Afraid to Retire?

This piece from the Public Broadcasting Network's show Nightly Business Report got me thinking. Why do people fear retiring early? Is it that we Americans don't know what to do with ourselves if we're not working? The piece gave me the impression that many people on the show have assumed that retiring from work means retiring from life? Notice how old the retirement experts look?¹ If they are such experts, why aren't they retired already? Have we all been brainwashed into believing that we "are" what we "do" (for a job, that is).

My experience with retirement and retirees is more positive. I can't tell you how many retirees, young and old, tell me that they had wished they had retired sooner. Most are having the time of their lives. Sure, many retirees don't have as much money as they want (who does?). But what they do have is time; time to do whatever they want, whenever they want (within reason, of course). Many retirees I meet tell me that they wouldn't give up this freedom just to make a little more money. And most retirees tell me they are busier than ever. "How did I ever have time to work?" I often hear.

So those who find themselves unexpectedly unemployed should sharpen their pencils and see if they can develop a plan to retire. Of course, your plan will probably involve sensibly, but perhaps drastically, downsizing your lifestyle. However, if you can find a way to make it work for you, you shouldn't let fear of retirement stop you. I can almost guarantee that you won't regret retiring.

There are, of course, many folks affected by unexpected unemployment for whom an early retirement (or any retirement) seems unattainable because of credit card debts, commitments to pay for college for offspring or other financial responsibilities. But losing a job, although painful, may be the impetus which causes serious reexamination of lifestyles and ultimate goals in life.

Sure, many folks who find themselves unexpectedly unemployed will need to find new employment. But perhaps the shock of unemployment will cause them to come to the realization that they can't maintain their current lifestyle and have a successful retirement. Also, being unemployed often teaches people how little they can actually live on. This then, may be somewhat of a silver lining.

Since no one can successfully retire on credit, those who can't realistically retire immediately should use this period of unemployment as a time to step back from their life and desired lifestyles for a moment to realistically consider what their exit from the workforce strategy is ultimately going to be. Most will conclude (perhaps begrudgingly) that lifestyle cutbacks must be part of the plan (even after they land a new job) if their retirement is to be successful. By making lifestyle changes now, aggressively paying off debt and by learning to live below your means, almost anyone can put themselves on road to a successful, if not early retirement.²

By using an unexpected unemployment to seriously look at your future, some people may find that with some lifestyle changes, they can retire right now. If you can do it I urge you to try it. There is nothing to fear. You can always go back to work if you find you don't like it. Other people will find that retirement is not in their immediate future. While looking for a new job, those people should use the experience to figure out what they'll need to do to get on track for a successful retirement

The sooner you retire, the sooner you can answer the dreaded "what do you do?" question with the snappy retort: "In case of what?"


¹ Except, of course, Emily Brandon from U.S. News and World Report.

²Parents paying for kid's college should insist that their offspring downsize too. This may mean selecting a more affordable college (perhaps a less expensive community college for the first two years), working part-time and/or tenatiously applying for and getting scholarships to help pay for college.