Retirement, Implications of

Retirement refers to an ongoing period in life that traditionally has been considered to begin at the point of withdrawal from work life. Retirement is a social concept implemented primarily during the past 100 years due to changes in life expectancies and population demographics. The increase in life expectancies over the past century has produced both challenges and opportunities during the retirement phase of life that continually require increased attention and resources. The arrival of the baby boom generation at retirement age has enormous implications for population demographics, the workforce, and a host of social and economic issues. A dramatic trend toward earlier retirement, coupled with increased life expectancy, ensures a growing focus on issues related to retirement. The fact that the average American can now expect to be in retirement for 15 to 20 years creates demands that no other generation has faced. Retirement has broad social and cultural implications. [Page 372]For individual retirees, this period of life holds remarkable potential and risk as well.

The usual definitions of retirement address withdrawal from the workforce and the remaining years of life. Operationally, retirement has been conceptualized in a variety of ways: (a) a well-deserved rest as a reward for years of work, (b) a means of maintaining an effective work force, (c) a period of transition to old age, (d) a distinct period of human development, (e) a period for postretirement careers, and (f) a period of adjustment to loss of work identity. Perhaps all of these are applicable across or within particular cases. The development of a general theory or model for retirement has been difficult for several reasons. For example, the number of factors that influence the nature and quality of the retirement experience is substantial. Further, there is no real standard for the onset of retirement. Some workers choose to retire early; some choose not to retire at all; others are subject to forced retirement; some retire partially; and some return to work after retirement.