Just one more!

Many of us can remember the days of carefree adventures with friends in the neighborhood where time floated by blissfully until those dreaded words from a parent - "time to come in!" 

I'm sure many of our parents would be quick to recall our immediate response - "Just one more minute!" 

Whether it's one more minute, one more cookie, one more push on the swing, or one more chapter of a bedtime story, we aren't quick to move on from activities that we enjoy or derive comfort from. 

The same can be said for many as they confront the transition to life after a career. Many of us are reluctant to move beyond that which is familiar and comfortable, even if that transition offers the opportunity for more freedom and potentially more joy in our lives.  

Why is that? What is the source of fear that exists for pre-retirees that when having achieved the milestone that they so long envisioned for themselves, they are confronted with anxiety that they never saw coming? 

In many cases, this anxiety leads to the dreaded 'OMY' disease – One More Year. 

This is a condition that I have witnessed many times in my role as a family wealth advisor. After having developed and implemented a successful financial plan that achieves the critical 'tipping point' of financial independence, it really comes down to personal readiness for the transition to the next chapter of life. The great irony is that for many, this is the toughest part. 

When working with business owners in particular, this phenomenon is often amplified. Having worked to achieve both financial readiness, and the readiness of the business to transition to new owners and leaders, the one dimension that often gets in the way to sabotage the transaction is personal readiness.   

For both business owners and anyone who has worked decades in a career that has consumed their time and energy, it is not difficult to see how one's identity starts to become intertwined with their work life.  This is why for many, the prospect of retirement means confronting the loss of a significant part of themselves. 

Rather than confront the pain of this 'loss', many resort to the familiarity and comfort of the status quo... hence, One More Year. 

What’s the antidote?

Self-awareness

Most clients I work with are reluctant to acknowledge that 'OMY' is something they need to worry about, and in many cases will emphasize how enthusiastic they are about the prospect of kicking back and relaxing after long careers. However, those that are more self-aware have a much better chance of overcoming the challenge with a deliberate plan. 

Financial Readiness

The first step in the plan is to know your tipping point. In our practice, we don't often refer to 'retirement' given its' negative connotations, but rather plan in terms of financial readiness or tipping point. This is the point in time where you are no longer financially dependent on work to provide income for your lifestyle – but you may choose to.  

Reflection

For those that choose to continue, it will most certainly be done with a feeling of freedom and flexibility which can be very liberating. For these folks in particular, 'OMY' can be very tempting because it doesn't appear to cause any harm, and continued engagement can provide a sense of purpose and motivation to get up in the morning. 

The only counterpoint I would offer is that this approach is often considered in the absence of a thoughtful alternative. We invest a lot of ourselves into our businesses and careers, and that time commitment leaves little room for peering outside to see what else might capture our interest and enthusiasm.    

Because we 'don't know what we don't know', we are vulnerable to stealing joy from our own lives by failing to explore and ramble down paths less travelled. I encourage clients to begin these explorations well before their tipping point or retirement dates so that they can discover activities, hobbies or even other business interests. Identifying these targets for the future can really help build motivation to move forward without dread and fear.     

Perspective

Framing the future as something worthy of pursuit means you will not be retiring from something, but rather aspiring to something.    

Not only does this approach minimize the risk of OMY, but it also provides both physical and mental health benefits. Retiring without activities and interests to replace the roughly 2,000 hours/year that we spend at work can lead to cognitive decline and accelerate diminished overall health. 

I'm sure we all know of examples where recent retirees have had their ideal vision of retirement blown up due to compromised health or mobility. This is an important consideration when planning the timing of our transitions because none of us are promised a healthy tomorrow. We have no idea how much valuable 'health span' we are consuming with every additional year of delay.  

The sooner we can identify what we are transitioning to, the sooner we can get on the track of harvesting the benefits that the next chapter will offer; moreover, we can enjoy this time while our health and mobility will allow it. 

I encourage anyone facing (and possibly fearing) a transition in life to frame 'One More Year' not in terms of maintaining the status quo, but rather one more year of being inspired, learning, growing, and reaching.    

I strongly believe that our well-being doesn't result from the pursuit of happiness, but rather being happy in our pursuits... even in retirement. 

Cheers,