Time to Retire?

In the wake of President Joe Biden's decision to withdraw from the upcoming presidential campaign, the question of when to hang up one's hat is being deeply discussed across the nation. Ranked as the tenth-biggest stressor on the Holmes-Rahe Stress Inventory, the journey to retirement can be a psychological marathon, often requiring months or even years of preparation (Holmes-Rahe Stress Inventory, n.d.). This period of life is a frequent topic in psychotherapy sessions, as individuals grapple with the multifaceted challenges it presents.

Let’s delve into the key considerations for guiding your patients through this significant life transition.

Financial Readiness

The average retirement age in the U.S. is 62 for women and 64 for men, and financial preparedness is often the most salient factor. Social Security benefits can start at age 62, but full retirement age is 66 or 67, depending on the year of birth (Social Security Administration, n.d.). Medicare eligibility begins at age 65. The U.S. Bureau of Labor Statistics (BLS) reported that about 32 percent of people aged 65 to 74 were still in the labor force (U.S. Bureau of Labor Statistics, 2023).

Some patients are reluctant to talk to their therapists about financial matters while others are more forthcoming. There is a growing field of financial therapists specifically trained to combine elements of financial planning with therapeutic practices to address the emotional and psychological aspects of money management. Many financial therapists are certified by the Financial Therapy Association and are designated as CFT-I, certified financial therapist level 1.

Cognitive Decline

As we age, we inevitably lose some mental speed and ability. Can patients still perform their work-related responsibilities successfully? Neuropsychological testing can be valuable in this decision-making process. These tests assess cognitive functions such as memory, attention, and problem-solving abilities. By providing an objective measure of cognitive health, neuropsychological testing can help determine whether they can continue to perform effectively in their professional role or if it's time to consider retirement.

Research shows that approximately 10 to 20 percent of people over the age of 65 experience mild cognitive impairment (MCI), which is a noticeable decline in cognitive abilities that is greater than expected for a person's age but does not interfere significantly with daily life (National Institute on Aging, 2023). The prevalence of MCI increases with age, affecting up to 37 percent of people aged 85 and older (National Institute on Aging, 2023).

Dementia, a more severe form of cognitive decline that interferes with daily functioning, also becomes more common with age. About 10 percent of people aged 65 and older have Alzheimer's dementia. Approximately one-third of people aged 85 and older have Alzheimer's dementia (National Institute on Aging, 2023).

Grandparenthood

Grandparents often become key figures in their families, providing support, childcare, and wisdom. The U.S. Census Bureau’s American Community Survey 2020 showed that 2.6 million grandparents provide primary care for their grandchildren (U.S. Census Bureau, 2020).

On average, Americans become grandparents at around age 50 (AARP, 2019). However, with increasing life expectancy and changes in retirement age, many grandparents continue to work well into their 60s and 70s.

Physical and Mental Well-Being

If work is negatively impacting a patient’s health or preventing them from addressing health issues, retirement might be necessary to prioritize their well-being.

Maintaining a healthy lifestyle and managing stress are critical to optimal aging. Establishing healthy habits that patients can carry into this new phase of life is crucial. We can help emphasize the importance of regular physical activity, a balanced diet, and mental stimulation for healthy aging (National Institute on Aging, 2023).

Purpose and Meaning

Work often provides a sense of purpose as well as a daily routine. However, a lack of motivation can lead to decreased job performance and satisfaction, making retirement a viable option for regaining a sense of purpose. As patients consider retirement, they should reflect on what will give their life meaning and how they'll structure their time post-retirement. If they no longer find fulfillment or excitement in their work, retirement could offer an opportunity to explore new passions and interests.

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Support patients in finding local classes, workshops, or groups. Volunteering can be a great source of structure, connection, and meaning in the post-work years. Religiosity and spirituality often increase in importance as people age and in some studies have been linked to increased well-being (Psychology Today, n.d.).

Social Connections

Work is often a source of social interaction. Patients should consider how they'll maintain and build new social connections in retirement, as loneliness can be damaging to their health. Discuss the importance of social connections and help patients plan how to maintain previous and build new relationships in retirement. Maintaining a professional network can be beneficial. These connections can provide opportunities for part-time work, consulting, volunteering, or socializing.

Gradual Transition

Consider a phased retirement approach. This might involve reducing work hours gradually or taking on a consulting role. This can help ease the psychological transition and allow patients to test the waters of retirement. This approach can provide a smoother adjustment period as it gives patients time to explore new opportunities as work hours decline.

Mindset

Help your patients approach retirement not as an ending, but as the beginning of a new chapter in life. In earlier years, success might have been measured by career achievements and material wealth. In retirement, there is an opportunity to redefine what success means. Time and freedom are gifts that often accompany retirement.

As therapists, we have the privilege of guiding our patients through this complex and deeply personal transition. By helping them assess their readiness across various dimensions—physical, emotional, financial, and cognitive—we can support them in making informed and fulfilling decisions about their future and help them optimize this phase of life.

“Often when you think you are at the end of something, you are at the beginning of something else.” —Fred Rogers

To find a therapist, visit the Psychology Today Therapy Directory.