentionally set aside to spend on living richly: travel, dinners out, hobbies, bucket-list experiences, or simply saying yes more often.

Here’s the trick:
When you separate the two — in your mind and in your bank account — you give yourself permission to enjoy the playcheque guilt-free.
You’re not “spending down your savings.” You’re using the money exactly as planned.

The psychology is powerful: knowing your essentials are covered by steady paycheque income lets you use your playcheque money with freedom, not fear.

That’s the sweet spot, a retirement that’s both safe and exciting, structured and spontaneous, financially smart and emotionally rich.

How to Create Your Own Paycheques & Playcheques

Here are a few ways to think, plan, and act differently when it comes to your income in retirement — both emotionally and financially:

1. Redefine “work” — and what pays you.​
   Work doesn’t have to mean employment. It can mean contribution. Coaching a young professional, helping a charity, mentoring your old company’s rising stars, all are forms of paid purpose (even if the payment isn’t cash). But also, don’t be afraid to actually earn in retirement. A little part-time consulting, board work, or passion project income can provide a psychological lift and a steady paycheque that takes pressure off your investments.
2. Build your “Sleep-At-Night” Paycheque.​
   Make sure the essentials are covered by guaranteed or predictable income, things like the state pension, final-salary pensions, annuities, or systematic withdrawals that match your monthly costs.
   Your goal? To make your baseline living costs boringly certain. When the bills are handled automatically, you can focus on the fun.
3. Design your Playcheque... intentionally.​
   Don’t let fun be an accident. Create a Play Budget, a specific annual amount that funds the things that make you feel alive. £10k, £20k, £40k, whatever fits your plan and your personality.
   Set it up in a separate account. Label it “Play.” When it’s topped up each year, you know it’s there to be used, not hoarded. You can even automate monthly transfers from your investments or cash reserves to pay yourself your playcheque, just like a salary.
4. Blend the two — for purpose and pleasure.​
   The richest retirements mix both kinds of income and energy. The retired engineer teaching kids to code for a fee. The ex-marketing exec running creative workshops. The nurse running mindfulness retreats.
   These are the lives paid twice, once in purpose, once in pounds.
5. Use guardrails, not guilt.​
   Your paycheques cover the non-negotiables. Your playcheques flex with markets and life. Increase spending when times are good, dial it back if needed. That’s the difference between reckless and responsive.

The Serious Bit

When you only focus on financial capital in retirement, you starve your psychological capital. And that’s what truly powers a fulfilling second half of life.

Your money is a tool. But your days are the canvas. Make sure you’re painting with both paycheques and playcheques.

Challenge of the Week

Ask yourself:

If the answer feels lopsided, it’s time to rebalance the books.

RETIREMENT RESOURCE

Give Away Your Money and Your Time

This week’s worksheet is designed to help you think intentionally about who you want to give to, how much (or what form that gift might take), and when it could have the biggest impact. Because giving, whether it’s money, time, or energy, isn’t just about generosity; it’s about creating meaning and connection while you’re still here to enjoy it. Most people leave their greatest gifts too late. This exercise helps you plan them while you can still see the ripple effect they create. Download it, pour yourself a coffee, and take 10 minutes to sketch out your legacy, not as something you leave behind, but as something you live now.

Giving Away Money & Time Worksheet.pdf​

PODCAST

Ep 92 - Retirement Income Isn't About Products... It's About Permission

We’ve been told that the secret to a good retirement income lies in the products, the perfect pension, the clever withdrawal rate, the spreadsheet that makes it all add up. But here’s the truth: confidence to spend doesn’t come from products. It comes from permission. In this week’s episode, I explore why most retirees don’t need another financial product, they need emotional permission to actually enjoy the money they’ve worked for. We’ll unpack my Permission Pyramid, talk guardrails, freedom, and how to finally stop asking “Can I afford this?” and start asking “Does this fit the life I planned for?” Listen in now ​​​​

SKETCH OF THE WEEK

Stop Running... Start Being Pulled

Most people treat retirement like a fire drill, sprinting out of the building yelling “freedom!” only to realise they’ve no idea where the assembly point is. The truth? You can only run from something for so long before you trip over boredom. The real magic happens when you’re pulled towards something... towards curiosity, adventure, and the stuff that actually makes you grin on a Tuesday morning. So stop running… and let life start pulling.

IN OTHER NEWS

What I've Read This Week

• What Animals Can Teach Us About Aging - Freethink
• Has Big Tech Become Too Big? - Timeline
• Retirement Needs To Be Retired – So What Do You Do Instead? - Launch Yourself

Out & About

• I had the pleasure of delivering the opening keynote to over 500 financial professionals at The Openwork Partnerships 2025 Retirement Conference