The Truth About Retirement: The History, Psychology, and the Solution That Actually Works
Is retirement as we know it dead?
- Self-portrait, me at 64.5 years young
Retirement is sold as a finish line. Work hard. Save enough. Stop working. Enjoy life.
That story is incomplete—and for many people, it’s harmful.
That’s why I recently decided to create a new body of work addressing the massive fear, anxiety, and suffering we experience over money, work, and retirement. My premise is that as soon as we are willing to shift our mindset about all of this, the easier it is to reduce the struggle of being human.
Heck, it’s already hard enough down here. But the truth is, most of us beat the crap out of ourselves mentally, and it takes a terrible toll on our health and quality of life.
Here’s a short history of retirement in America
Retirement is not a reward. It is a major life transition built on systems and assumptions that no longer align with how long we live, how we work, or how we stay healthy and fulfilled. To understand why so many retirees struggle financially and emotionally, we have to look at where retirement came from, what it does to the human mind, and what actually works instead.
Modern retirement began in the 1930s. When the Social Security Administration was created in 1935, the United States’ life expectancy was about 61 years. Full retirement age was set at 65. In other words, retirement was never designed to last decades. Many people never collected benefits at all, and those who did often relied on them briefly.
After World War II, employer pensions expanded. Workers traded loyalty for guaranteed income. Careers were stable. Lifespans were shorter. The system worked—for a while.
Then pensions declined. The rise of the 401(k) shifted risk from companies to individuals. Most people were never taught how to manage long-term investing, market volatility, or the psychological stress of funding 20 to 30 years without earned income.
Social Security, which was never meant to be a primary source of income, became exactly that for millions of retirees. The system didn’t collapse. It quietly became outdated.
At the same time, the conversation about retirement focused almost entirely on money. What it ignored was something just as important: the human need for purpose. I call this the “inner game.” I developed five simple steps, a process, for anyone to shift their mindset to solve almost any problem.
A process for shifting your mindset
The Clarity Shift Method™ is what I use to teach and coach. It’s all about changing what we can and letting go of trying to control what we can’t.
Here are the five steps I teach for shifting your mindset:
Self-awareness. This includes a realistic view of your situational awareness. We all become a byproduct of the environment we live in. Become the observer of yourself. Learn to be authentic. No B.S.
Higher understanding. Step back. Take a deep breath. Pause when upset or frustrated. Change your perspective on any person, place, or thing that bothers you.
Introspection. Search within yourself to find clarity about your values, desires, needs, and the suffering that holds you back.
Focused intention. What do you want next, and what will it take to get it? Focus on one thing at a time. Be super intentional. See, feel, and believe as if you’re receiving what you asked for.
Transformation. It’s not a burning bush kind of transformation for most of us. It’s a gradual realization that day by day, you are enjoying your life and doing the best you can to maintain peace of mind. It’s a shift in awareness.
I know it’s real because I’ve been living this way, self-employed, loving my work, in a position to retire now that I’m almost 65. But I have no desire to “stop working.” That’s what retirement means, literally.
Here’s the truth about work
Work does more than provide a paycheck. It gives structure to the day, identity to the individual, social connection, and a sense of contribution. When work ends abruptly, those things often disappear overnight.
This is why retirement is not a steady emotional state. It unfolds in stages. Research and lived experience show a predictable pattern, clearly described by Dr. Riley Moynes.
Here’s a quick summary of his four stages that address the emotional aspects of retirement psychology.
Phase 1: The early phase feels like a vacation—freedom, novelty, relief. Eventually, that fades.
Phase 2: What often follows is loss: boredom, restlessness, identity erosion, and anxiety that catches people off guard.
Phase 3: Many then move into a trial-and-error phase, experimenting with activities, roles, or part-time work in search of meaning.
Phase 4: Those who thrive eventually reach reinvention, where purpose is rebuilt around something new.
Here’s the critical insight: many people never reach reinvention because they were taught the wrong goal.
Why shifting your mindset is the best place to start
The core problem with modern retirement thinking is the belief that leaving the workforce leads to fulfillment. Humans are not wired that way. People are wired to contribute. Purpose is not optional. Without it, mental and physical health decline—often faster than finances.
Instead of dwelling too much on the problems we face, let’s focus on a common-sense approach to improving your life and any semblance of retirement you choose to pursue. The real solution is not just saving more money or delaying retirement by a few years. The real solution is a mindset shift.
First, the old concept of retirement has to be discarded. Retirement should not mean stopping. It should mean shifting. The question is no longer “When do I stop working?” but “How do I want to contribute without burning out?” The goal is not leisure. The goal is engagement without exhaustion.
That shift requires honesty—something most people avoid. Retirement forces uncomfortable questions. Who am I without my title? What do I actually enjoy doing when no one is paying me? What drains me? What gives me energy? What do people naturally come to me for?
Pretending leads to empty busyness. Honesty leads to alignment.
How to thrive in life
Thriving later in life is not about age. It’s about design. People who do well intentionally build their days around a sense of purpose. That purpose usually sits at the intersection of their unique abilities, genuine interests, natural gifts, and activities that create value for others.
This does not require full-time work. It may look like mentoring, teaching, consulting, creative work, community leadership, service, or small, flexible businesses. What matters is contribution and structure, not the number of hours.
Money still matters, but in a way most people don’t think. Freedom doesn’t come from maximum spending. It comes from sustainability. People who thrive in later life tend to simplify. They reduce unnecessary expenses, step off the status treadmill, and design a lifestyle that fits their values. Living within your means is not about deprivation. It’s about control. Financial stress destroys freedom faster than aging ever will.
Age is a state of mind
The final piece is staying young—not in appearance, but in mind and body. Decades of longevity research point to the same conclusion: people who live longest don’t retire from life.
Communities studied by the Blue Zones Project don’t have a word for retirement. People remain active, socially connected, mentally engaged, and useful to others well into later life. They move daily, maintain relationships, contribute to their community, and wake up with a reason to get out of bed.
They don’t chase leisure. They live with purpose.
The retirement crisis is not just financial. It’s conceptual. We built systems for shorter lives and told people the goal was to stop. Longer lives demand something different. Identity must evolve.
Contribution must continue. Money must support life—not replace it.
The truth about retirement is uncomfortable but empowering. If you shift your mindset, get honest with yourself, and design a life around purpose, unique abilities, and sustainable living, retirement stops being a risk. It becomes a reinvention.
I’m an author, strategic coach, and mentor. Discover the power of the Clarity S.H.I.F.T. Method® for improving your career, small business, and life at www.CliffordJones.com.