Successful Retirement, According to Psychology

It’s happening now. We’re in the midst of the long-predicted expansion of the 65-and-older population. Due to a combination of baby boomers reaching retirement age and an increase in life expectancies, the number of adults aged 65 or older is projected to more than double over the next several decades and represent over 20 percent of the population by 2050.

According to the American Association of Retired Persons (AARP), every day, 10,000 people turn 65 in the United States. Over 4 million reach the traditional retirement age each year. For many, retirement is a satisfying, meaningful, and enjoyable experience. Alas, this is not true for everybody. Taylor (2024), in one of the few academic books on retirement (in contrast to the abundance of self-help trade books), concludes that up to a third of people who retire find the transition either stressful or notice a decline in their well-being. A disturbing 10 to 25 percent experience difficulties in adjusting to retirement, including mental health complications.

Are there guidelines to help us psychologically prepare for retirement? There certainly are, although most people don’t know of their existence. Instead, many of us rely on marketers to shape our expectations for a “good retirement”; not surprisingly, they tell us that taking things easy and spending money (e.g., cruises and travel) are essentials. These might be good suggestions for some, but certainly not for all retirees. They also conflict with the growing consensus in the field of psychology that successful retirement adheres to three recommendations.

Recommendation One: Pre-Retirement Planning. Even a cursory search about retirement planning on the internet will result in thousands of hits for financial planning, including tax considerations and maximizing savings. Information about healthcare in retirement is likewise abundant (e.g., recommendations for cancer screenings, hearing exams, immunization schedules, etc.). In sum, we have ample information about financial and healthcare planning as we age, but psychology informs us that we need more than this. We must supplement them with lifestyle planning.

Lifestyle planning—thinking about and arranging post-retirement activities, considering new roles and interests, working on our identity and purpose, and preparing our most important relationships for this change—is as essential for a satisfying retirement as our finances and healthcare needs. In their book The Couple’s Retirement Puzzle (2014), Taylor and Mintzer urge readers to begin strategizing with romantic partners long before retirement begins how they will balance time together as well as time apart.

The ideal time to start preparing for retirement is five to seven years before the event occurs.

Recommendation Two: Adjusting to Retirement. After a several-month retirement honeymoon period, many begin to feel disenchantment. The initial promise of an unending vacation quickly sours. Boredom and meaninglessness begin to surface. Retirees begin to feel irrelevant. The big questions become “Who am I now?” and “What do I do with my time?”

Other stressors may take up time, money, and energy, thus complicating the retirement process. Common stressors include health issues, a partner deciding they want to move on, or sadness about the death of someone close. We may still be financially responsible for children as well as caring for elderly relatives. A convincing body of research suggests that those who are forced into retirement (e.g., due to health issues or layoffs) are particularly likely to experience mental-health repercussions.

Successful adjustment to retirement is not a singular event, but rather a process that can last years. A good retirement consists of managing stressors, minimizing distress, having frequent positive experiences, living with a sense of purpose and by one’s values, and continuing to make a difference. In short, retirement is a time for achieving one’s ultimate potential.

Recommendation Three: Positive Aging. Retirement can last more than 30 years, as a greater number of adults are living into their eighth decade and beyond. Inevitably, the challenges of aging arise. Grief, sadness, and disorientation may occur after a partner or dear friend dies. It’s not only physical and cognitive issues we have to deal with; we may find people treat us differently, too. Maddeningly, societal institutions have not prepared for the presence of an older population.

A comprehensive retirement process includes preparing for the best quality of life as we age. This includes active engagement with life, maintenance of high levels of physical and cognitive functioning, adjusting to limitations, and finding ways to retain autonomy, fulfillment, and a sense of purpose. It also means learning to ask for help, which for many is far from easy.

Conclusion

An ideal retirement would begin with pre-retirement planning, starting a minimum of five years before the big event. However, many folks simply do not have this opportunity. There is good news, though: Myriad supports are available, including professional guidance and self-help approaches. These include working on acceptance, forgiveness, stress management, gratitude, meaning and purpose, living a value-directed life, coping with loneliness, leaving a legacy, and building resilience. Psychology gives us much-needed directives for a “good retirement” that are just as necessary as financial and healthcare considerations.