The 4 Phases of Retirement: A Guide to Finding Your Purpose After Work

How to Squeeze All the Juice Out of Retirement

I'll never forget the day my dad retired. After working for the same company for nearly four decades, he walked out of the office on his last day with a big smile and a firm belief that he had officially entered a permanent "vacation" phase. He was going to spend his days fishing, golfing, and tinkering in the garage. For a few months, he did just that. He was ecstatic.

But then, something shifted. The "permanent vacation" started to feel less like a tropical beach and more like a vast, empty ocean. The days stretched on, and the question, "What am I going to do today?" began to loom large. He was financially prepared, but he wasn't psychologically ready for the biggest shift of his life.

This feeling of being adrift in retirement is far more common than you might think. Many of us focus on saving for our golden years, but as speaker Dr. Riley Moynes points out, we often forget to prepare for the psychological journey itself. According to a 2024 CBS News report, America is in its "Peak 65" moment, with over 4.1 million people expected to turn 65 this year alone. This massive wave of new retirees is facing a surprising challenge: a potential decline in mental health. One study from the National Bureau of Economic Research found that retirement can lead to a 6-9% decline in mental health over the course of six years.

But it doesn't have to be that way. Based on his own experience and interviews with dozens of retirees, Dr. Moynes has identified a powerful framework: The Four Phases of Retirement. Understanding these can help you not just survive, but truly thrive.

Here's how to navigate the journey:

Phase 1: The Vacation Phase (The Permanent Saturday)

This is the honeymoon period. You’ve finally escaped the 9-to-5 grind, the alarm clocks, and the deadlines. Your calendar is blissfully empty. It’s a time for travel, hobbies, and catching up on all the things you put off. You've earned this. It's a fantastic phase, but it's important to recognize that it's temporary. After about a year, the novelty can wear off, and a new kind of routine is needed.

Phase 2: Loss and Feeling Lost

This is the most challenging phase. It’s where you confront the five major losses that come with leaving the workforce:

• Loss of Routine: No more daily structure.

• Loss of Identity: Who are you now that you're no longer a teacher, an accountant, or an engineer?

• Loss of Relationships: The daily banter with colleagues disappears.

• Loss of Purpose: You no longer have a clear mission or contribution.

• Loss of Power: You're no longer the expert or the one in charge.

This is the phase where feelings of anxiety, loneliness, and even depression can set in. An AARP study revealed that roughly half of all retirees are forced to leave work earlier than planned due to health or other life events, which can make this phase even more difficult.

Phase 3: Trial and Error

This is the messy, but necessary, transition. After feeling lost, you start to experiment. You might take a pottery class, join a hiking club, or volunteer at a local library. You're searching for new purpose, and not every attempt will stick. This phase is about having the courage to try new things without fear of failure. It's about finding out what truly lights you up.

Phase 4: Reinvent and Rewire

This is the most rewarding phase, and it’s where you truly "squeeze all the juice out of retirement." You've gone from retiring from something to retiring to something. Your new purpose is often found in service to others. Dr. Moynes highlights people who use their lifetime of wisdom to mentor others, start community projects, or simply offer a listening ear. This phase isn't about simply being busy; it's about being significant. It’s about building a new, fulfilling life with a strong sense of mission and contribution.

The key to a successful retirement isn't just a full bank account, but a full sense of purpose. By understanding these four phases, you can prepare for the emotional and psychological journey ahead and ensure your post-career life is the most rewarding chapter yet.

Call to Discussion: What are your thoughts? If you're retired, which phase are you in, and what's your best advice for others? If you're not there yet, what are you doing to prepare beyond the financial side of things? Let's start a conversation in the comments!

Disclaimer: The information in this article is for informational purposes only and should not be considered professional financial or psychological advice. Please consult with a qualified professional for personalized guidance.

Author: Dr. Riley Moynes in a Tedtalk in 2022. This video generated 2.4m views.