Whether clients elect to retire early or are forced to, you can make a difference in whether it feels like a boom or a bust for them.
This article first appeared in Rethinking65.
Angela is closing in on three years into her post-career life. She decided to take early Retirement because the circumstances at work were volatile and unknown. While she wasn’t forced into retirement, she felt the pressure and the need to make the change before it was made for her.
Her Lifestyle has fallen into a routine of a few trips a year, assuming presidency of her homeowners association, and devoting time to the upkeep of her home.
“When my daughter asked me how life was going, I could only tell her it was OK,” Angela told me. She feels and even knows something is missing in her life, but she’s just not quite sure how to change the situation.
This year, tens of thousands of U.S. government federal workers have done what Angela has done. Through the administration’s Department of Government Efficiency (DOGE) initiative, more than 154,000 employees have taken a voluntary buyout or early retirement. While the data is much harder to track in the private sector, so far this year some estimates are nearly 60% of retirees left the workforce earlier than age 65.
Whether clients are financially prepared or not, financial advisors must be ready to discuss how to realign their lifestyle with this portfolio. Fundamentally the discussion is going to come down to activity. Based on data collected from my assessment tool designed to help those near or in retirement optimally to use their time, wealth managers can assist their clients with an early departure strategy highlighting some basic assumptions.
The average respondent to the assessment is just under 60 years old. They expect to live to nearly 88, on average, meaning advisors should help them plan for two decades or more of retirement living. How will quality of life be maintained when 20% to 25% of life expectancy is lived in post-career? Angela certainly wonders about her ability to maintain the energy level she needs to live like she does today.
Only 17% of respondents strongly agree they have a clearly defined life purpose outside of work, while 26% openly disagree. This signals an opportunity for advisors to help clients craft a new post-career mission statement. Angela recognizes her need to broaden her life strategy to bring more diversity.
Determine the impact of worry will and could have on your retirement life.
The assessment highlights that staying connected to others has measurable Mental Health benefits. Advisors can encourage retirees to build social structures before leaving work to avoid isolation and Depression. Time must be invested in Relationships that will outlast career. Angela acknowledges that her social circle is beginning to close, as friends are unable to Travel with her and others battle Cancer.
Even though many federal workers might have been forced out of their job, that does not negate the importance of their work and how it is intertwined with life. Over 78% of participants still find value, worth, or satisfaction from their career, and over 40% say it is “very important.” Advisors must emphasize that career identity plays a huge role towards an inclination to retire, causing many to delay post-career life.
The average person spends over 40% of their awake time in their job when they have a career. Only 38% who took the assessment agree they can manage their time without the structure of a job, but over 40% are neutral or unsure. Without guidance, early retirees may face a “time vacuum” that can lead to Anxiety or regret. Angela will certainly tell you she sees a void when it comes to creating fulfilling activities.
The evaluation shows that being financially ready on paper does not always equal being emotionally ready to retire. Angela could have retired even sooner. It wasn’t until the uncertainty of her work environment caused her to act sooner than planned.  Advisors who address the mindset shift alongside portfolio planning can deliver more confident, purpose-driven solutions to retirees.
We don’t know if the U.S. government’s trend of offering early retirement will continue. We do know that more people are going to retire, early or not. Advisors who help meet the financial needs are only helping with part of the picture. The financial services industry will only be able to fully meet clients’ needs when it considers factors beyond Money—such as the length of retirement, sense of purpose, emotional well-being, separation from career identity, time management readiness, and adaptability to life changes.
David Buck is the author of the book The Time-Optimized Life, coauthor of The Retirement Collective, and owner of Kairos (Time) Management Solutions, LLC. Learn how to apply the concepts of proactively planning and using your time. Take the Time Management Analysis (TMA), the Retirement Time Analysis (RTA), or all the other free resources offered to help bring more quality time into your life.
Content development for this article involved human expertise supported by AI-generated analysis and formatting.
The post Creating an Early Retirement Strategy first appeared on Infinity Lifestyle Design.
