You have been successful in your legal career and are now at the point where you have been thinking about the next phase of your life.  For most Canadians, a retirement plan is considered to be the same as a financial plan.  However, there are some non-financial issues that you should consider as you clarify your retirement plans.

First, the good news…there are a lot of things to look forward to after you leave a full-time law practice...  

• Retirement can be a time when you can expand your mind, not just to other areas of law but also to other disciplines if you feel so inclined.  There is often a desire among high performers to remain productive for as long as possible.
• You have the opportunity to do something meaningful or “self-actualizing”. Maybe Maslow had it right when he talked about the hierarchy of needs.  This new life phase can give you the time and the resources to reach some of those life-long goals.
• More time to do activities that you may have put off.  You have been busy practicing law, working countless hours and taking time away from your own ‘free’ time.  Even if you stay engaged in your practice after “retirement”, you can still focus your time on finally doing the kinds of things you want to do. Not only that, but your life is no longer portioned into six minute increments!
• The motivation to create life balance.  This is generally harder for men than it is for women. If you redefine what retirement means to you, you will find it easier to find a balance between ‘work’ and ‘leisure’.  An issue that many in the legal profession face is putting 150% effort into work and then 150% effort into leisure.  A better balance between ‘work’ and ‘leisure’ tends to work more effectively for high performers.
• The ability to continue to generate an income, on your own terms.  For most lawyers, this will be more of an emotional need than a financial one.  Whatever your motivation, this life stage can give you opportunities to use your expertise, experience or initiative to create new sources of income.  This life stage can enable you to turn an avocation into a vocation.
• A chance to refocus on your mental or physical health. There are times when you find yourself so busy with the demands of your practice that you have neglected either your mental or physical health.  Retirement is a time to take a fresh look at healthy aging issues that will help you enjoy a long “second life”.Time to make a difference to others.  Generally, the older we get the more altruistic we become.  This phase of life can provide you with the opportunity to get involved in your community, with your family or other philanthropic or volunteer pursuits.
  
  But retirement does have some challenges for lawyers and other professionals…
  You will likely change over time as you adjust to a new lifestyle.  In fact, most retirees ultimately adapt to their new circumstance.  Some seek out new challenges while others simply accept their circumstances and find ways to “fill in the time”.  For a lawyer who has been in a high-performing profession for many years, it is even more difficult to walk away from mental challenges than for other professions.  That may explain why so many seek out other challenges when they leave their practices.

Here are the most common reasons why retirement may not initially work well for high performers:

• Retirement has emotional challenges. They did not consider some of the emotional challenges that life away from the practice can present, including relationship issues, use of free time and both physiological and psychological changes that are part of the aging process.  Being engaged in a practice can shelter you from some of the day- to-day issues that become your life in retirement; in fact, the workplace can actually undo some of the negatives that come from a leisurely retirement—particularly when it comes to health.
• Lack of structure in retirement.  There is an assumption that life will just happen and lack of structure is a good thing.  Remember that you are coming from a highly structured environment.  Whether you like it or not, you have most likely internalized the need for that structure and will find it stressful to live your life without incorporating structure into your retirement life.
• Lack of social network in retirement.  Often, a lawyer’s social network is connected with his or her profession. Those who disengage from the legal profession may lose many of the social contacts that they enjoyed. This is not as hard on those who remain in the same city as their former practice, but is a challenge for those who choose to retire in other parts of the world.
• Relationship challenges.  The dynamic between spouses or partners will likely change when one or both leave the workplace.  Issues such as loss of identity, boredom, household roles and hormonal issues can present challenges to retirement relationships.

Returning to work—Filling in the time
Prior to retirement, it is difficult to convince many Canadians that the prospect of a perpetual holiday may in fact not be everything that it appears to be.  In the midst of workplace stress, career challenges, client issues and other practice concerns, retirement looks attractive.  Once in retirement, however, many professionals find that the “paradox of leisure” drives them to look for opportunities to reengage in work.  When we work, leisure is a welcome break from our routine; weekends and vacations give us a chance to recharge and refocus.  However, when ‘leisure’ becomes the daily routine there is a natural tendency among high performers to use ‘work’ as the break.  Most studies on professionals returning to the workplace cite the need to fill in free time as the main driver, followed by such things as “not ready to retire” and maintaining professional and social contact.

Creating a retirement transition plan to take you into ‘retirement’

Step one: Clarify your vision for this next stage of life and identify the issues that you feel will be important to you in the future.  Share your vision with your spouse or partner and gain a general understanding of how they see their own transition.  Consider the opportunities that may be available to you to stay engaged in the legal profession or to pursue new opportunities.

Step two: Consider a retirement age that you will commit to.  This not only allows you to make plans in advance for your transition, but it also allows the firm to make plans for your change in status.  Some of the important considerations will be your own financial security as well as your willingness to continue with your present workloads or responsibilities.  At present, retirement age for lawyers in Canada is somewhere between 67 and 75 with a 70 being a common choice.  Some may want to take early retirement.  The caution here is that when you are in your fifties and early sixties, you are in your most productive years. Not only will this be a loss to your firm but you may miss professional opportunities and rewards as well.

Step three: Plan your transition phase.  You want an orderly transition not only for your own peace-of-mind but also for the benefit of your firm and your clients.  This can take as long as three to five years to complete, depending on the nature of your practice and the relationships that you have cultivated.   Financial compensation issues may also play a part in the length of time that you spend in the transition phase, both from your standpoint as well as the firm’s.
From a lifestyle perspective, you want to use this transition period to gradually move into your new life.  Some “practice” retirement and focus on understanding the kind of lifestyle they would like to lead.  This is often an easier way for professionals to transition into a life with different responsibilities and challenges than creating a sudden change.

Step four: Gain a clear understanding of your financial situation in retirement.  Engage a financial advisor who can counsel you on the many retirement issues that may affect you and your family in retirement.  Remember that “being rich” is not a retirement plan and that investment management is only part of the planning picture.  Issues such as estate planning, insurance protection and taxation issues may require specialized expertise. While you may be in a position to provide your own expertise to your retirement financial plan, you also want to free up as much of your time as possible to actually enjoy your retirement.

Step five: Be prepared to review your plan at least twice a year.  Retirement is not one long life phase and there will be many changes along the way that may cause you to adjust your plan.  Work with your advisor to ensure that your life issues and concerns are always reflected in your ongoing financial plan.  

Remember that it is important to have a clear picture of what you are retiring TO rather than what you are retiring FROM.