Ninety percent of retired CEOs are ultimately satisfied with their decision to step down — but only 40% felt that way during their first year of retirement, according to an Aug. 5 report from Boston Consulting Group.
The findings track with broader shifts Becker’s has covered in hospital and health system leadership. On the workforce side, Gen X employees are delaying their own retirements, a dynamic that could reshape succession timelines for the CEO role in the years ahead. A separate study on early retirement also found that leaving the workforce before traditional retirement age may be tied to faster cognitive decline, adding another data point to the broader conversation about when and how executives should step back.
Here are six things to know from the report:
1. BCG surveyed and interviewed more than 25 former CEOs for the report, each of whom had led companies with at least $1 billion in annual revenue. Researchers also spoke with Rick Smith, founder of the Onyx Network and author of the forthcoming book “Pretirement,” and Claudius Hildebrand, a CEO advisor at Spencer Stuart and author of “The Life Cycle of a CEO.”
The report frames the research around a rising rate of CEO departures across the S&P 500 over the past three years, driven in part by rapid technological change, market volatility and ongoing uncertainty.
2. The first year of retirement is the most difficult transition period, according to the survey. Executives reported prolonged feelings of disconnection, unease and self-doubt as they adjusted to fewer responsibilities, less structure and significantly more free time.
3. Most retired CEOs take a few months off at the outset, usually to reconnect with family, travel or pursue hobbies. Nearly all surveyed executives advised against extending that break too long, saying an extended absence of structure or goals became demoralizing over time.
4. Seventy-one percent of respondents cited wanting more time with family and loved ones as a strong motivator for retiring, while 69% pointed to giving back as a top reason for staying active afterward.
5. BCG recommends building a “portfolio” of professional and personal activities before stepping down rather than waiting until retirement begins. Of the CEOs surveyed, 80% took on nonprofit work, 80% moved into consulting or advisory roles, and more than two-thirds joined at least one corporate board.
6. Retired CEOs who took on three to four meaningful activities reported the highest satisfaction, while those with five or more said they felt overextended. Seventy-two percent of respondents cited keeping their minds sharp as a reason to stay engaged.
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
