Have you ever wondered why some people keep working long beyond when they could seemingly retire? As an expert in retirement, and more specifically, the psychology of retirement, this question comes up with many retirees at some point. If you can easily retire, why are you still working? The common, off-the-cuff answer is usually, “because I love what I do.” This answer seems to make sense until you dig deeper and discover that delayed retirement is not evenly distributed among all careers. Some professions delay retirement, even when they don’t have to, at a far greater rate than others. The question is, why? Ironically, many of the professions that are at the top of the list are among the highest income earners, so clearly money isn’t the issue. Retirement is often delayed by those who have a strong sense of identity in their work. To them, their work isn’t what they do; it’s who they are. Secondary to identity is flexibility. The ability to work part-time or in a consulting role allows them to slow down as much or as little as desired, but they can still continue to feel engaged. Finally, the last big reason is that for those with high incomes, the money can be simply too hard to walk away from. In professions where all three of these reasons intersect, retirement can be extremely difficult.
So, who tops the list? Doctors. Physicians and surgeons are the most likely to delay retirement beyond the average retirement age for a typical retiree of around age 64. Spending your career healing others or even saving lives creates a deep sense of identity. Doctors, in some cases, form lifelong relationships with patients, which can be hard to walk away from. Doctors tend to be lifelong learners, which creates a need for ongoing intellectual stimulation. There are many opportunities for doctors to reduce their workload or even move into teaching roles. As a result, I find that my doctor clients have the hardest time making the transition to retirement.
If doctors top the list, it isn’t hard to see why other professional careers are close behind. Attorneys, like doctors, can develop long-term relationships with their clients. Being a senior partner can bring a sense of prestige to a well-earned reputation. Legal work is certainly intellectually challenging, and there is potential for schedule flexibility to slowly transition into retirement. Ironically, financial advisors like me are close behind attorneys on the list.
Personally, I’ve spent the last 30 years helping people with their biggest stressor in life: money. I’ve built amazing long-term relationships with clients who I consider more like family. It would be awfully hard for me to walk away from that. I view my life’s work as a calling, not a job. It’s why I was put on this earth. Business owners and professors round out the top five on the list. For business owners, they often refer to their company as their baby. They have spent a lifetime building it, and it is really hard to hand it over to someone else.
All of these professions have an intersection of the three main reasons for delaying retirement: a sense of identity, future flexibility, and high pay.
The greatest challenge I see for those who don’t succeed in an enjoyable retirement is that if these retirees can’t continue their career, then they lose their sense of identity. They often have nothing to retire to. This is why it is crucial for those considering retirement to develop a plan for exactly what they want their retirement to look like. How will they spend their days? You can only golf so much after all. Having a deep understanding of what will give you purpose and a sense of identity now that your career is over will help to make your future retirement all that you dreamed it would be.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. To view Form CRS, visit https://bit.ly/KF-Disclosures.
Eric is President and founder of Reich Asset Management, LLC. He relies on his 25 years of experience to help clients have an enjoyable retirement. He is a Certified Financial Planner™ and Certified Investment Management AnalystSM (CIMA®) and has earned his Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations.
