Retirement Planning Goes Beyond the Numbers

Choosing to leave a career is as much an emotional decision as a financial one. In fact, I would argue the financial side is the easiest to determine – it is completely objective. You either have enough in savings and income to meet your future financial goals or you do not, and all it takes is a little goal setting and math. This is the obvious side of what we do as financial planners.

8 Signs You’re Ready for Retirement or a Career Shift

1. Fulfillment: Can You Look Back with Pride?

Has your career been fulfilling? Have you met your professional goals? If not, what goals are left to attain—and are these unfilled goals something you desire to attain? If you have unfilled goals you want to achieve, there may be regret in making a change. But if you can walk away and say you’ve had a great career, you can probably check this box.

2. Freedom: Do You Have Time for the Things You Love?

You may find yourself in a career where you don’t have enough time to enjoy life’s simplest pleasures. As I’ve grown older, I place a much higher value on these moments. I wanted more time to focus on family, friends, and a hobby—in my case, golf (though my wife and I recently went fly fishing on the Snake River in Idaho and would have to say we are definitely “hooked!” — pun intended).  I’ve been around too many people who worked too long and either passed too early or had health issues that kept them from enjoying life. I decided this wasn’t going to be me—it was time to start living. I knew I would regret working too much and too long if I ended up being one of those people.

3. Motivation: Is the Fire Still Burning?

How much gas is left in your professional tank? Are you excited to get up and go to work? Do you absolutely love what you do? If not, you may be running low on motivation. Some people remain energized and passionate about work every day, and that’s great—but you don’t have to compare yourself to them.

4. Health: Are You Sacrificing Well-Being?

Is your career impacting your health through stress or lack of time to care for yourself physically? Stress, in particular, has an enormous effect on your overall well-being—from poor sleep to mental and physical symptoms. Sure, we can learn to manage stress and go to the gym, but that may just be masking deeper issues.

5. Friendships: Are Your Relationships Rooted Beyond Work?

This is one I hear a lot: “All of my friendships are at work—what happens when I retire?” It’s true, some acquaintances may fade, especially if they were rooted in daily professional interaction. But true friendships—those based on deeper commonalities—should endure. Make a point to stay in touch. If your social circle is mostly work-based, consider expanding it now so you’re not caught off guard later.

6. Plans: Do You Know What Comes Next?

A common obstacle: “What will I do all day?” It’s a fair question. If you fully stop working, you’ll have eight to ten hours to fill. Have a game plan—volunteer, travel, visit family. But don’t worry too much. I’ve had very few clients report boredom in retirement; most say the opposite—they feel even busier. That’s likely because they’re finally able to move through life at their own pace.

7. Identity: Who Are You Without the Title?

For those in highly skilled roles, the idea of stepping away from a career can feel like a loss of self. You’ve built an identity around being a doctor, a professor, an attorney. Instead of focusing on what you’re losing, consider all that you stand to gain in this next phase of life.

8. Risk: Are You Ready to Take the Whisk?

Yes, there’s risk in change. There’s risk in retiring and living off your nest egg. There’s risk in changing careers. But if you’ve planned well, these should be calculated risks. I knew I was taking a risk leaving the stability of the university, but I love to cook—and as my kitchen towel from my wife says, “Don’t be afraid to take whisks.”

Final Thoughts: A Framework for Clarity

Maybe it’s not time for you to completely retire. Maybe it’s time to cut back. Maybe it’s time to embark on a new career. Or maybe it’s just time to squeeze a little more life into your day-to-day. Whichever the route, the above framework applies to all of these decisions in making sure you are emotionally ready.

On the financial side, take the time to complete a detailed, goals-oriented analysis of your future by modeling your personal and financial goals compared to your income and savings. Don’t rely on rules of thumb or mimic others—these don’t count as calculated risks. You’ll feel more confident knowing you have a personalized, well-informed plan.

Too young to think about retiring? I would encourage you to work hard to make good financial decisions early so you have more flexibility to only have to worry about the emotional side of retirement or making a change in your future. Your future self will be very thankful. I know mine is—retiring from my academic career hasn’t just made me a more present Wealth Manager, it’s also made me a better Spouse, Friend, Brother, and Uncle.

Connect with us to explore your own roadmap—whether you’re preparing for retirement or a new professional chapter.