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Lawyers spend their careers solving complex problems, but when it comes to their own retirement planning, many find themselves unprepared. The high demands of practice, unpredictable income, and long working hours often leave little time to focus on the future. The result? Many attorneys delay critical planning decisions until it’s too late — a mistake that can cost them financial security and peace of mind.
A recent analysis highlights five major retirement planning mistakes that lawyers frequently make, along with concrete steps to avoid them. Understanding these pitfalls — and taking action now — can make the difference between a stressful retirement and one that provides freedom and stability.
1. Putting Off Retirement Planning
Many lawyers assume retirement planning can wait until they reach partnership, finish paying off student loans, or hit a certain income level. This is a dangerous mindset. The later you start, the harder it is to catch up, because you lose the benefit of compound growth — one of the most powerful wealth-building tools available.
Fix: Start early and build a plan, even if you can contribute only modest amounts at first. Define your goals — at what age you want to retire, what lifestyle you expect, where you plan to live — and work backward to calculate the savings needed. Consider using automatic contributions to a 401(k) or IRA to build discipline. A written plan with milestones gives clarity and keeps you accountable.
2. Underestimating Longevity and Rising Costs
Many lawyers assume retirement will last 15 or 20 years, but with life expectancy rising, it’s increasingly common to spend 25-30 years in retirement. If you plan for too short a time horizon, you risk outliving your savings — a problem known as “longevity risk.”
Fix: Build your plan assuming you’ll live longer than average. Financial planners often recommend planning for at least age 90, especially for healthy professionals. Incorporate inflation estimates and factor in higher medical costs as you age. A conservative plan creates a safety margin and reduces the likelihood of running out of funds.
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3. Failing to Plan for Taxes and Withdrawal Strategies
Taxes don’t stop when your career does. In fact, withdrawing from retirement accounts without a strategy can push you into higher tax brackets or trigger penalties. Many lawyers focus only on saving, not on how they’ll eventually take distributions.
Fix: Work with a tax-savvy financial planner to create a tax-efficient withdrawal plan. This may involve balancing withdrawals between taxable accounts, tax-deferred accounts (traditional IRAs, 401(k)s), and tax-free accounts (Roth IRAs) to minimize your lifetime tax burden. Also, plan for required minimum distributions (RMDs) and consider converting some funds to Roth accounts before retirement to reduce future tax liability.
4. Ignoring Health Care and Lifestyle Costs
Even well-funded retirement plans can be derailed by unexpected medical bills or a mismatch between income and lifestyle expectations. Lawyers often underestimate costs like long-term care, health insurance premiums, and lifestyle upgrades (travel, second homes, hobbies) that tend to increase after leaving practice.
Fix: Take a realistic inventory of what your retirement lifestyle will cost. Research Medicare coverage options and supplemental plans, and consider long-term care insurance while you are still relatively young and healthy. Budget for travel, leisure, and housing changes — and be honest about what you can afford without compromising your long-term security.
5. Having the Wrong Investment Mix
Investment mistakes can be costly in retirement planning. Some lawyers avoid risk altogether, sitting on too much cash or overly conservative bonds, which may not keep up with inflation. Others swing the opposite way, staying heavily invested in volatile equities too close to retirement and risking large losses at the worst possible time.
Fix: Aim for a diversified portfolio tailored to your risk tolerance, time horizon, and retirement goals. Gradually adjust your allocation as you get closer to retirement, reducing exposure to high-risk assets but keeping enough growth potential to protect against inflation. Rebalance regularly to stay aligned with your plan.
Why Lawyers Are Especially Vulnerable
Lawyers often work longer than other professionals, partly due to the prestige of the profession and partly due to financial pressure. This can create a false sense that there’s always more time to plan. In addition, irregular income, high student debt, and billing demands make it tempting to delay contributions or ignore investment planning.
But the legal profession also offers high earning potential — which means that with discipline, lawyers are well-positioned to fund a comfortable retirement if they take action early.
The Bottom Line
Retirement planning is about more than just saving money — it’s about creating a strategy that accounts for your future needs, tax consequences, and market risks. The earlier lawyers start, the more flexibility they’ll have to adjust their plans, recover from market downturns, and take advantage of compounding returns.
If you’re an attorney, the time to start is now. Audit your current savings, review your investment mix, and create a written plan with clear targets. Engage a financial advisor who understands the unique challenges of legal professionals. A well-structured retirement strategy will give you peace of mind — and ensure you can enjoy life after practice on your own terms.
Planning for retirement is just one part of building a secure and fulfilling legal career. If you’re looking to make your next career move or find a role that allows you to meet your financial and professional goals, visit LawCrossing. LawCrossing has the largest collection of legal jobs in the country, giving you exclusive access to opportunities that can help you maximize your income, grow your skills, and build the future you want — both before and after retirement.
