Involuntarily Retired Clients May Need a Second Act

Financial advisors strive to help clients achieve their long-term financial goals—including planning for retirement. But as we’ve all seen in our practices, clients’ dreams of retirement don’t always go as planned. According to a 2023 survey by Edward Jones and data intelligence firm Morning Consult, a national sample of 200 financial advisors reported that 40% of their retired clients were forced into an early, unplanned retirement.

One prime reason involves health issues. According to a recent Federal Reserve study, 30% of American retirees cited health problems as a key reason for early retirement and another 17% said they retired early to care for family members. I see this play out in my own practice. Whether it’s a client’s health that is declining or that of a spouse or parent, health is a major determinant of retirement timing.

But job security also declines greatly with increasing age. Sometimes the decision to retire is made for the client by their employer through layoffs, reduced hours, role changes, or reorganizations. When faced with the choice of starting a new career or ending their work life sooner than anticipated, I often see clients choose early retirement.

When clients face unexpected challenges, it’s our job as financial advisors to guide them through course corrections to help them continue to pursue their financial goals. Lately, I’ve been having more conversations with my clients about whether working in retirement might be right for them—and I’m not alone. 

Unretirement. In the Edward Jones survey cited above, 94% of financial advisors have either discussed, or would like to discuss, whether and when retired clients should return to work—and not simply for monetary reasons. There are benefits to working beyond the paycheck: financial advisors reported discussing staying mentally active (99%), earning health insurance benefits (99%), and feeling a sense of purpose (97%).

Yet the idea of returning to work can be tough for some older clients to think about. When advising retiree clients to do so, advisors in our survey most commonly recommended embracing an open-minded approach (36%), networking for new opportunities (31%), and being willing to work for someone younger (30%). The advice I give is that although working in retirement might look different than it did at the peak of their careers, the right employment opportunity can help provide financial stability and a sense of purpose.

Expect the unexpected. Retirement looks different for everyone. To help decide whether to stay on the retirement track or get back on the work track after an early or unplanned retirement, we have to ask clients deep discovery questions to find out where health, family relationships, personal aspirations, and finances intersect. As we understand our clients better, we can offer strategies to remain resilient and flexible in retirement.

Overall, it’s important to prepare clients to navigate the unexpected with a holistic retirement strategy that not only takes into consideration their finances, but also their health, family, and purpose. By serving clients more completely through deep, personal relationships and a comprehensive approach and advice, we can help them prepare to retire at the time that’s right for them or navigate through a challenging time if the unexpected occurs.