Retirement seems to be a topic on many people’s minds lately. I have a doctor who is retiring next year, and several clients have asked me about the tax implications of their own upcoming retirements. I’ve even been asked about my own retirement plans, though I have no immediate plans to stop working.
While some people are eager to retire, the reality can be challenging. One of my clients wants to retire early but doesn’t have a clear plan for how to spend his time. For entrepreneurs, the decision is whether to sell the business or shut it down entirely. I’ve worked with a few clients trying to sell their companies, but the current interest rate environment has made that difficult.
I’ve also known CPAs who simply stopped working and told their clients to find a new accountant. Over the years, we’ve picked up clients from retired professionals in that situation. The lesson seems to be that retirement requires careful planning. A friend of mine who went part-time is struggling to fill her days – her garden and home don’t look any more tended than when she was working full-time.
The key is to have a real plan for how you’ll spend your time in retirement. It’s not as simple as just stopping work and assuming you’ll be content. Retirement takes preparation, both financially and in terms of how you’ll structure your days. Those who approach it thoughtfully tend to have a smoother transition.