Thinking clearly about what retirement really means.
Upon hearing that our firm has joined and become the Kentucky presence of Mercer Advisors, the first question I get is whether that means I am retiring. My answer has always been, and remains, a qualified “no.” I’ve never had a retirement goal in mind, so I qualify my answer by saying, “you will know, before I do, when it’s time to take away my passwords. Forget about the car keys.”
Like some of you, one of my investment heroes has been Warren Buffett, the Sage of Omaha. At the age of 95, Buffett has decided to retire from Berkshire Hathaway, the firm that he has led for 60 years. Some critics have suggested that he stayed on too long; others fret that the company will lose its edge, despite its long history of success. The company has wisely provided a long runway for his retirement. He’s staying on until the end of the year, and the board named Gregory Abel to replace him on January 1, 2026.
I may not make it to age 95, but I have no plans for retirement just yet.
Rightfully, each of our clients’ financial plans has an assumption for a partial and/or full retirement date focused on the replacement of income earned by working with distributions from retirement accounts and social security. We are, after all, financial planners. In that practice, we have developed sophisticated optimization strategies for tax management of withdrawals, Roth conversions, downsizing or changing residences, and other measures to help make retirement more affordable and more enjoyable.
Before addressing the financial aspect of retirement, I once asked prospective clients what retirement meant to them. I have heard many admirable answers to that question, usually centered around gaining more control over time to travel more, play more golf, or take up or expand a hobby. I hear that in statements such as “I simply want to cut
“What, in your work, provides fulfillment?” I dare say, that it is more than simply having a job, or earning a paycheck.” — Scott Neal
back on the number of office hours worked each week. I’ll work until I can’t any longer.” Others say, “I just want to eliminate being on-call or making hospital rounds.”
A few years ago, I realized that may be the wrong question for starting the conversation about retirement. So, I am asking you now, before your next conversation with your financial advisor, to consider what, in your work, provides fulfillment. I dare say that it is more than simply having a job or earning a paycheck.
Back to my own example. I get a charge out of seeing other people identify a goal; and then develop, implement, and work on tasks that will move them closer to achieving that goal. Recognizing that plans rarely work out exactly as they were imagined, I learned that helping others deal with the pain of loss, whether a financial setback, unexpected health crisis, or even a premature death, led me to education as a chaplain and to practice what I learned when the situation calls for it.
A Couple of Examples
- When my dad retired at 62, after a 40-year career as a long-distance trucker, he quickly discovered that there was only so much home improvement and gardening that could be done. Perhaps more importantly, he also recognized that he had lost the connections that he had made up and down the road from
Cleveland to Miami. Mother was still working, and they lived rather modestly. So, he picked up golf, got together with one of his childhood buddies that had also retired, and together they played golf for as long as they were able.
After Dad’s death, my mother, my brother, and I were going through his personal effects. He had what appeared to be every imaginable club in his bag. But a very meaningful discovery was the large drawer full of his scorecards for what must have been every round of golf he had ever played. My brother thumbed through the cards. Some had frowns drawn on them; but most, later in dad’s life, bore smiley faces. He had progressively improved his game, had two certified holes-in-one, and had a very close friend when he died at age 85. - Years ago, upon my probing about her retirement, a client told me about her brother who was a surgeon practicing in California. He had practiced medicine for over 40 years and a month after retirement told his family he was going for a drive. He drove his Mercedes out into the desert, pulled out a pistol and shot himself. He left a note that simply said, “Last month I was Dr. , today I am nobody.”
Which would you call successful retirement? Thinking about what truly brings you fulfillment during your working years, and finding an outlet for those things that you will be giving up, is perhaps as vital as making sure that you have enough saved to spend ’til the end, leave a legacy, and to take care of those you leave behind.
To Do’s
- If you find it difficult to even think about life without work, determine ahead of time whether you can ease into retirement by working part-time, allowing you to stay connected to your profession and colleagues while you enjoy additional freedom.
- Consider pursuing activities you once loved as a child or teenager. I have retired friends, she is a doctor, and he is a professor, that, for the first time in their lives, are taking dance lessons. Still another collects and restores cars and then sells them—at least some get sold.
- Volunteer for causes that spark your interest. There are plenty of not-for-profit organizations that can use help.
- Join a travel group. You don’t have to go far to enjoy a change of scenery, meet some new people, and/or learn something new.
- Simply learn what it means for you to relax and how to do it. Let’s face it, you have likely had a very active career, full of stimulation.
Whether you plan to work to 95 like Warren Buffet, or you face retirement much earlier, it is critical that you develop a plan for how to deal with the inevitable changes that come after you have seen your last patient.