Personal coaching – also called life coaching – has become a burgeoning career field in the past few decades. It’s hard to get accurate statistics, but some sources say personal coaching (of all types) is a $4.5 billion industry with (as some report) at least 70,000 practitioners. The actual figures may be far higher.
Why hire a life coach? That’s a topic only you can answer, as each person’s experiences is unique. But with coaching growing rapidly, and with baby boomers turning 65 at the rate of about 1,000 per day, we think it was inevitable that some life coaches would see the need and re-brand themselves as “retirement coaches.” After all, retirement is a hot topic these days.
In this recent article from Kiplinger, reporter Brian O’Connell explains what a retirement coach does, and what he or she doesn’t do. (For example, just to be clear, a retirement coach doesn’t fill the role of financial adviser.) Ideally, says O’Connell, a trusted retirement coach can help bring purpose, clarity and contentment to your post-working years. But is this something you need? Let’s explore the topic further.
If You’re Seeking a Happier Retirement, Consider a Coach
Coaches, according to O’Connell, are now available to guide you through a happy retirement.
“It’s a fast-growing profession,” he writes. “The coaching sector has approximately 34,200 certified professionals across North America in 2024. That’s a 47 percent rise from 2019. Now, Americans who are planning to retire soon or have already done so have access to professional mentors, better known as retirement coaches.”
Focusing on the “Non-Financial Side of Retirement”
It’s no secret that when most people think about needing guidance in their retirement, they think about the financial particulars. And since coaches don’t focus on this major aspect of retirement, it’s worth asking: what’s the point of hiring one?
“If you’re still toiling away at your job, you may be surprised to learn that some of the biggest challenges in retirement are loneliness and a loss of purpose,” he explains. “A retirement coach can help you avoid wasting those first years of retirement floundering, trying to find new community and purpose. In turn, that can lead to better quality of life and health outcomes.”
(We’ve posted many articles on this topic here on the Blog, including this one from last fall.)
Coaches Guide Retirees Toward Creating a New Identity
“A retirement coach helps a person explore the non-financial aspects of retirement, such as purpose, identity, new activities, daily schedule, social connection, and volunteering,” says Kirsten Meneghello, CEO and a credentialed retirement coach at Illumination Coaching LLC in Portland, Oregon.
This, we suggest, might be especially helpful if you plan to retire early. “Many of those who retire in their 40s or even at 55 find that the day looms long when most of their friends are still working and unavailable,” O’Connell writes.
But even those who retire later in life often wrestle with this issue. As philosopher Wayne Dyer said decades ago, “When you are what you do, then when you don’t, you aren’t!” Many retirees find themselves having a tough time answering the question, “Now what?” This is where the right coach might be helpful.
A Retirement Coach Can’t Address Every Issue and Need
As mentioned, it’s important to recognize that retirement coaches have their limitations. For example, “Retirement coaches cannot and should not advise clients about their financial well-being or choices,” Meneghello says.
Coaches also need to be alert to possible mental health issues which they are unqualified and unprepared to address. “For instance,” Meneghello adds, “when a client is dealing with depression, trauma, or deeply-seated emotional issues, they should be referred to a therapist because that is outside the scope of coaching.”
Melissa Murphy Pavone, a New York-based certified financial planner and founder of Mindful Financial Planners, adds, “There’s increasing buzz around hiring a retirement coach. However, it’s important to differentiate the roles, skills, and fiduciary responsibilities of a retirement coach versus a financial planner.”
A Guide to Help Retirees Redefine Purpose, Build Connections
“Retirement coaching is gaining attention because retirement is no longer just about finances; it’s a life transition that includes redefining purpose, building social connections, and navigating identity changes,” Pavone says. “A coach can help retirees explore these non-financial aspects.”
The same is true for personal therapists and wellness counselors. “Therapists are focused on providing therapeutic mental health services, including counseling, diagnosis, and treatment plans,” says Jhanell Biggs, founder at Moro, a non-financial retirement lifestyle practice in New York City. “Retirement coaches bring a unique perspective to the aging process and are dedicated to assisting people in living their lives to the fullest.”
But Pavone is quick to add that a retirement coach should complement — not replace — financial planning or personal wellness therapy; all of these can ensure that a retiree’s lifestyle goals are sustainable. “Integrating multiple professionals can provide retirees with the comprehensive support they need for a fulfilling retirement,” Pavone says.
Be Cautious and Strategic in Hiring a Retirement Coach
O’Connell offers the following steps to take to make sure you’re partnering with a retirement coach who meets your particular needs. (These have been abridged for brevity and space.)
Set Proper Expectations. O’Connell says that the key to landing the right retirement coach is to set realistic expectations before anyone signs on the dotted line. “Start that vetting process by evaluating your retirement expectations, especially how you want to spend your time in your post-working years,” he writes. “The right retirement coach should be able to expand your retirement time and lifestyle needs and help create a portfolio filled with activities you want to prioritize in retirement.”
Hire a Professional. It’s easy to call yourself a “coach” these days, so make sure that yours is a trained professional. “You’ll want one credentialed by a coaching organization (like a Certified Professional Retirement Coach designation from the International Coaching Federation,” Meneghello says. “Ask a potential retirement advisor for client references or professional case studies.”
(O’Connell adds: “Check online for credentialled retirement coaches on Retirement Options or Noomii, which offer access to local professional retirement coaches.”)
Be Thorough. Once you have a short list of potential candidates, plan out your interview process to find the right fit. “Retirement coaching clients should expect to examine various aspects of their life and identify which areas they are satisfied with and want to improve or address in retirement,” Meneghello says. “Based on this information and some preliminary assessments, the coach will explain how they’ll work with the client to create a plan for their next life chapter.”
Budget Appropriately. This is a fixed-cost retirement budget item like any other, so make sure you have a specific (and realistic) picture of how much you expect to pay. Bear in mind that good coaches can be expensive. Biggs says, “Cost ranges vary based on the personalization level and the service length. Some coaches charge by the hour: $75-$250 per hour. Others charge based on packages, with three-month packages typically ranging from $2,500 to $6,000.”
Ask These Key Questions – and Watch Out for “Red Flags”
Biggs offers this list of pertinent questions (and red flags) to ask your retirement coach during the interview process. (These are included verbatim from O’Connell’s article.)
1. How have you helped other people plan for retirement? What are some success stories?
2. How do you work with individuals? What’s your process and coaching style?
3. Do you specialize in any particular areas of retirement planning, such as financial planning, health and wellness, or career transition?
4. Do you use any specific tools or methodologies?
Red flags
1. Watch out for someone vague and unwilling to provide details about their services.
2. Watch out for someone unwilling to provide information about their experience and qualifications.
3. Another red flag is a coach unwilling to personalize their services based on your goals.
Go With Your Gut and Know What to Expect
To conclude, O’Connell’s biggest piece of advice when looking to work with a retirement professional is: don’t overcomplicate the situation. “My best advice is to go with your gut,” Meneghello says. “If you feel comfortable with a prospective coach and they have proven experience in supporting clients through retirement transitions, then go with that coach.”
Ultimately, success between coach and client is going to be based on “effort and dedication” put into the partnership. “The coach acts as a guide and accountability partner, and the sessions should be fun and thought-provoking,” Biggs says. “This is an opportunity for the retiree to use those tools and resources to address their concerns within a safe and open space.”
For best results, according to O’Connell, understand that the goal is to achieve clarity and confidence about your retirement.
“During the sessions, expect to learn more about yourself, your interests, your passions, how you can build and sustain a community, and your personal development and mental and physical well-being,” Biggs adds. “At the end of the retirement coaching process, you should have a well-defined plan with actionable next steps to guide your next life chapter.”
Rajiv Nagaich – Your Retirement Planning Guide
The long-awaited book by Rajiv Nagaich, called Your Retirement: Dream or Disaster, has been released and is now available to the public. Retirement: Dream or Disaster joins Rajiv’s ground-breaking DVD series and workbook, Master Your Future, as a powerful planning tool in your retirement toolbox. As a friend of AgingOptions, we know you’ll want to get your copy and spread the word.
You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families – and you want to make sure it doesn’t happen to you – then this book is must-read.
Through stories, examples, and personal insights, Rajiv takes us along on his journey of expanding awareness about a problem that few are willing to talk about, yet it’s one that results in millions of Americans sleepwalking their way into their worst nightmares about aging. Rajiv lays bare the shortcomings of traditional retirement planning advice, exposes the biases many professionals have about what is best for older adults, and much more.
Rajiv then offers a solution: LifePlanning, his groundbreaking approach to retirement planning. Rajiv explains the essential planning steps and, most importantly, how to develop the framework for these elements to work in concert toward your most deeply held retirement goals.
Your retirement can be the exciting and fulfilling life you’ve always wanted it to be. Start by reading and sharing Rajiv’s important message. And remember, Age On, everyone!
(originally reported at www.kiplinger.com)