Retirement Readiness Ensures Retirement Satisfaction
Business owners view a business transition or "retirement" much differently than most Canadians. For most business owners transitioning out of a business or retiring does not mean slowing down or endless days of rest and relaxation. Rather they see "retirement" as a new, active stage in their lives characterized by continued personal growth, personal reinvention and new beginnings in work and leisure. (Tip: Take our Retirement Satisfaction Predictor and see how you feel about retirement on a conscious and subconscious level before you make necessary plans for transitioning out of your business.)
When contemplating the decision to retire business owners look at:
- Financial Security
- Health Status
- Family Responsibilities
- Timing of a partner’s retirement
Satisfaction for business owners in retirement is based on the level of personal planning before an exit. Primarily, satisfaction is related to financial preparedness. For a business owner who has a vast majority of net worth tied up in business, this is an important consideration.
Satisfaction is also related to the emotional transition to retirement; challenges can arise due to conscious and subconscious reactions. Many business owners report that even thinking about retiring is as stressful as going through a divorce or bankruptcy and raises questions about self-worth, personal fulfillment, self-actualization, and mortality. Business owners who plan for retirement and voluntarily exit their businesses are 3X more likely to be satisfied with the retirement experience and adjust more successfully to the role of retiree.
Factors that contribute to a retirement adjustment ‘crisis’:
- Personal identity
- Marital status
- Lack of financial resources
- Involuntary vs voluntary transition
- Missing contact with others
- Not having a plan
Our experience with business owners who have completed a transaction in order to retire has taught us that being prepared emotionally can pave the way for a smoother transition. We are using the Retirement Satisfaction Predictor, developed for the Exit Planning Institute, as a tool to gauge the attitudes, beliefs and values of business owners regarding the transition out of their company into retirement.
Please click here to take the survey. You will receive a report from Strategic Succession that will indicate your retirement readiness on a conscious and subconscious level.
Want to know more about selling your business and retirement readiness? Come to the Exit This Way seminar on Thursday Feb 23 from 8am – 12:30 at the Metrotown Hilton. Join me and fellow business transition experts Scott Griffin, Axel Christiansen, Don Sihota and Lilly Kazaz present key considerations for business owners to sell their business confidently. Learn more here.
“When you spend years architecting your life around a business and suddenly it’s gone, you’re probably going to have an identity crisis and some post-partum depression.” From HBR by Jeff Giesa