Why Is It So Hard to Retire?

27 June 2023
30 min listen


Observations of financial advisor decision-making and behavior have revealed an interesting pattern: as advisors get closer to retirement, their desire to retire decreases. This can have major negative consequences for teams, especially those that were created to facilitate the transition of clients from the retiring advisor to a new provider.

Scott and Ken explain why emotional experiences cause retiring advisors to feel both positive rewards and painful losses when they think about retirement. The discussion focuses on two solutions to the “stalled” retirement problem: 

1. Retiring advisors are taught to actively plan for the next stage of their lives and to see retirement as the beginning of an interesting new stage. 

2. New providers are encouraged to set clear boundaries about the retiring advisor’s exit date. 

The goal is to help ensure that the emotional challenges do not interrupt the smooth transition of clients to the new advisor.

The information contained herein reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this production. AllianceBernstein L.P. makes no representation or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication. This video segment is for informational purposes only and does not constitute investment advice. AllianceBernstein L.P. does not provide tax, legal or accounting advice. It does not take an investor's personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AB or its affiliates. References to specific securities are presented solely in the context of industry analysis and are not to be considered recommendations by AB. AB and its affiliates may have positions in, and may affect transactions in, the markets, industry sectors, and companies described herein.

About the Authors