Question:
I am a 64 year old lawyer that owns a small general practice law firm in Springfield, Illinois. There are two associates in the firm and two staff members. I have been thinking about retirement and how I should begin planning for it which I have not done. I love the work that I do for clients and have very few other interests. I get satisfaction and fulfillment from my work. I really want to work for ever. I would appreciate you thoughts.
Response:
You are not along. I have many lawyer clients that are in the 80’s and still working and going strong. I had a personal injury plaintiff attorney in his mid 80’s that tried a large medical malpractice case last year and obtained a very large jury verdict in the case.
Many lawyers, more so than many other professionals, are high achievers that are married and addicted to their law practices. They believe that their self-worth is reduced if they are not accomplishing something important. Psychologists refer to this as “achievement addiction.” In his book, The Psychology of Retirement, Derek Milne advises that surveys in the United States suggest that over sixty percent of retirees “un-retire” and continue to work in some form of paid work, then “re-retire” or semi-retire” later on in their retirement (Milne 2012, 11-05). A major challenge for lawyers that have an achievement-focused personality will be to find ways to replace the sense of achievement that they have experienced from the practice of law after they retire. While playing golf may be a worthwhile recreational activity for those that enjoy it, it will not be enough to fulfil the needs of those with an achievement-focused personality. These individuals will need activities where they can contribute and make a difference and continue to fulfil their self-actualization and self-esteem needs. Activities such as mediation, teaching, consulting, volunteer work and community leadership often fulfil these needs.
Identifying Other Interests
Many of us have heard some of the stories of unhappy retirees ranging from poor health, depression, and premature death. Years ago when my mother passed away my father’s boss asked my father what he could do and how he could help. My father told him, “keep me working.” My father’s boss kept my dad working and he worked every day of his life until he passed away at 84. Dad used to tell me that when you enjoy your work and your work is your hobby, it is not work. For some people the best way to retire may be to continue working.
For others, rather than being a time of easing back and retiring into old age or continuing to work in one’s old job or career, it can be a time of personal growth and an opportunity to explore other interests, callings, and vocations. It can be a time of freedom to do what you always wanted to do but could not because you had to earn money and the pressure of work prevented you from pursuing you dreams and interests that were in tune with you values and beliefs. Here is a list of a few areas that you might want to explore:
- Teaching courses at a local law school or university
- Mediation
- Pro-bono work
- Writing
- Photography, gardening, travel, or other hobbies
- Serving as a director on a profit or non-profit board
- Counseling
- Volunteering
Planning Your Retirement
One way to begin to visualize getting older, your mortality, and retirement is to think about the amount of time that you have left on this earth. If you are sixty-five you may live to be eighty. Thus, you have fifteen years left and this is your planning horizon. Retirement planning is deciding on how to use this time. It is about the process of deciding what you will do in your retirement and putting a plan into practice. As the amount of time left to you decreases, its value increases to the point where it will be more valuable to monetary assets. It will be more valuable that a new house, a new car, a new boat, or a chest full of cash. Time enjoying life, being with your family, and spiritual renewal will become more important than earning money. The greatest change when you retire is how you will use your time.
Retirement planning begins with taking the time to think about how you will use you time. If you live fifteen years beyond your retirement your will have 28,800 hours that will have to be filled with retirement activities. (five days a week, eight hours a day, 48 weeks, for fifteen years) Start by creating an interest activity list, a time plan, and then DECIDE, PLAN, and ACT.
Options include:
- Continue working in your present situation;
- Continue to work for compensation but in another occupation; or
- Retire and pursue recreational and other retirement activities without compensation.
If you decide to keep working you need to begin thinking about your succession plan when and if something happens to you. It may be time to consider bring lawyers in the firm into equity ownership or at least have in place an arrangement or agreement with them in event that something would happen to you – a practice continuation agreement.
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John W. Olmstead, MBA, Ph.D, CMC
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