For CEOs, retirement is the ultimate performance review—and 60% are failing it

**The High-Stakes Retirement Gamble: 60% of CEOs Fail to Plan for Success**

When it comes to planning for retirement, most people assume it's a straightforward process – you've worked hard, saved enough, and now it's time to enjoy the fruits of your labor. But for CEOs, the transition from the boardroom to the rocking chair can be a daunting and often disastrous experience. According to a recent study, a staggering 60% of CEOs fail to plan for a successful retirement, leaving them feeling unfulfilled, lost, and even fearful about their future.

Background & Context

As the business landscape continues to evolve, companies are increasingly looking to experienced leaders to take on high-profile roles during times of crisis. This trend has led to a growing number of CEOs being hired out of retirement, often in their 60s and 70s. While this may seem like a win-win for both the company and the CEO, the reality is that many of these leaders are not prepared for the significant changes that come with retirement.

Research has shown that CEOs, like many other professionals, underestimate the emotional upheaval that comes with transitioning from a demanding career to a more relaxed lifestyle. Without a clear plan, they can find themselves feeling lost, without a sense of purpose, and struggling to adapt to their new circumstances.

Key Details

A recent study by Boston Consulting Group found that only 40% of CEOs felt satisfied with their transition from CEO to retiree in the first year after making the move. This lack of preparedness can lead to a range of problems, from feelings of boredom and disengagement to anxiety and depression. According to Christine Barton, leader of BCG's North America CEO Advisory practice, "The decision to get a new CEO job really motivated by value creation where you know a unique skill that you bring, or is it really more fear or vanity?"

One CEO who has experienced this firsthand is Mary Dillon, former CEO of Ulta Beauty. In a recent interview, she revealed that when she came out of retirement to lead Foot Locker in her early 60s, she didn't realize how much she would miss having one big thing to focus on and how much she would miss leading a retail company.

What Experts Say

According to Barton, having an executive coach is no longer enough to prepare CEOs for retirement. Instead, there is a growing niche within the CEO coaching world specifically tailored to helping executives prepare for active retirement and build their legacy. The survey of former CEOs of companies with at least $1 billion in revenue found that 3 to 4 meaningful activities, such as serving on a board, being an advisor, or teaching, were the sweet spot where one can both still feel needed and useful but not overprogrammed.

Self-awareness is key, says Barton. "The portfolio career can be incredibly exciting, but it has to be intentional, and you have to do real self-reflection on whether or not you're at that stage." This means taking the time to assess one's strengths, weaknesses, and interests, and developing a clear plan for how to use one's skills and experience in retirement.

Key Takeaways

• 60% of CEOs fail to plan for a successful retirement, leaving them feeling unfulfilled and lost.
• CEOs underestimate the emotional upheaval that comes with transitioning from a demanding career to a more relaxed lifestyle.
• Having an executive coach is no longer enough to prepare CEOs for retirement; a more specialized approach is needed.
• 3 to 4 meaningful activities are the sweet spot for staying engaged and useful in retirement.

What This Means For You

For everyday readers, the implications of this study are clear: retirement planning is not just about saving enough money; it's about creating a clear plan for how to use one's skills and experience in the years ahead. By taking the time to assess one's strengths, weaknesses, and interests, and developing a clear plan for how to stay engaged and useful, individuals can avoid the pitfalls of unfulfilling retirement and create a more satisfying and meaningful life after work.

So, what can you do to prepare for a successful retirement? Start by taking an honest look at your strengths, weaknesses, and interests. Ask yourself what you want to achieve in retirement, and what kind of activities will help you stay engaged and fulfilled. With a clear plan in place, you can avoid the high-stakes gamble of retirement and create a more satisfying and meaningful life after work.