ARCTIC OBITER

12 | ARCTIC OBITER
SUCCESSION PLANNING
Considerations for Happy Retirement
by John Starzynski, Peer Supporter, OLAP
WHAT DO WE KNOW FOR SURE? LAWYERS WON’T PRACTICE LAW FOREVER,
ALTHOUGH SOME EXPECT TO PRACTICE AS LONG AS THEY LIVE!
In today’s financial turmoil, many lawyers in sole practice are
afraid to even think of retirement. Like all good things,
retirement takes planning. There are many changes related
to retirement that have major impact on personal lifestyle,
professional responsibilities, family roles and relationships.
Many lawyers do not plan for the expected and predictable
change of retirement.
THE RISK FACTOR
Lawyers in sole practice or lawyers in small firms are least
likely to plan for retirement. The consequences of not having
a plan affect financial stability, mental health and
relationships. At OLAP, we see many lawyers who have
devoted their lives to law practice and have few outside
interests. These lawyers can be at risk for depression,
frustration and loss of meaning in their lives.
RETIREMENT AS A CAREER CHANGE
Retirement or semi-retirement is a major career change.
Some lawyers eagerly look forward to retirement while some
cannot imagine it. A major survey of lawyers and retirement
issues was conducted recently in Oregon by the Oregon
Attorney Assistance Program 1 . This is one of a few studies
that look at lawyers and retirement.
LAWYERS ENVISIONING RETIREMENT
Here are some interesting findings about lawyers views of
retirement from a study conducted by the Oregon Attorney
Assistance Program:
11% - 12% of those surveyed do not plan to ever retire
30% plan to continue practicing law part time after age 65
for sense of purpose and stimulation
11% plan to continue practicing law part time after age 65
primarily for financial reasons
40% plan to continue to practice law after age 70
71% envision retirement as a new chapter in life.
Where do you fit?
FINANCIAL CONCERNS
Financial concerns are a major part of retirement. Good
financial advice and starting early are essential. Younger
lawyers start out with a large student loan debt leaving fewer
years to accumulate savings and plan for career change or
retirement.
PERSONAL CONCERNS
Personal and professional relationships change with career
adjustments. It is important to acknowledge these changes
and plan to manage different roles and responsibilities.
Awareness of potential anxiety, depression and frustration
and support to deal with interpersonal changes will help.
CAREER ADJUSTMENT AND RETIREMENT CONCERNS
Findings in a study, ‚Purpose, Potential and Productivity in
Later Life,” 2 found that most people approaching retirement
have received no formal preparation. Most people know that
financial planning is important but fewer than 10% had any
information other than financial planning. A social portfolio
is as important as a financial portfolio to successful
retirement.
The Financial Portfolio includes assets, insurance and is built
over time, not overnight.
The Social Portfolio uses the same three concepts. Assets are
diversified interests and relationships. Insurance requires a
mix of individual and group activities. It is important to
build over time—start interests that you can expand upon so
there is not a sudden empty space when you don’t go to the
law firm any more.
Additional considerations that lawyers found important are:
1
Mike Long, Assisting Lawyers Plan for Retirement and Disability, In Sight Newsletter, Issue 63, Oregon Attorney Assistance Program, Sept 2006.
2
Gene D Cohen, Purpose, Potential and Productivity in Later Life: A 21 Century Retirement Study, The Atlantic Philanthropies, 2004