We frequently receive emails from readers agreeing with our view that traditional retirement is changing. Many are continuing to work into their 70s, 80s, and yes, a few in their 90s. They want to stay in the workforce for a variety of reasons.
The concept of traditional retirement—working until 65, then abruptly stopping to live off accumulated savings and Social Security—has become increasingly outdated in our modern world. After all many people aged 65 still have energy and health and want to keep working. Some want to continue at their jobs because they need the money or believe that a few extra years of work will offer them a better retirement financially in the future.
Longevity has dramatically increased since retirement was institutionalized in the early 20th century. When Social Security began in 1935, average life expectancy was around 61 years; today, it's approaching 80. This means the traditional retirement model now needs to financially sustain people for potentially 20-30 years—a duration it wasn't designed to support.
Simultaneously, economic realities have shifted. Defined benefit pensions have largely disappeared, replaced by self-directed 401(k)s and IRAs that transfer investment risk to individuals. Meanwhile, inflation, volatile stock markets, and rising healthcare costs create significant financial uncertainty for many retirees. Many Americans have insufficient savings, with median retirement accounts holding less than $100,000—far below what's needed for decades of full retirement. Social Security faces long-term funding challenges that may reduce future benefits.
The nature of work itself has transformed. The physical toll of labor that necessitated retirement at 65 has diminished as knowledge work becomes predominant. Many can now remain productive well beyond traditional retirement age and increasingly want to. Research consistently shows that purposeful work contributes significantly to mental and physical well-being in later life. What better reason to keep at it.
Today's retirees also seek meaning beyond leisure. The vision of endless golf and relaxation holds limited appeal for many who crave continued contribution, growth, and social engagement. Modern retirement is evolving toward "REWIREMENT"—a reimagining of later life combining flexible work, learning, service, and leisure.
You don’t just have to keep working in the same old way. There are other options: phased retirement, encore careers, consulting work, entrepreneurship, or part-time employment that balances income needs with lifestyle preferences. This gradual approach provides continued purpose while extending financial resources. Now that’s a good thing.