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My dilemma: I’ve already announced plans to retire this spring, but my financial situation isn’t as secure as it was 2 months ago. What should I do?
Elaine Varelas provides reassurance that it’s okay to reconsider retirement plans.
Q. I was set to retire this Spring and informed the leadership of my company. I made some money moves before the election, but I realize now I can’t afford to retire as planned. Should I ask if I can stay longer at my job? I’ve not been replaced yet. This is so humiliating.
A. There are so many people who have announced their retirement or who have recently retired who are significantly concerned about the changes in their retirement financial status given today’s financial uncertainty. Your personal situation is unfortunate but first make sure that it is accurate. Two months is not a long time in stock market days or months or years! You chose to retire at this time for a reason. The first step is to confirm whether retirement is truly unaffordable or whether fear is driving the reconsideration. You know, most financial people will advise you to still stay the course, regardless of the frightening volatility and downturn in the market at this point.
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You are in a good position if your company hasn’t replaced you yet and hasn’t started a succession campaign yet. You could approach your manager or HR leader privately and say, you know if the timing is right, I’d really like to reconsider this for the next 12 months. I think since you announced your retirement most organizations have started to come up with some kind of succession plan to identify people who could be promoted into your role or employees who could change roles and responsibilities.
Have a conversation with your manager and ask if there is an opportunity for you to stay with the organization in a full-time, part-time, or consulting role or even a phased retirement for some defined period. Don’t put them on the spot but instead offer them time to think about the situation and what it would mean to the organization. You might want to put something in writing that highlights the kind of roles that you could fill whether it’s training your successor or something that makes this of greater value to the organization and not just financially for you.
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When people decide to leave to retire and leave an organization, there’s often more than financial or age influences at play. Workplace dissatisfaction may have played a role in your retirement decision making. You may have just seen your time coming or been fed up with something and they may have seen that as well. So, regain or maintain a positive outlook and attitude in terms of how you can support the organization as they may be looking for some way to help you if you’ve had a long-term relationship with the organization.
They may be extremely happy that you’ve decided to delay your decision to retire. Many people might be upset, concerned, or embarrassed about reconsidering retirement. Often people discuss “failing at retirement”, meaning they go back to work after a year or so. You don’t need to discuss the financial motivation to stay, and focusing on your financial well-being should be a priority and nothing to be ashamed of. Ensure a professional you trust is giving you good financial advice and recognize that even if your company can’t let you stay, many options exist.
Be civil. Be kind.
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