The Historic Transformation of Retirement

Since its beginnings in the late 19th century, retirement—the post-career phase of life—has been a central component of American culture, socially, economically, politically, and psychologically. From a social sense, retirement eventually became seen by many Americans as a primary goal in their lives, a much-deserved reward after decades of hard work. With Social Security, a little nest egg, and perhaps a pension, one could finally do what one wanted rather than have to earn a living for oneself and one’s family.

It’s not an exaggeration to say that by the mid-20th century, retirement was perceived by many as a kind of paradise on earth, a time of rest, relaxation, and leisure. Many Americans’ lives became heavily oriented around the concept of retirement, specifically by determining when one could stop working by having enough money to do so. Today, three generations—baby boomers, Xers, and millennials—have retirement on their minds, wondering if they will ever be able to stop working, should they want to.

The development of retirement as an institution in American culture has had many important economic implications. For businesses, mandated retirement policies (usually at age 65) were a means to force older employees out of the workforce (based on perceived efficiencies), with pensions offered as compensation. As well, an entire industry centered around retirement took shape as financial advisors, insurance companies, and labor unions each recognized there was much money in it.

Politically, Social Security has served as a key issue and major concern since it began in 1935. The idea of public welfare has been critically viewed by many conservatives, and the arrival of boomers has created the fear that Social Security could very well bankrupt the government. (In some cities and states, the retirement of civil service employees is indeed crashing annual budgets.) Since the 1970s, in fact, efforts have been made to dismantle the retirement system, and the issue remains a flashpoint in the national conversation.

It is on the personal, psychological level, however, that retirement is having the greatest impact on people’s lives. Many retirees are now challenging the traditional model of retirement that was based on taking it easy during one’s “golden years.” The emerging model approaches one’s post-career phase of life as a new chapter rather than an epilogue to the main story. All kinds of options are being pursued, including starting a business, volunteering, going back to school, spending more time with family, developing a new interest, or exploring a spiritual path.

As well, along with bucket list travel, tracing one’s family history is especially popular, as is taking a class in a subject that has nothing to do with one’s career (art history appears to be trending). Connecting with people from the past, even elementary school, is another thing that retirees are pursuing, as modern technology has made it a lot easier to track down that third-grade best friend.

Other retirees are finding full- or part-time work, especially boomers, who closely associate work with their personal identity. Fortunately, many companies are catching onto the fact that older workers are a valuable resource, and innovative ways of connecting the two sides of the equation are appearing. Customized job-matching platforms are popping up online, geared to job-seekers aged 55+ who want to pivot and employers who are seeking a fresh source of talent.

In short, a good way to define retirement today is “stimulation, not hibernation,” a transformative experience that offers purpose and the opportunity to continue growing as a human being.