Some people decide to retire by chance. For others, it is triggered by something negative happening, such as a death, dissatisfaction with work, or a serious illness. And many people feel in full control of their decision and are happy to dive into this chapter of their life. The motivations for retiring vary from person to person. However, recent research has shown that: NewRetirement Facebook Groupfound that there are clear trends in what motivates people to retire and live life on their own terms.
What motivated you to retire? Check out the 8 most commonly cited reasons that recent (and soon-to-be) retirees cited as driving their decision to retire.
1. The happiest and best reason to retire: Financial confidence
Retirement is more achievable when you understand how all your financial situations fit together. Retirement doesn’t cost a million dollars; it takes detailed planning. Many people find the motivation and confidence to retire when they feel confident about their ability to make payments for the rest of their lives.
Julie summed up her motivation for retiring: “I realised that I don’t need an income, but should use it to enjoy it to the fullest every day. I couldn’t do that in corporate life.”
Janice writes:I always enjoyed my job, but one day I looked up and said I’m done! I started working when I was 14 and I was 64. I was on my husband’s health insurance until he retired a few years later. By that time we were both at FRA. We signed up for Medicare, I applied for full SS benefits, and he applied for spousal benefits. He’s doing an IRA conversion and will be turning 70 in a few months and switching to a benefit roll. We’re happy with how it all worked out.“
Buddy plans to retire financially secure, but will return to some kind of work on his own terms. He writes:Net salary and net retirement income were roughly the same, and I had the opportunity to continue to grow my investments…I wanted to transition into a new career while I was “young”…The opportunity to reduce stress and improve my health…The ability to get my time back.“
What are your plans? Plan for your future with the NewRetirement Planner. It’s free, easy to use, and offers more than just savings and investments. See how you will generate income in retirement and make sure it’s enough to cover your expenses.
Make better use of your time, taxes, investments, debt, housing, income, expenses, healthcare, etc. Make better decisions for a secure future.
Every day we hear from people who are planning to retire soon or have just retired because using the NewRetirement Planner has given them more confidence.
2. Health problems often lead to retirement
Health concerns are another big motivator for people to live the life they want after retirement.
David wrote that he decided to retire because he saw so many people missing out on happy times. “I saw so many people who worked too long and then retired because their health deteriorated. I wanted to enjoy retirement while I was still healthy. I even started a small business, but now I’m in control of my own schedule and doing what I love.”
Kevin endured surgery to get out of the rat race. “Health issues, knee problems/knee replacement, slow recovery afterwards, lots of fatigue, [retirement]”It probably didn’t seem worthwhile to go back a few more years.”
Tim decided to retire on the way to the hospital. He said: “I was in a bicycle accident. I thought the smart thing to do would be to go to the ambulance.”
The coronavirus has forced many people to resign.
The pandemic has triggered what has been called the “Great Exodus,” where large numbers of people have left their jobs for pandemic-related reasons. Microsoft’s Work Trends Index report Surveys show that 41% of workers globally are considering quitting their jobs due to the pandemic, with more than 30% of respondents in a NewRetirement survey citing COVID-19 as a motivation for quitting their jobs.
Aline had an awakening when she contracted the virus, she wrote, that made her motivated to retire. “I was hospitalized with COVID and then I got injured at work. For me, it was enough to say I needed time to take care of myself.”
3. The death of a loved one reaffirms the value of time over money
Nothing motivates you to live life on your own terms more than facing death. Losing a loved one is devastating, but it helps you reprioritize your life. And for some, that means retirement.
Cheryl was devastated by the deaths in her family. She recalls:We lost my brother (who was 28 at the time) and his father died at 58, just three years after retiring. Life is short. We didn’t want to spend it working.”
Regarding his motivation for retiring, Kay wrote: “The death of a close friend has made me keenly aware of how short time is. Let’s live life to the fullest.”
There is a wealth of research showing that there are significant benefits to facing and thinking about death. Science DailyThinking about death has the following effects:
- Improve your physical health
- Facilitating positive change in your life
- It motivates people to help others and “increases expressions of tolerance, egalitarianism, compassion, empathy and pacifism.”
4. Age discrimination and forced retirement
According to an April 2024 survey by Edward Jones, 40% of retirees have been forced to retire early.
And age discrimination is rampant. study It was found that 61% of older workers experienced age discrimination in 2018. That number increased to 78% in 2020. And, the study A New York University study found that even workers who openly oppose racism and sexism still hold prejudices against older workers.
Still, fewer than 10% of people in NewRetirement’s survey said age discrimination was a motivator for them to leave their jobs, although some did say it.
Jeff wrote:Age discrimination is real and older workers in the IT industry are not welcome. My company offered me an early retirement package. If I didn’t accept it, I would risk being fired in the future. The company didn’t see long-term value at my age.”
5. Bored with work and feeling stagnant at work
Retirement is defined as slowing down at work. But sometimes it’s the work itself that’s truly slowing down, and workers are ready to leave stasis for a more active life.
Sam was ready to try something new. “I’m tired of the toxic culture at work and the lack of opportunities for advancement.”
Kevin put his work-related worries more succinctly:“I’m sick of all that nonsense.”
In these cases, people are more motivated to get away from something than to get stuck in. But figuring out how to spend your freedom is pretty easy.
Doug wrote that he doesn’t see any new challenges. “My boss wasn’t going anywhere, my clients weren’t buying new properties, and it was just the same old thing every year. So I thought it was time to do something I loved. I moved out of state, played pickleball, rode my bike, went to the beach and the pool, and chilled out until I knew what my next step was going to be, which might include teaching or another part-time job.”
6. Something more important: Finding meaningful work
Most of us dedicate our lives to work, to earn a living, and while some of us are lucky enough to find meaning in our work, rarely do our careers depend on what is most meaningful to us.
In this case, people are retiring because, now that they have achieved a certain level of financial security, they have a more important goal – more important work to attend to.
Whether that means volunteering for a cause, starting a business that gives back, taking the time to write a novel, or pursuing some other endeavor, retirement can be a time to dedicate yourself to something meaningful, whether it’s for money or not.
7. Catch bigger fish: Prepare to focus on family, travel, and leisure
Oddly enough, lifestyle considerations such as hobbies (do you like fishing?), family, travel and other leisure activities were not mentioned much in the survey.
Other studies have found that travel and hobbies are big factors for people wanting to retire, but they may not be the reason they ultimately decide to retire.
8. Being caught up in a family crisis
Many people, especially women, leave their jobs to help their aging parents.
As family members age or face health challenges, they often need dedicated care.
Leaving your job to become a caregiver allows you to provide your loved ones with the attention and support they need without the stress and time constraints of work. Moreover, caregiving can be mentally and physically demanding and difficult to manage alongside a job. Therefore, the decision to leave your job is often made to ensure that your family member receives the best possible care, improves their quality of life, and ensures their needs are met effectively.
“I left work to care for my mother after she had a stroke – the decision was an emotional one, the stress of caregiving was very real and the financial burden was huge.” Jill wrote.
Caregiving can be enjoyable, but it can also be stressful and take a toll on your financial well-being.
What motivated you to leave?
Are you planning to retire from something and for something? Have you properly prioritized your retirement date by considering what is important to you? How might your retirement date change if you wanted to:
- Do you want to make the most of your time with your family?
- Laugh more?
- trip?
Retiring is an entirely personal decision. Jeff writes:We all have to make decisions based on the circumstances. I remember as a kid, I stood on the diving board and decided to dive. I looked down and I had to take a deep breath. When the time was right, I would know it was time.“
Are you financially prepared for whatever adventures await you? Use the NewRetirement Planner to envision your future and discover how to make it a reality.
