The Barefoot Corporate Warrior
Fright? Flight? Paul Bird offers advice for those considering retirement in a two-part series. Part I – Time To Go? If so, Think. Prepare.
Legendary investor and frugal living exemplar Warren Buffett, 95, retired as CEO of corporate juggernaut Berkshire Hathaway on 1 January this year.
He, like many others decided to put off the retirement phase of the modern life cycle for as long as possible. People living and continuing to be physically and mentally capable for longer is a happening trend. The working 70+ cohort is a recent and noticeable workforce phenomena that is most likely here to stay. All power to them.
At the other end of the spectrum are those adherents of the FIRE (Financial Independence, Retire Early) movement – madly saving as much as they can, adopting spending and saving hacks and plotting a pathway to their idea of freedom – they are in a hurry to retire.
There is also a cohort which seem afraid of retirement and risk going on so long working that when they eventually do retire their time left on this mortal coil is characterised by poor health and mental/emotional distress.
We all know the stories of people retiring and being dead within a year. The sage heads shake – they hung on too long and were completely worn out by the time they stepped back.
We are aware of the real concern around financial longevity and running out of money before the end, leading to a miserable, final few years.
I see heightened levels of fear as people approach retirement ‘age’ when real decisions need to be made – fear of change, relevance, loss of status, mental and emotional struggle, being consigned to the ‘too old to have an opinion’ category in a youth-obsessed culture.
I have even introduced myself to people since I became (mostly) retired as, “hello, I used to be Paul Bird”. This is my wry nod to the widely-held notion that we become somewhat invisible in retirement and that our best and most relevant days are now behind us. I ‘get’ the fear of retirement angle
However, if you want to decide whether it is time to retire I suggest listening carefully to yourself.
I have been a longtime observer of the shifting sands in the Noosa River. Sand banks and channels come-and-go and the incessant movement of water brings constant change. Nothing remains the same with the passage of time. So it also goes for us and our lives.
A couple of years before I moved into being (mostly) retired I could feel a change. The ‘edge’ which gave work its attraction had dimmed (slightly). The highs of being in business, those moments of success were less likely to excite me. I still liked work, just not as much as I had previously. I was restless.
Something was on the move. The winds were blowing and I started to take notice of them, in the most positive way possible. My advice? If the winds of change are blowing in you, take notice, don’t resist. And then, take meaningful action before they blow you away!
And (for men particularly), don’t ignore your feelings. They might just be your saviour. Continuing to beat your head against the wall is only going to result in a headache. Feel the winds and let them buoy you forward. It might help avoid a mess later. Overcome the fear. Take flight.
So, how do you get ready?
Have the self-awareness to recognise that something has changed, or is changing, in you. Don’t ignore the feeling, embrace the shift. Focus on what the change might mean in a positive sense and resist the urge to interpret this as a negative. You are not ‘washed up’, ‘finished’ or ‘burnt out’ just because you understand something is going on.
Start to focus on what changes you would like to make. Share this with your significant other/close mate/s so that when you begin preparations for change this does not come as a shock to you or them. To make the change as smooth as possible, begin planning for the move to a non-routine way of life at least two years ahead of when work stops. Once the financial concern is put-to-bed, focus on the human elements – developing new habits and interests/ hobbies or re-kindling lost or dormant ones such as spiritual development, social, physical and healthy living, travel, volunteering, relationships – and FUN!
Prepare because if you don’t make it happen, no-one else will. The ideal is a rough plan for the first five years in retirement and I am not just talking about money.
Think beyond that.
But on that, will you have enough?
As Benjamin Franklin once said:
“There are two ways to increase your wealth. Increase your means or decrease your wants. The best is to do both at the same time.”
Someone else also said that the definition of wealth was simply if your means exceeded your needs then you were indeed wealthy.
If you fit the typical late career stereotype you are no longer financially supporting children, you own/almost own your home and have saved enough to either rely on
Super or a combination of Super and Government pension.
I am not a financial adviser but one thing I realised one day as I was wandering around the family home was that there were quite a few empty rooms.
As sad as this was, there were two benefits: firstly, our family home, as sentimentally important as it was, was an asset available for powering up a retirement change through the miracle of downsizing. Secondly, our base cost structure had changed significantly… and for the better. Many costs had simply disappeared. It gave us an annual figure to work towards when it came to the income we would need to generate to fund our retirement. The fear around the money question reduced significantly.
Finally, everyone deserves a farewell tour, a lap of honour in recognition for facing the challenges, the achievements and the sheer hard work over the course of a career. You deserve it, don’t question your worthiness for it. If others won’t oblige, give yourself one before you go.
Next Edition: Part II – Retirement. It’s Happened or Oh My God What Do I Do Now?
