For Some People, Working From Home Sped Up Their Decision to Retire
In Ms Janochoski’s case, “retirement looked good” after all those months of working from home, she said. “I wasn’t going to go until April, when my stock options vested,” she added. “So I chose the end of May and we went through the numbers. It made sense.
Jesse Coffee, a wealth advisor at True Private Wealth Advisers, said that before the pandemic, it was typically clients around 62 who entered pre-retirement talks with him. In the past year, that age has dropped to 54 or 55, he said.
“People have realized what is really important,” he said. “If you just want to go out and hike it doesn’t cost a lot of money. If my lifestyle doesn’t need that much money, maybe I can move to a cheaper location, have low cost hobbies, and retire earlier. That and frankly the market has been tremendous for the past 10 years. “
The job of an advisor is, of course, to do the math as to whether retirement is even possible and what it may look like. But leaving a career, especially for people who have grown in a company doing a job they love, is not an easy decision to make. Working from home during the pandemic gave some people a taste of what retirement might look like, something they wouldn’t have had had they continued to go to the office or travel for work.
“It allowed them to reset and take a step back,” Mr. Leverty said.
He said there is no doubt that early retirement will reduce wealth, but it is a trade-off for what could be more time – spending with family, exploring pursuits like charity work or pursue new interests.
A life-changing event four years ago prompted Mark Nagel to think about retiring as soon as possible. When he slipped on the ice and stretched a muscle, what appeared to be a minor injury would have resulted in the amputation of one of his legs.
“Early retirement became a requirement at that point,” said Nagel, 55. “You never know when something is going to happen. So why wait until next year?
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