Reasons People Do Not Retire (Financial and Other)

[scrabbler1]

To me the main thing that holds people back and was not on your list is(was) not being able to get health insurance. That should be removed going forward.

+1 you beat me to it! That is, if it is a reason people don't retire early, as in pre-Medicare eligibility age.

 

[jollystomper]

Another reason I have heard from those who are married, which surprises me:

"My spouse doesn't like/will resent me being around all day"

My DW would *love* me to retire yesterday and is more than willing to seek additional work or be even more frugal if it would help. She likes me being around the house even if we are working on different projects, and we make it a point to socialize/work out together several times a week. I guess I don't understand not wanting your spouse to retire if the financial ability was there.

 

[UserRequested]

Another reason I have heard from those who are married, which surprises me:

"My spouse doesn't like/will resent me being around all day"

My DW would *love* me to retire yesterday and is more than willing to seek additional work or be even more frugal if it would help. She likes me being around the house even if we are working on different projects, and we make it a point to socialize/work out together several times a week. I guess I don't understand not wanting your spouse to retire if the financial ability was there.

May not be just the spouse who resents it. Could be the pool man or the house maid.

 

[ER Eddie]

For me it would be:

1. Money issues of one kind or another. Do I have enough? What if ___ happens? What then? Wouldn't it be better to stack up just a little more savings? This would include health insurance, which imo is basically a money issue. Walking away from a job at peak earning level is counter-intuitive.

2. Uncertainty about being able to find even part-time work. I plan to do some type of PT work in retirement (semi-retirement, if you prefer). Not from a financial need perspective, but just for the other benefits. I hear a lot of stories about unemployment, and they can get me worried about whether I can find a part-time job if I decide to get one. So it makes me hesitant to let go of the bird in the hand.

3. Leaving behind friends and colleagues. They've been a part of my life for a long time. It would be sad to say goodbye.

4. All that free time. I'm not sure I could fill it with interesting activities. I am prone to laziness and lethargy, and left to my own devices, 24/7, I might turn into a lump. I hope not, and I trust not, but that would be one of my concerns.

5. My career is part of who I am, part of how I think about myself. I don't mean that it is "my identity," but it is certainly a part of my identity. And I like that part of my identity, I'm not sure I want to end it.

6. Probably the biggest: I enjoy many aspects of my job -- the intellectual stimulation, the challenge, the personal growth it forces on me, the chance to make a difference, a certain level of respect, the social interaction with colleagues, the ability to speak my mind, the fact that my opinions/judgments really impact people's lives (hopefully for the better), etc. It would be hard to give all that up.

 

[daylatedollarshort]

Do you or have you experienced similar thoughts, and how did you deal with them? I really want to retire. I do not like my job. I do not like working. There are many activities in retirement I would like to pursue.

I work from home so I still have an income and a career, but I work on my own schedule. I don't have to commute so that frees up 10 hours a week for other activities. We live near bike trails and a state park with lots of scenic hikes. It is nice to have time for outdoor activities like hiking and biking during the week.

 

[Arifriekinel]

I don't understand a whole lot of the concerns. So many people worry so terribly about being "a lump" in retirement, but I don't understand what's wrong with that if it's what you want to do? Putting off retirement for fear that what you want to be is going to look boring to other people just seems silly.

I work from home like daylate, and I don't feel obligated to go out and do things regularly. I don't like to. But I also don't see anything wrong with that and am having a hard time understanding why others do.

 

[ER Eddie]

I don't understand a whole lot of the concerns. So many people worry so terribly about being "a lump" in retirement, but I don't understand what's wrong with that if it's what you want to do? Putting off retirement for fear that what you want to be is going to look boring to other people just seems silly.

I work from home like daylate, and I don't feel obligated to go out and do things regularly. I don't like to. But I also don't see anything wrong with that and am having a hard time understanding why others do.

I think it's because I would feel useless and pointless, like my life had no meaning or purpose or significance. It's not about what others would think; it's about what I would think (and feel) about myself and my own life.

I do think my concerns about being a "lump" are irrational and exaggerated. I don't think I'd actually turn into an inert lump of matter, if I retired. I think it comes from acting that way during my downtime, because I'm pooped from work (and probably also crashing from the caffeine I drink during the workday). My irrational brain says, "If you retired, you'd be like this [tired, worn out, feel like doing nothing] 24/7." But in my more rational states, I understand that the fatigue is a reflection of work and caffeine. If I retired, I'd probably just "decompress" for a while, then shift my energies somewhere else.

I'm not really a person who is designed to become a 24/7 lump. In fact, my worries about it are evidence that I wouldn't become it -- if that makes sense. I'm too concerned about the issue to let it happen.

Still, that is one of my worries. I admit that it is irrational, but it does come up for me, so I thought I'd list it.

 

[Savesome2]

The OMY syndrome pulled at DW and me, but we focused on the fact that we were working about 10 1/2 months of the year to pay taxes and pad the portfolio, with only a month or so to cover our expenses. That perspective helped us pull the plug last year at 41 because so much of the year's effort seemed unnecessary and far less palatable than retirement. So far so good.

 

[citrine]

I cannot understand the fact that you hate your job, and have more than enough money to retire on without touching your principle and you are still having doubts!?!?!
I don't think you will ever feel that you have enough and that is sad. We only have one life...you will not take this money with you when you die. Your Megacorp will not care when you go either. As for the co-workers and such...really?!

 

[Arifriekinel]

I think it's because I would feel useless and pointless, like my life had no meaning or purpose or significance. It's not about what others would think; it's about what I would think (and feel) about myself and my own life...

...I think it comes from acting that way during my downtime, because I'm pooped from work (and probably also crashing from the caffeine I drink during the workday). My irrational brain says, "If you retired, you'd be like this [tired, worn out, feel like doing nothing] 24/7..."

...I'm not really a person who is designed to become a 24/7 lump. In fact, my worries about it are evidence that I wouldn't become it -- if that makes sense. I'm too concerned about the issue to let it happen.

Still, that is one of my worries. I admit that it is irrational, but it does come up for me, so I thought I'd list it.

OK, I get you I see that concern a lot around, as far as people talking about 'retire to something. Don't do nothing.' So I thought it was some social thing to feel useful.

I've never had internal need to seek our purpose or significance, so I must've just overlooked the fact that others actually do want to go out and do things. Without thinking that you'd be doing it for personal reasons, it seemed very contrary to a lot of the 'go ahead and jump, do what makes you happy,' mentality that also flows through this forum.

Thanks ER Eddie

 

[SumDay]

We're not quite there financially, but darned close.

However one of my real issues is an elderly (demanding, impossible to please) relative who will attempt to own me when I have more "free time". Really, I'd rather w*rk than be at this individual's mercy. So, when they go to the big golf course in the sky, I'll feel much more comfortable filling out my retirement papers.

 

[Spanky]

We're not quite there financially, but darned close.

However one of my real issues is an elderly (demanding, impossible to please) relative who will attempt to own me when I have more "free time". Really, I'd rather w*rk than be at this individual's mercy. So, when they go to the big golf course in the sky, I'll feel much more comfortable filling out my retirement papers.

Sound likes a reason to move to another state or country.

 

[NanoSour]

Although there are several reasons in the list I can relate to, #11 is the one that most hits home. At ripe, young ago of 18 I had a moment where I instantly knew what I wanted to do for a career. It took 9 years of hard work, being in the right place at the right time, and a good bit of luck to make that dream come true. Now, 22 years later I'm at Megacorp doing a job I truly enjoy and making more money than I ever thought I would. For better or worse, I save most of it and that fact had a major influenced on my decision to ER.

I know I'm leaving much on the table (ER 4 weeks from today), but it really came down to the DW wanted to move to the other side of the country. We could afford it, so we're taking the road less traveled. I can't wait and welcome the challenge of making all work out. Even if that means going back to work some day.

 

[Delawaredave5]

People work because either:
1. They have to, or
2. They want to, or
3. They are too scared to do differently

If you don't "have" to work, then the question is where is work on one's "list of where they want to apply themselves each day".

If work is high on list, then keep working, full or part time.

But here's my point: There's a lot of people who have "more meaningful things they wish they'd do" but they keep working because they are too scared or lazy to try.

So #1 above is fine. #2 above is fine. Don't let #3 happen if it applies.

 

[tryan]

I really want to retire. I do not like my job. I do not like working.

That sums it up ... anything else is analysis-paralysis.

But - hey - SOMEBODY has prop up social security for the rest of us ... so KEEP WORKING!

 

[dunkelblau]

If I were in the same position of having a job that I didn't like but was financially set so didn't need the paycheck or the benefits, I would first try to get the parts of the job that I didn't like fixed. This could be done informally by talking with your supervisor or more forcefully with a resignation letter. Get your list of changes down on paper beforehand, make sure this is exactly what you want, and go for it. I personally would not show up for a job I don't enjoy in exchange for a paycheck that I have no use for. Work history is a sunk cost and we have limited time left, so unless there's something in it for me going forward, I'd rather take my chances trying something new.

 

[DerbyCity]

I found this a most interesting post...1st, I plead guilty for reading more than posting.



I looked at Shawn's 13 reasons at the start of the post. I tried to see which ones might have some common ground. Excluding # 13 (kind of a "catch all"), it seems to me, there are 4 common threads in the reasons listed:

1. Money concerns (# 1 and 2)
2. Love of job and/or co-workers (#3, 4, 5)
3. Fear of the unknown (#6,7,8,11 and 12)
4. What others think (#9, 10)

It's interesting how the reasons are grouped generally in order.

A short time ago, AARP had an interesting article titled "Top 5 Regrets of the Dying". Several were reasons I might have anticipated, but the 1st caught me somewhat by surprise: I wish I'd had the courage to live a life true to myself, not the life others expected of me.


Since those on their death bed have little to fear from what others think I found this article particularly powerful. My somewhat convoluted point is: If money concerns are not your driving issue for retirement, make sure your plan/decision does not leave yourself with the Regret noted above.

Best of luck to All!!

 

[Birchwood]

Since I was a young man, I believe that a life should be divided in not so equal parts.
1. Growing up and study
2. Working and raising a family(can be defined differently).
3. Retirement- time to enjoy life with enough time and freedom.

Unless endowed with incredible luck and opportunity, #1 and #2 could actually take over ones life and very little is left for #3.

I think #3 should be planned even at the start of #2. It requires very hard work and thoughts about everything that could sabotage #3.

If you are not ready for #3, you can think of all the reasons why not, and each is valid.

If you decide to go for it, it means that you have taken all the factors in, and still think that #3 is the best option.

I don't think that in your death bed, the first thing you may want to do is get back to your office! If you want to get back to work at such a critical time,then
the forum for you is called "Work forever" not early retirement.org.

 

[Ozstache]

I found this a most interesting post...1st, I plead guilty for reading more than posting.



I looked at Shawn's 13 reasons at the start of the post. I tried to see which ones might have some common ground. Excluding # 13 (kind of a "catch all"), it seems to me, there are 4 common threads in the reasons listed:

1. Money concerns (# 1 and 2)
2. Love of job and/or co-workers (#3, 4, 5)
3. Fear of the unknown (#6,7,8,11 and 12)
4. What others think (#9, 10)

It's interesting how the reasons are grouped generally in order.

A short time ago, AARP had an interesting article titled "Top 5 Regrets of the Dying". Several were reasons I might have anticipated, but the 1st caught me somewhat by surprise: I wish I'd had the courage to live a life true to myself, not the life others expected of me.


Since those on their death bed have little to fear from what others think I found this article particularly powerful. My somewhat convoluted point is: If money concerns are not your driving issue for retirement, make sure your plan/decision does not leave yourself with the Regret noted above.

Best of luck to All!!

Excellent post. The regret you list is what I am heading for if I keep doing what I do because of what others expect. Fortunately, I have only felt this way for the last six months out of an otherwise very happy and successful 30 year career to date, but I don't want it to carry on too much longer.

Although not to anywhere near the same safety buffer level as the OP, I am comfortably FI right now, barely tolerate my job and would ER in a heartbeat. For me, however, it is my well-meaning family cheer squad that provide the greatest resistance to me doing just that. I need to stand up to them, lest those words of regret will also pass my lips on my death bed.

 

[Shawn]

Thank you all for the excellent comments regarding my original post(s). To follow-up and address a few of those comments …

My primary goal for the last 10 years has been to retire early. I do not like my job. I have more than enough money according to all the standard financial metrics. There are several activities I would like to pursue in retirement. All of the appropriate “should I retire” boxes have been checked. So it is quite surprising that I am hesitant about retiring, especially since the perfect opportunity is in front of me in the form of a company buyout. I always assumed it would be easy to pull the trigger when the time came. I assumed wrong. This illustrates that it can be difficult to determine how one will respond to a given situation until one is eminently faced with that situation.

While there are a few likely reasons for my hesitation to retire, I believe the primary one is money. Some might call this greed. To quantify, every additional year of work has a before-tax financial value of about $400K to me. This is split evenly between my salary and the increasing value of my pension (spread over my lifetime, in today’s dollars). That is a lot of money for one year of work. It does not matter if I already have enough or even 10 times enough. It is still a lot of money. I will never again have this financial opportunity. This opportunity is the reward for the nearly 40 years of non-stop 60-80 hr school/work weeks since I was 15. This is a lot to give up. (And yes, while many people claim to work 60-80 hr weeks, I really do.)

It is sometimes said that “work = money” and “retirement = freedom + flexibility”. But money provides its own freedom and flexibility, especially when the future is unknown. Three examples … 1) Until a month ago, there was a possibility that I would need to buy a house for my elderly mother due to her changing living situation. While that possibility didn’t materialize, I easily could have written my mother a check to buy a house. Not a down payment, but a check for the entire house. There was no stress or worry on my part because I had an easy solution to what could have been a difficult problem. 2) On weekends, I sometimes stop at Open Houses in a newer McMansion sub-division that is on my way to work. I have no immediate need for a large house. My 50-year old 1200 square foot fixer-upper is fine. But it is interesting to see how the “other half” lives, and it is comforting to know that I have the freedom to buy a larger house should I choose. 3) I have spent tens of thousands of dollars on veterinary bills for pets and other animals. I am able to do what I feel is best for the animal rather than make decisions based on cost.

So the level of freedom, flexibility, and physical and emotional security provided by money can be very significant. In this sense there is never enough. It is not about material goods. It does not matter if the money is actually spent. But I would rather be in a position to handle any financial life event rather than feel constrained. No. I cannot take it with me when I die, but it will go to charity in the end. I do not understand the problem with this nor do I consider this sad (as one person suggested).

Of course, by no means does this suggest that a person should work forever or even that a person should not retire at an early age. Everyone needs to balance what is important to them. But it can be difficult to recognize what is truly important. If I retire next week as part of the company buyout, I may regret the loss of $400K for each additional year I work. Alternatively, I may be delighted by the decision and never look back. I have never retired before. I do not know how it will feel.

There is solid logic in the suggestion that I should not retire if there is hesitation. After all, I can easily reverse a decision not to retire by retiring at a later date, whereas I cannot easily reverse a decision to retire since I will not be able to return to my job. But hesitation is a natural response to uncertainty and fear. Sometimes it is rational. Sometimes it is not. I was 7 years old when I first tried jumping from the high dive at a swimming pool. I hesitated. It was terrifying up there. In fact, it was so terrifying that I did not jump but climbed back down the ladder. This was an understandable reaction but also an irrational reaction. There was no real or significant danger since I could swim and planned to jump feet first. But I still did not jump. I tried again a week or two later. Again, I hesitated. But this time I jumped. In hindsight, I should have jumped the first time. Hesitation is not absolute.

Final comment. Yes, concern for co-workers is important. No, the world will not end if I retire. But I “manage” a group of 20+ individuals. Several have expressed significant concern about my possible retirement. This is somewhat surprising since I do not consider myself to be a particularly good technical/scientific manager (in fact, I keep telling my own supervisors that my job is worthless and that they should fire me - no luck so far). But I tend to be adept at foreseeing and intercepting problems, smoothing difficult interpersonal situations, and protecting the employees in and outside my group. Also, I am very effective at understanding and manipulating financial constraints to ensure that employees in my group are fully covered. So yes. I do care about my co-workers. I work for them, they do not work for me.

I still do not know if I will retire next week but I appreciate the opportunity to be introspective about this issue. It helps to write it down and to receive feedback from others who are or have been in similar or not so similar situations.

 

[ER Eddie]

That makes sense. It would be hard for me to give up the idea of earning $400K for one year's work. That's a lot of dough. I can also understand the security-oriented concerns, the notion that if you have another 400K, certain potential problems will no longer be problems. I also appreciate your willingness to leave your money to charity. I think that's noble. You also sound like the kind of boss I would want to have.

I would just add that you deserve to enjoy your life, not spend it all accumulating more and more money to stave off every possible financial problem. You seem very attuned to what other people need (e.g., your mother, your subordinates, charity), but you've got a right to take care of your own interests/happiness too.

You said, "I would rather be in a position to handle any financial life event." Well, okay, but you know, no one is ever 100% guaranteed of anything, and for every year you continue to strive after more financial security, you're sacrificing another year of your personal happiness to the job. Just make sure that's worth 400K to you.

 

[Katsmeow]

Thanks for explaining it more.

I think that everyone has to make his or her decision where the time versus money line is drawn. Some never draw and work until very old age. Some plan to draw it and are met with unexpected early death. Some draw that line early and prioritize time over money -- and while most are probably happy there is no doubt some may end up with not enough.

When I was working full-time (I semi-retired 3 years ago), I was earning a high salary (not 400k high, but high). Just a few weeks ago my son (in college) asked me what my full-time salary had been and when I told him he couldn't believe I had quit. He pointed out how long it would have taken me to save enough up another million and his point was valid.

And I do think that one of the important things money brings you is freedom to make choices. When that son - the one in college now - needed a therapeutic school that was almost $30k a year when he was 10, money allowed me to pay for it (ironically, tuition for college is a lot less than what I paid for that school!). So - yes, I understand that money allows one the freedom to make choices.

And, yet, I still gave it up 3 years ago (well I've worked part time at about an average of $75k a year for 3 years). I just came to a point where - while I would like to have even more money - I wanted time more. Even now, I am still pondering full retirement. At times I plan to do it the next time I'm at the office. At other times, I think about how much I could earn if I kept working. I've even considered going back full-time (which I have an invitation to do in my situation).

I guess I would say 2 things to you - one more practical than the other.

For the practical - Given your apparent importance to your work environment, could you negotiate some type of reduced schedule that would give you more time for other things but would still pay you a significant amount?

When I was working I had one of those more than 40 hour a week jobs (not as many hours as you work, although I did spend those hours at times). I was valuable to my employer and they were willing to allow me to change my work so that I have worked 1 or 2 days a week for the last 3 years.

For the other --

The calculation of time versus money may be different for you than me. You are in your late 40s. When I think about full retirement now, I am in my late 50s. So for me, time is more pressing. In your case I could see why you could come down the other way.

 

[scrinch]

Shawn, I am in roughly your position now, but at age 54. Seven years ago I was just becoming FI and accepted a buyout shortly after a MegaCorp merger. I wasn't emotionally ready for the change, and I felt very lost following my last day at work. I felt like the rest of the world was carrying on with their trip and I was getting off the bus to watch from behind in the dust. I had been working with effectively no break since age 15, and I didn't have an alternate sense of self-worth set up yet. I would drive to the store and feel like people were watching me and wondering why I wasn't at work doing something productive. I then started consulting 1/2-2/3 time and slowly got used to the feeling of being my own master away from the office environment. After a few years I got to really like making my own schedule, and didn't feel at all uncomfortable with being out-and-about during the 8-to-5 hours. After 5 years of consulting I decided that I had it in me to take one more kick at the cat, so I took a job back at Megacorp and moved overseas to work on a big growth project. I have been here for a little over 2 years now, and am enjoying the work, but am also frustrated by Megacorp processes. One of the most important reasons I stick with this is because of my co-workers...a couple of old friends I've worked and shared life adventures with for almost 30 years, and other youngsters just out of school and ready to learn a very interesting field of work. When I finish up with this assignment I will definitely be ready to retire this time, but that will be in 1-3 years. If DW wants continued salary income after that, she will be welcome to go bring it in herself.

So I guess I am saying that you may well feel lost if you take the buyout. I did...but I got over it. And taking the buyout doesn't necessarily mean that your big earning days are over. I'm earning and saving more than double now what I was in 2006. And my networth now is more than double what it was in 2006. Even if you take the package and find you're not ready, you'll still be smart and marketable.

Best of luck in whatever you choose.

 

[travelover]

....Of course, by no means does this suggest that a person should work forever or even that a person should not retire at an early age. Everyone needs to balance what is important to them. But it can be difficult to recognize what is truly important. If I retire next week as part of the company buyout, I may regret the loss of $400K for each additional year I work. Alternatively, I may be delighted by the decision and never look back. I have never retired before. I do not know how it will feel...........

My perceptive from 6 years in retirement - you are going to die, you just don't know when or how. When we are working, we don't have the time to think about what that really means. That money is finite is obvious and reinforced daily. But life is finite, too, and the only real purpose of money is to make life as enjoyable as possible while life lasts. Having a billion dollars to spend in my last year of life wouldn't make me one iota happier, but having another year of retirement to enjoy is priceless. The really hard part is recognizing when we have enough.

 

[Which Roger]

6) “I will be bored in retirement.”
7) “I will have no purpose or goals if I retire.”
8) “It’s what I know, it’s what I’ve always done.”

Seeing 6, 7, and 8 together made me reflect on why none of these are holding me back. 6 is easy - I'm bored at work, so there's little chance I would be more bored in retirement. The company has been struggling for a long time, and all of the interesting/creative work has disappeared or moved to other locations. 7 is related to 6 - the projects and opportunities that inspired me in the past are long gone, with little hope of coming back, and whatever sense of purpose came along with them is also gone. 8 is also related - the work I'm doing now bears little resemblance to what I was doing when the creative opportunities existed, which is when I felt like I was making a real contribution.

The upside of the company's struggles is this: since I'm no longer getting these things from my job, I've found myself getting these things more and more outside of work. I've developed new interests - especially creative outlets - and have plenty of ideas for things I can do to "make a difference" once I pull the plug and have time to pursue them.

I think I've always been wired for ER, but a lot of the negatives that have been occurring at MegaTechCorp have also been positives in that they will make for an easier transition to ER.