Burned Out at Work but Can't Yet Retire? Here's What to Do.

Key Points

• It can be hard to power through burnout, especially if you've been working a long time and are ready to retire.

• Assess your savings and spending needs to see if there's any flexibility.

• Consider a shift to a job that may be a better fit.

• The $23,760 Social Security bonus most retirees completely overlook ›

At some point in your career, you may find yourself struggling with burnout. A 2024 report by Boston Consulting Group found that most workers eventually experience burnout at work. But what if you're experiencing burnout at a time when you'd like to retire but can't make the leap just yet due to financial constraints?

Vanguard's most recent report on 401(k) data shows that workers ages 55 to 64 have a median savings balance of $95,642. Even if your nest egg is in better shape, it may not be enough money for you to retire on.

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But that doesn't mean struggling at work for a few more years is your only option. You may have some other avenues to explore.

Assess your savings and spending needs

Let's imagine you're sitting on $300,000 in savings that you expect to withdraw from at a rate of 4% per year. That's an annual income of $12,000 and a monthly income of $1,000.

Let's also assume you're old enough to claim Social Security, but not old enough to collect your complete monthly benefit without a reduction, leaving you with $1,800 a month if you were to file today. Combined with funds from your savings, you'd be looking at a monthly income of $2,800.

That may not be enough money to cover your expenses as they stand today. But with changes, you may have more leeway. Those changes could involve living very frugally, unloading some of your current expenses, and working part-time to boost your monthly income beyond $2,800.

Going this route could be your ticket to escaping a job or career that's messing with your mental health. And while your preference may, at this stage of life, be to not work at all, you may find that working two days a week at a fairly easy job is far better than hammering away at your current full-time role without any reprieve.

See if a career shift is possible

It's not an easy thing to switch careers later in life. But is it possible? Absolutely.

A career shift might mean taking a lower salary. But it might also mean spending your days doing something meaningful that you don't utterly hate.

And if that keeps you in the workforce a few extra years, it could spell the difference between having to claim Social Security early for reduced benefits versus getting more money out of the program each month in retirement. It could also mean letting your nest egg grow a bit more before needing to tap it.

Talk to your employer

If you're a valued employee at your company and you're experiencing burnout, it's worth a conversation with your manager and HR department. Together, you may be able to find solutions that make your job more bearable so you're able to stay on board a few more years.

That could mean reassigning some of your tasks to other people to alleviate some pressure, or allowing you to make a lateral move within the company that's less stressful and burdensome. It's worth having conversations before assuming you truly have no options left.

Burnout is a tough thing at any age. But it can be particularly difficult later on in your career when you're close to retirement but not quite there yet. If you're experiencing serious burnout, don't just resign yourself to it. Instead, explore your options so you're able to improve your outlook and mental health without putting your financial security at risk.

The $23,760 Social Security bonus most retirees completely overlook

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