Retirement is Soooo American…
Do we really need to retire? At all? Interestingly, the Hebrew language doesn’t even have a word for “retirement.” In Jewish culture, old age is revered as a virtue and sees wisdom as something gained through work, which is considered a blessing. This could be seen as an example of linguistic relativity — the idea that language shapes our worldview. In fact, even one step further, the word “retirement” has been used as an example of subliminal priming in science. Hearing words linked to the elderly such as “retirement” can effect people to walk more slowly and feel achy studies have shown. Historically, humans worked until death or illness. In that sense, work was often viewed as the central purpose of life. When we step back, it seems that the focus on retirement is very much a Western concept. The issue might lie in a negative perception of work . In the past, work had inherent purpose — much of it centered around farming, community, family, and survival. There were fewer career choices, but more focus on the work in front of us. Less choice, means less decision fatigue and mentally, more strongly satisfied without our options and outcome.
The Baby Boomers, often referred to as “The Luckiest Generation,” represent 270 million people across the developed world. They grew up during a time of strong economic growth. Now, they make up 20% of the U.S. population and own 52% of the wealth. As they transition into retirement, there’s a looming “longevity risk” for society. Many Baby Boomers will live well into their 90s, if not beyond, spending a third of their lives in retirement. The current labor force participation rate for people aged 55 to 64 is at a record high of 64% — up from 58% in 2011. At the beginning of your working life, you take more than you earn as you pay for education, long-term goods, and homes. From an investment perspective, once you earn more than you can spend from passive income, theoretically, you can retire.
However, early retirement could put pressure on the economy. If more people are retiring, this will create higher interest rates and inflation, as retirees (non-workers) continue to demand goods and services from a shrinking pool of workers. Wage inflation is also likely, as businesses scramble to fill positions.
The desire for early retirement is a byproduct of Western comfort and various societal factors. For example, Americans tend to work longer hours than Europeans and report higher levels of job dissatisfaction. This often fuels daydreams of golf and sleeping in on a Monday, leading many to eagerly await retirement. But this also speaks to the need to seek work life balance— outside hobbies and interests mixed purpose that we derive from our work, not only for our mental well-being but also for our health. When we have a strong sense of purpose, we tend to become more active and seek out other meaningful activities and opportunities for growth.
Take, for example, Folsom Prison, which produces all of California’s license plates. It’s the largest license plate manufacturer in the world. I recently watched a documentary about the prison, and one of the inmates spoke about how proud he was of his job. Despite earning no money, he found a deep sense of pride and happiness in knowing that the license plates he made were displayed on vehicles across the state. Here’s a man, incarcerated, yet deeply connected a strong with a sense of purpose in his life.
Losing purpose can have serious psychological and physical health consequences. When people feel disconnected from the meaning of their work, it can lead to stress, emptiness, and burnout. Chronic dissatisfaction with work is linked to higher levels of anxiety, depression, and even cardiovascular disease. Lack of purpose weakens the immune system, disrupts sleep, and can lead to unhealthy coping mechanisms like substance abuse or overeating. This creates a vicious cycle, eroding both mental and physical health. Reconnecting with one’s sense of purpose is crucial for maintaining overall well-being and achieving balance between personal fulfillment and professional satisfaction.
Americans work too many hours and endure too much stress from unfulfilling jobs. This fuels the desire for early retirement. But it’s not about what you do in life; it’s about whether you find purpose in what you do. Even the simplest tasks can provide satisfaction if you approach them with purpose. When your job lacks purpose, it can drain your happiness and create a ripple effect throughout your life.
Comfort and complacency are dangerous not just to the soul but to the body as well. Evolution itself punishes comfort. Take the example of the Dodo bird. This flightless bird’s ancestors migrated to the island of Mauritius, where they found an abundance of food and no natural predators. Over time, the Dodo grew larger and lost the ability to fly (This is known in the scientific community as “Island Gigantism” or Foster’s Rule). With no threats, their brains became hardwired to have no fear of predators. Then, in the mid 1600s, the Dutch East India Trading Company discovers this island and its vast amount of trees and resources. They brought dogs, rats and other animals in the boats. This led to a complete slaughter of a big, slow, fearless, and non aggressive bird. Comfortability afforded to this bird species may have seemed like a blessing — free food, no threats, permanent island vacation. However, this comfortability, led to its complete demise and extinction.
Warren Buffett and Noam Chomsky both in their mid 90s and still working everyday.
This concept of “YOLO” (You Only Live Once) is everywhere in Western culture, and it contributes towards retirement. But this idea is flawed. Life isn’t just about escaping struggle — it’s about learning and growth. Just as a doctor wouldn’t want to breeze through medical school without truly understanding the human body, we shouldn’t seek to skip the “curriculum” of life.
In the end, it’s not what you do that matters, but whether you find purpose in what you do. Even the simplest tasks can bring joy when approached with meaning. Every day of life is an opportunity to gain wisdom and purpose, from now until the moment of death. When your life lacks purpose, it can create misery, especially if you don’t have fulfilling hobbies outside of work. Make your work and life purposed filled.
