Why Don’t Rich People Just Retire? Experts Explain
Written by
Cindy Lamothe
Edited by
Cory Dudak
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You’d think having millions in the bank would be the ultimate cue to kick back, sip something cold by the beach, and finally stop checking your email. But oddly enough, many rich people do the exact opposite –they keep working. Sometimes harder than ever. In fact, Business Insider recently reported there are many millionaires working even into their 80s.
So what gives? Why don’t the ultra-wealthy just call it quits and ride off into a golden sunset of early retirement?
“The thing that surprises most people is that having money rarely makes someone want to stop working — it usually does the opposite,” said Andrew Lokenauth, money expert and owner of BeFluentInFinance with experience working with high-net-worth clients.
Here are some of the surprising reasons why money doesn’t always equal a permanent vacation.
The Motivation Rarely Has to Do With Money–It’s About Purpose, Momentum, and Identity
Chris Heerlein, CEO of REAP Financial, works with many high-net-worth clients who could walk away tomorrow, yet choose to stay deeply involved in their businesses or careers.
“One of my clients built and sold a company in his early 50s and had more than enough to retire. But three months into retirement, he told me it felt like he lost his rhythm,” Heerlein said.
The client wasn’t bored; he just missed having something meaningful to push toward. Now, he consults part time, not for the paycheck, but to keep solving problems, mentoring younger founders and staying mentally sharp.
Lokenauth similarly agreed, adding, “[They] love the game, the challenge, the thrill of building something. Money’s just how we keep score.”
Wealth Creates More Opportunities That Are Hard To Walk Away From
Here’s something most people don’t realize, said Lokenauth — wealth often creates more opportunities that are hard to walk away from.
Last March, he had the chance to invest in an exciting startup because of his network and expertise. “Sure, I could’ve been sipping margaritas on a beach instead of doing due diligence, but I’d have missed out on both the intellectual challenge and the potential returns.”
Status and Identity Play a Huge Role, Too
Lokenauth sees this with many of his clients. When you’re known as the person who builds successful companies or makes smart investments, he said that becomes part of who you are.
“It’s not about ego — ok, maybe a little. It’s about maintaining the relationships and influence you’ve built over years,” Lokenauth noted.
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