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Oracle of Omaha Warren Buffett, among the world’s greatest investors, plans to step down as CEO of Berkshire Hathaway (BRK.A, BRK.B) at age 94, after about six decades at the helm of the conglomerate. But he isn’t planning to sit at home alone in retirement. Everyday investors—always keen to emulate Buffett’s success in the markets—should also take a tip from his approach to retirement.
Key Takeaways
- Warren Buffett will step down as CEO of Berkshire Hathaway at the end of the year, after about 60 years at the helm.
- Buffett doesn’t plan to slow down too much. He said he will continue to go to the office, help with investment decisions, and manage his philanthropic projects.
- The legendary investor is a real-life example of what numerous studies have shown to be true: Remaining active and engaged in retirement is key to maintaining a healthy brain and body.
Buffett’s Retirement Plans
Buffett has acknowledged that he has begun to feel the effects of his advanced age, but he has no intention of ceasing activity. He told the Wall Street Journal that he plans to continue going into his office in Omaha.
“I’m not going to sit at home and watch soap operas,” he said. “My interests are still the same.”
“I will be useful here if there’s a panic in the market because I don’t get fearful when things go down in price or everybody else gets scared,” he added.
Buffett will also likely stay busy with his philanthropic projects. As a founder of The Giving Pledge, he has promised to give away 99% of his wealth to philanthropy during his lifetime or at the time of his death.
What You Can Learn About Retirement From Buffett
Numerous studies have linked health benefits to delaying retirement, including lowered risk of Alzheimer’s disease and of dying. A 2016 study found that healthy people who postponed retirement by one year had an 11% lower risk of dying from any cause. Those with health problems also lived longer if they postponed retirement.
Beyond his late retirement age, Buffett is also a role model for remaining active in later years. Studies have revealed the importance of staying mentally active for brain health. Individuals with training in reasoning and speed of processing, for example, tend to experience less mental decline over time.
A 2016 study found that staying busy as you age can help keep your brain sharp. Busyness was associated with better processing speed, working memory, episodic memory, reasoning, and crystallized knowledge.
Another study in 2019 found that older adults who interacted with people beyond family and close friends were more likely to have higher levels of physical activity, greater positive moods, and fewer negative feelings. Scientists concluded those benefits stemmed, in part, from the fact that people needed to leave the house to interact with other people, which meant they weren’t just staying sedentary at home.
For Buffett, remaining involved in investment decisions and continuing to go into the office instead of sitting at home could help him stay sharp as he ages.
The Bottom Line
Widely admired for his investment prowess, Buffett also offers a valuable lesson about retirement living. He plans to remain an active participant at Berkshire Hathaway, visiting the office and helping with investment decisions, while continuing his significant philanthropic efforts. In these ways, he is a role model for how people everywhere can remain active, engaged, and healthy in retirement.
