The modern idea of retirement was built on a premise that turned out to be wrong. It was assumed that people would spend most of their lives working and would only be retired for relatively short periods of time. Instead, many Americans now reach age 65, healthy, active and with a third of their lives ahead of them. Yet we’re still using a retirement model designed for a world in which aging was shorter and fewer people expected to live decades after leaving the workforce.
My guest says that old assumption produces some unfortunate unintended consequences. This causes people to be extremely stressed about money, postpone meaningful experiences with family and friends, and sometimes sacrifice the things that make life worth living in the first place. He argues that by rethinking retirement – not necessarily eliminating it, but reimagining it – we can enjoy our lives more while actually feeling more secure about the future.
His name is Derek Coburn, and he is a financial advisor and author let’s retire. Today on the show, Derek explains why the traditional retirement model came to be, why it no longer makes sense for many people, and how working even a few years after 65 can dramatically change the math of retirement planning. We also discuss the surprising psychological challenges that many people face after they stop working, why purpose matters more than leisure, and how thinking differently about retirement can free you up to spend more time on the things that matter most right now — whether it’s traveling, strengthening your marriage, or making the most of the limited summer you have left with your kids.
