Retirement Has Changed. How You Plan for It Should, Too.

For decades, Americans have been taught to build their financial lives around one event: retirement. Save early, save often, and one day you can stop working altogether. Retirement has been marketed as the pinnacle of a successful life, the moment that finally belongs to you. But what if this premise is flawed? What if retirement, as we imagine it today, is not only outdated but potentially harmful? And what if the real goal of saving isn’t retirement, but something more meaningful? In my book, Good Money, I argue that the traditional retirement model—40 years of work followed by decades of withdrawal from it—is out of step with modern life and with what we know about human flourishing. Americans now live longer lives than any generation before them, as do others around the world, and many can expect 15-20 years or more of retirement. Yet research repeatedly shows that leaving work entirely can sometimes lead to poorer physical health, cognitive decline, and even increased mortality if handled poorly. This is perhaps not surprising given that full retirement can lead to decreased physical activity, lower community engagement, and loss of a sense of purpose and direction. The problem, in this context, is not retirement per se. It is the way we have elevated it into the central purpose of financial life. Retirement has become a destination in and of itself, an abstract ideal rather than a conduit to achieve greater meaning and broader relationships. Most people think they want retirement, but they actually want freedom. They want to control their time pursue meaningful work instead of obligatory work, spend more time with family, invest in their communities, and engage in activities that give them purpose. What they want is the ability to walk away from work that drains them—and the ability to run toward work that energizes them. They want agency and autonomy, not idleness. Freedom—not retirement—is the real goal. And financial planning makes more sense when we recognize the difference. Saving for freedom reframes the entire conversation. Instead of asking, “How much do I need to stop working someday?” the more important question becomes, “How much do I need to live the life I want, now and in the future?” Instead of viewing work as something to escape, saving for freedom encourages us to think about which kinds of work we most want to do someday and how to structure our financial lives to make those choices possible. This might look like taking a job for lower pay but greater meaning, or reducing formal work hours to focus on increased community and family engagement. The possibilities are endless but involve continuing to use one’s talents and abilities to impact others and potentially retaining some earnings in the process that mitigate the need to live off savings exclusively. That goal can be reached sooner than conventional retirement. Using the (admittedly oversimplified) “4% rule,” a person spending $75,000 per year needs to save nearly $1.9 million to fully exit the workforce. A person who continues earning even $35,000 past the age of 65, through enjoyable work, lowers that goal to ~$1 million. If our savings goal is not to quit earning entirely but to enable flexibility in our career choices, that outcome can be achieved more quickly. The shift is profound. When people believe they are saving for retirement, they often defer meaning and joy for decades, holding out for a payoff that may or may not come. This is evidenced by statistics showing abysmally low rates of engagement at work, with only 23% of people globally feeling real purpose in their jobs. They stay in roles they dislike because the stakes—pensions, health insurance, seniority, retirement accounts—feel too high to risk change. When people save for freedom, saving becomes about shaping a life rather than enduring one. It still involves prudent financial management, putting enough into investments and retirement accounts to alleviate some financial necessity. A financial cushion becomes a tool for switching careers, starting a business, working fewer hours, taking a sabbatical, or simply saying no to toxic environments. It enables people to craft a life marked by intention rather than obligation, making them more resilient. Retirement is a cliff—one day you work, the next you don’t. Freedom allows for gradual transitions as we get older: part-time work, consulting, small business ownership, or mission-driven roles that pay less but matter more. It softens the landing and widens the possibilities. This is what money is actually for. Not to engineer the absence of work, but to enable the presence of meaningful work and offer a wider range of options for the type of work that a person can choose to pursue. Money is a means, not an end. Its purpose is to help us shape lives of meaning, impact, joy, and connection. This is not a radical idea but rather reflects an ancient understanding of human purpose. From Aristotle to modern psychology, thinkers have argued that humans thrive through purposeful activity. A life oriented around impact is both personally fulfilling and acknowledges the remarkable contributions older people have to offer to our workplaces and communities. For this reason, some people will choose to keep working well into their 70s or 80s, not because they need the paycheck, but because they find fulfillment in their professional pursuits. Work, at its best, provides structure, community, and a sense of identity. We have an opportunity to work in relationship with others, keep a vibrant schedule, and direct our talents towards impacting and serving others. At its best, work is personally edifying and enriches the lives of those around us. Saving for freedom makes possible a transition to a more enriching use of our talents: mentoring young people, volunteering with nonprofits, investing in faith communities, deepening family bonds, or pursuing professional passions. Traditional retirement may still make sense for some people. Health challenges, aging, and years of physically demanding labor can make rest both wise and necessary. But even then, the aim should be, as much as possible, active and purposeful living. A life freed from obligation, not from meaning. For a generation experiencing longer lifespans, rising dissatisfaction with traditional career paths, and a cultural hunger for purpose, this shift in thinking is essential. Retirement may remain a phase of life, but freedom should be its guiding principle. Adopting a mindset of saving prudently for freedom, agency, and flexibility in work rather than simply for leisure can be transformative. The real question is no longer, “When can I stop working?” but, “How can I build the financial flexibility for the life I want to live?” John Coleman is the author of Good Money: Six Steps to Building a Financial Life with Purpose (Harvard Business Review Press, 2026), which is available now. Buy Now

Retirement Has Changed. How You Plan for It Should, Too.

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