This might be why you haven’t started planning for retirement.

Most baby boomers say that they plan to retire within the next 10 years and yet only a small number have actually made any solid plans for their retirement. Business owners in particular have difficulty ‘letting go’ of their businesses and moving on to the next phase of their life. Here are some of the reasons people often fail to plan for retirement and why you shouldn’t let that be you.

The Identity Factor

For many business owners their companies are their life’s work. They can feel extremely emotionally invested in their business almost as if it were their own child. For these people, much of their personal identity is tied into their business. They may dread life outside of being a business owner fearing they will lose status within the community.

Executives and professionals are also often plagued by the same kind of thinking as business owners. They fear leaving work, and the feeling of self worth and personal value that this work has given them.

These people have failed to address a very important question that anyone approaching retirement age needs to consider – “Who will I be outside of my work”?

The Fear Factor

Unacknowledged fear is often responsible for people procrastinating about leaving work for retirement. Fear can cause owners to suddenly walk away from the sale of their business, and executives and employees to have second thoughts about writing that resignation. Fear prevents them from creating an exit strategy and then implementing it.

The Time Factor

Many professionals make the mistake of believing that it is too early to make plans for retirement. These misconceptions can be costly, particularly for business owners. Owners often believe it will take no time at all to sell their businesses, which causes them to walk into a business brokerage and announce that they want to sell their businesses immediately. This is not a realistic or financially savvy way to handle the sale of a business. It takes time to create a strategic game plan. Owners need time to meet with a team of professional advisors, including accountants, business improvement specialists, business brokers, lawyers and financial planners, to get the business ready for sale, find a buyer and successfully sell the business.

Procrastination

Typically, business owners, professionals, and executives do not want to confront their concerns and fears about retirement. This can cause them to procrastinate and come up with excuses as to why they are yet to make retirement plans. If you find yourself making excuses as to why you haven’t yet made any plans for retirement it is time to face reality. Transitioning into retirement does not have to be an intimidating or negative time in your life. It can actually be fun, rewarding and exciting time. All you need to do is ensure that you have planned ahead. That way, you can tackle the process with confidence.
Transition Planning Australia has an array of resources at available that will help you start thinking about change and transition. With our help we can make sure you are prepared for retirement and expose you to a new way of thinking about life after work.

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