The narrative of the impending “silver tsunami” of advisor retirements has always fascinated me. In fact, I positioned myself to be at the forefront of helping these professionals transition smoothly into their next chapters in life. What I didn’t anticipate was the sheer resistance to retirement itself – a concept so fundamental to our industry, yet ironically overlooked by its practitioners.
Our profession is built on guiding clients through the complexities of retirement planning, ensuring they are financially and emotionally prepared for this significant life transition. Yet, when it comes to applying these principles to ourselves, there seems to be a disconnect. The most meticulous financial and operational succession plans often falter at the psychological hurdle. Despite the critical importance, there is a lack of education and support in addressing the emotional aspects of retiring from a life built around sharing financial advice.
For those approaching this pivotal moment, here are some critical pieces of advice to help ensure your transition is as successful personally as it has been professionally.
Declare your intent to retire early: In an ideal world, you should declare your intention to retire two years ahead of the transition, and the transition itself should last no longer than 10 years. Make that declaration clear to your successor(s) and clients so they can hold you accountable. We’re seeing breakaways from breakaways due to failed succession plans – don’t let this happen to your firm.
We’re seeing breakaways from breakaways due to failed succession plans.
Involve your spouse in the process: Retirement is a personal transition as well as a professional one. It’s important to understand how you plan to spend time together in your post-career lives – and your spouse will definitely have an opinion on it. Setting realistic and sustainable goals for together time, as well as alone time, is a great way to avoid misunderstandings and crossed signals. Remember, gray divorce is a real thing, and having these conversations early can prevent costly personal upheaval later on.
Take time before committing: Don’t commit to anything significant in your first six months of retirement. You will get lots of unsolicited advice about what you “should” do. All these “shoulds” can add up to stress. What you do is your decision. If serving on boards isn’t for you, don’t feel pressured. Try things, new and old: writing, woodworking, watercolors or that old banjo in the crawl space – and don’t feel you have to succeed in these endeavors. Just take some time to reconnect with what truly interests you.
Prepare for your next chapter: Assuming you’re not ready to say good-bye to the work world, take time prior to your retirement date to review your resume, draft a cover letter, update your LinkedIn profile and reconnect with former colleagues.
Consider hiring an executive coach and practice interviewing. Fully prepare yourself for your next career opportunity, which might be something completely outside of the financial services industry.
The concerns of retiring advisors are highly relatable.
They fear they’ll lose their sense of purpose and identity. They worry they won’t have enough to do, that being “underfoot” at home could lead to anxious family dynamics. Phrases I’ve heard from advisors preparing to retire include, “There’s only so much golf I can play,” “I don’t want to be a burden on my wife and grown children” and “I’m nervous about my income.” These sentiments reveal the personal struggles many face as they consider stepping away from careers that have long defined them.
One advisor I know was so entrenched in his daily routine that, despite retiring on a Friday, he was back in the office on Monday morning.
One advisor was so entrenched in his daily routine that, despite retiring on a Friday, he was back in the office on Monday morning.
Clearly, advisors need support to craft a post-career life that provides structure and meaning. It’s not just about leaving the office, it’s about ensuring the life you build in retirement is as fulfilling and rewarding as the one you led during your career.
Take these steps seriously, plan thoughtfully and approach your retirement with the same dedication you’ve given to your clients over the years. After all, a well-planned retirement isn’t just good for business – it’s good for you.
Casey Jorgensen is the Head of the Dynasty Institute for Adaptive Leadership at Dynasty Financial Partners.
