I came across a piece recently by Dan Haylett titled Your 12 Good Years. It's one of those articles you read once and keep thinking about. The idea is simple and uncomfortable in equal measure — and it has a direct bearing on how financial planning should actually work.
The alignment problem
At any point in your life, you're managing four things at once: your time, your money, your energy, and your health. The challenge isn't having enough of any one of them. It's having enough of all four at the same time.
The problem is these four things rarely peak together. They take turns. And that misalignment is something most long-term financial plans quietly ignore.
| Life Stage | What you have | What's missing | Window |
|---|---|---|---|
| 20s & early 30s | Energy Time | Money | Limited |
| 40s & 50s | Money Energy | Time | Constrained |
| Early 60s | Money Time Energy | Health (beginning to shift) | The window |
| Mid–late 60s+ | Money Time | Energy & Health | Narrowing |
That window in the early 60s — where money, time, energy, and health are all reasonably in place — is what Dan calls your "good years." And for many people, that window might be ten to fifteen years. Sometimes less. The exact timing varies, but the pattern holds more often than most people expect.
The years where things feel possible — physically, mentally, financially — are fewer than we tend to assume. And we usually only realise it after they've passed.
Meet FORO — the fear that makes it worse
There's a concept in retirement planning called FORO: the Fear Of Running Out. It's the anxiety that sits underneath almost every conversation about retirement spending — the deep, persistent worry that no matter how much has been saved, it might not be enough.
FORO is understandable. Outliving your money is a real risk, and it deserves to be taken seriously. But here's the part that rarely gets discussed: in many cases, FORO doesn't just cause people to be prudent. It causes them to be paralysed — to defer spending, avoid enjoyment, and accumulate far more caution than their actual financial position warrants.
The anxiety that keeps people from using what they've worked to build
FORO shows up differently for different people. But the effect is often the same: a reluctance to spend, enjoy, or live fully in the years when it would make the most difference. Here's what it looks like in practice.
FORO is not irrational. But left unexamined, it can cost people the very years they spent decades building toward.
Now put FORO alongside the 12 good years idea. The combination is the real problem. If your window of alignment is shorter than you think — and fear is causing you to wait for certainty that may never arrive — you can end up with a large, healthy portfolio and a clear memory of all the things you didn't do while you still could.
The question most plans don't ask
Most financial planning in Australia is structured around accumulation — building wealth, growing assets, maximising contributions. These things matter. But they are means, not ends. And the plan rarely asks the question that matters most:
"When can I retire?"
"When do I want the option to live differently — and what does that require?"
Living differently might mean working fewer days, not stopping entirely. It might mean an extended trip while you're still fit enough to enjoy it properly. It might mean being more present with children or grandchildren during years that go quickly. None of these things require waiting until 65. Some of them require not waiting.
This isn't an argument for spending everything now
It's worth being clear on this. The 12 good years idea — and thinking clearly about FORO — isn't a case for recklessness or for abandoning financial discipline. It isn't anti-saving or anti-investing. The future needs to be provided for. Longevity risk is real. Healthcare costs in later life can be significant.
Saving a great bottle for the right occasion is sensible. But if the right occasion never quite arrives — if the standard keeps moving, if the moment never feels quite special enough — you may find yourself looking at a cellar full of bottles you never opened, at a point when you've lost the taste for wine.
The point is balance. Securing the future is non-negotiable. But the present shouldn't be unnecessarily sacrificed for a version of the future that may look very different from what was imagined — or that may arrive later than the good years do.
Where good advice actually fits
Good financial advice isn't just about maximising wealth. It's about timing decisions well. Knowing when to push, when to ease off, when to use what has been built, and when to hold back. Understanding which risks are worth taking and which ones are just fear dressed up as prudence.
- Modelling the actual cost of living well now versus accumulating more — and showing what the difference looks like across a full retirement
- Stress-testing the plan against realistic longevity and healthcare scenarios, so decisions are made on evidence rather than anxiety
- Helping clients recognise when FORO is driving a decision rather than genuine financial risk
- Building a spending plan that gives permission to use what has been built — at the right time, in the right amounts
- Revisiting the question of "good years" explicitly, so the plan reflects a realistic view of when the window is open
At Diligent Financial Planning, financial freedom isn't a number on a spreadsheet. It's the ability to choose how you use your time — at the point when that choice matters most. Because that window doesn't stay open indefinitely. And waiting is almost always the default.
A question worth sitting with
If you knew with reasonable confidence that you had twelve good years ahead — where health, energy, time, and money all aligned — would you structure things the same way you are now?
Most people, when they sit with that question honestly, find that the answer is no.
The challenge is that we typically only work that out after those years have passed. Good planning is what closes that gap — before it becomes a regret.
If the 12 good years idea resonates, there's a companion piece worth reading. It explores the distinction between financial freedom and conventional retirement — and why treating retirement as the finish line can cause people to defer far more than they need to.
This article was inspired by Dan Haylett's piece Your 12 Good Years. The views expressed are those of Diligent Financial Planning and are intended as general commentary only.
This article is general information only and does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for you and seek personalised advice from a qualified financial adviser.
Chintan Engineer (AR No. 1006106) is an Authorised Representative of Diligent Financial Services Pty Ltd (AFSL No. 535390). Prepared on behalf of Diligent Financial Planning Pty Ltd (AR No. 1234150). This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process without the permission of Diligent Financial Planning.
