Planning your retirement after the sale: financial and psychological aspects
Introduction
After years of building and developing your business, the sale represents far more than a simple financial transaction. It's a major life transition that raises two essential questions: how to manage the capital obtained and how to build your new daily life without the business that has structured your life for decades?
Retirement planning after the sale requires meticulous preparation on two fronts. The financial aspect requires defining your real needs, protecting and growing your capital, and optimising your pension provision. The psychological aspect, often underestimated, involves anticipating the loss of professional identity and structuring a new life project.
Many entrepreneurs discover the challenges of this transition too late. Some regret financial decisions made in haste, others find themselves disoriented by the void left by the business. As discussed in our article on the emotional dimension of selling, separating from your business is a complex process that deserves thorough preparation.
This guide supports you through this dual preparation, with practical advice, testimonials from entrepreneurs and a practical checklist to approach your life after the sale with peace of mind.
📌 Summary (TL;DR)
Retirement after selling a business requires dual preparation. Financially: define your real needs, diversify your capital and optimise your pension provision. Psychologically: anticipate the loss of identity, structure a new daily life and manage the transition period.
Advance planning, ideally several months before the sale, allows you to approach this new stage of life with peace of mind and transform the sale into an opportunity for fulfilment.
📚 Table of contents
The financial aspect: managing the sale proceeds
The sale of your business generates significant capital that must be managed methodically. This sum often represents the bulk of your assets and must fund 20 to 30 years of retirement.
In Switzerland, the taxation of the sale varies according to the legal structure and canton. Advance tax planning allows you to optimise the net gain. But beyond the tax aspect, the central question remains: how to transform this capital into sustainable income?
Structured management requires three steps: define your real needs, diversify your assets, and articulate the sale proceeds with your existing pension provision. Without a clear strategy, the risk of squandering this capital or making emotional decisions is real.
Define your real financial needs
Before investing the sale proceeds, calculate precisely your annual income needs. Start from your current lifestyle: housing, food, transport, leisure, insurance.
Add specific projects: travel, renovations, financial support for children. Also anticipate healthcare costs, which increase with age. In Switzerland, count on between 70% and 80% of your current income to maintain your standard of living.
Project these needs over 25 to 30 years, incorporating inflation (approximately 1-2% per year). This quantified basis allows you to determine the necessary return on your investments and avoid drawing too quickly on your capital. An independent financial adviser can help you build this realistic forecast budget.
Diversify and protect your capital
Diversification is the golden rule for protecting your sale proceeds. Avoid concentrating your assets in a single type of asset or sector.
Spread your capital across several asset classes: rental property (stability), bonds (security), shares (moderate growth), cash (flexibility). The investment horizon must correspond to your age and risk tolerance.
Beware of common pitfalls: reinvesting heavily in a new business out of nostalgia, yielding to overly risky investments promising high returns, or lending money to relatives without guarantees. Get support from independent financial advisers who don't receive commissions on products sold. Their objective must be your interest, not their remuneration.
Optimise your pension provision and succession
The sale proceeds are added to your Swiss pension pillars: AHV (1st pillar), BVG (2nd pillar), and possibly 3rd pillar. Coordinate these income sources to optimise your taxation in retirement.
Also plan your succession. In Switzerland, inheritance law imposes statutory portions for your descendants and spouse. If you wish to organise the transfer of your assets differently, several tools exist: lifetime gift, will, inheritance contract.
Consult a notary or pension adviser to structure your succession according to your wishes, whilst respecting the legal framework. The Leez partner network includes experts specialising in these matters. Anticipating these aspects avoids family conflicts and guarantees a smooth transfer of your assets.
The psychological aspect: preparing for life after the business
Beyond the figures, the sale of your business marks a profound identity break. For decades, you were "the boss", "the entrepreneur", "the founder". Your business structured your daily life, your social status, your network.
This transition to retirement after sale is often underestimated. Many entrepreneurs focus on financial aspects and neglect the emotional dimension. Yet the feeling of emptiness, loss of bearings, and identity questioning are frequent realities.
As discussed in our article on the emotional dimension of selling, "letting go of your baby" is a process comparable to bereavement. Anticipating this psychological phase during the sale process allows you to navigate it better.
Anticipate the void and loss of identity
The first months after the sale are often destabilising. Waking up without a busy diary, the absence of urgent decisions, the loss of contact with your colleagues: this void can generate anxiety and questioning.
"Who am I without my business?" is a frequent question. Your professional identity has been central for years. Retirement forces you to redefine your role and value differently.
Concrete example: a 62-year-old Geneva entrepreneur, after selling his industrial SME, went through six months of depression. He felt useless, without purpose. It was by joining a mentoring association for young entrepreneurs that he found meaning in his daily life again. Anticipating this phase allows you to prepare projects and not suffer this transition brutally.
Build a new structured daily life
To succeed in your life after sale, create a new routine and set yourself goals. Retirement doesn't mean inactivity, but the freedom to choose your commitments.
Explore several avenues: long-term travel, resuming studies or training, volunteering in associations, mentoring young entrepreneurs, hobbies neglected during your active years (music, sport, crafts).
The important thing is to maintain regular social interactions and feel useful. Joining a board of directors, participating in retired entrepreneur networks, or investing in community projects are concrete options. Plan these activities before the sale to avoid the post-sale void. A new project gives meaning to this new phase of life.
Manage the post-sale transition period
The contractualised support period for the buyer offers a smooth transition. You remain temporarily involved, facilitate the transfer of knowledge, and maintain a link with your business.
This phase, detailed in our article on your post-sale role, generally lasts 3 to 12 months. It also provides psychological reassurance: you don't leave your business abruptly.
But be careful: set clear boundaries. Your role is to support, not to manage. Avoid interfering in the buyer's decisions. This period must be a bridge, not an indefinite extension. Knowing when to leave is essential to succeed in your transition to retirement and allow the buyer to fully assume their responsibilities.
Testimonials and feedback
Pierre, 64 years old, Vaud: "I sold my IT services company in 2021. Financially, I was ready. Psychologically, much less so. The first six months were difficult. I eventually joined a mentoring programme and invested in rental property. Today, I travel four months a year and advise three startups. My advice: prepare your exit mentally, not just financially."
Marie, 59 years old, Geneva: "I made the mistake of reinvesting 40% of the sale proceeds in a new business. Too risky at my age. I lost part of that capital. Today, I favour diversification and security. Get support from independent experts from the start."
Checklist: prepare your retirement before the sale
Anticipate these points before the sale to facilitate your transition:
Consult an independent financial adviser to define your wealth strategy
Calculate your annual income needs over 25-30 years
Plan your succession with a notary (will, gift)
Identify concrete personal projects (travel, volunteering, mentoring)
Discuss your retirement plans with your family
Prepare psychologically for the transition (coaching, entrepreneur groups)
Structure the post-sale support period with the buyer
Diversify your investments to reduce risks
Optimise the taxation of the sale 5 years in advance
Join retired entrepreneur networks to maintain social connections
The sale of your business marks the beginning of a new phase of life that deserves as much preparation as the transaction itself. Financially, define your real needs, diversify your capital and optimise your pension provision to secure your future. Psychologically, anticipate the identity transition and build a new structured daily life even before signing.
This dual planning is not a luxury: it's a necessity to approach your retirement with peace of mind and avoid regrets or post-sale difficulties. The emotional dimension of this stage is as important as the financial aspects.
Are you considering selling your business and wish to prepare for this transition in the best conditions? Estimate the value of your business free of charge and access our network of transmission experts to support you through this decisive stage.
