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Retirement in reality - 6 months in

For those of you who have not connected, I retired 6 months ago from being a full-time academic after researching retirement planning for nearly 20 years. Now I am focusing on implementing my findings: for myself, for individuals and for organisations. As I promised when I retired, I am providing a month-by-month account of my findings from the other side. This month I am exploring career and possible reasons for hanging on to identity.

Work Identity

I’ve been thinking about a lot in the last month – largely because I found myself wandering back to similar work that I’d walked away from just 6 months ago. It meant temporarily parking up other plans – new plans - and reverting back to a well-trodden path in Educational Leadership. I didn’t especially need the money but I was committed to the Program (which I think is great). I found myself pulling my pants over my tights in Supergirl style to save the day. I was back to old patterns. Worse still new routines I had in place around eating and exercise came to a stand-still. When I was not working, I was thinking about work even though it was only part-time and a short-term contract.

My dietician asked me “Why did you agree to do it?” and my reply shocked me “Because they needed someone who could jump in quickly and I had the skill set”. Really? Just me? The only person in the whole wide world who could fix the problem? Highly unlikely. Then I listened to my SBS Insights interview where I say something relating to having the responsibility to share what we’ve learned about retirement planning so other people could benefit.

I started to reflect on my identity and what might best explain this irrational behaviour. I’ve never fully bought the identity crisis issue because it implies everyone is wedded to their work (spoiler alert – they are not) and that leaving is mostly involuntary. I’d buy the identity argument if people experienced ill-health, carer responsibilities or jobs were made redundant but if people are so highly invested in their work identities why did they voluntarily leave work in the first place?

Retirement theory to explain the reality

So what are the other possible explanations?

1. Psychologists might best explain my behaviour as evidence of Continuity Theory. Robert Atchley examined the role of continuity theory in 1971 in his article "Retirement and Leisure Participation: Continuity or Crisis?" published in The Gerontologist. Definitely worth reading. His early work largely focused on the role of leisure. According to this theory I might have agreed to participate because I wanted to keep my previous work identity alive and this was one way of doing it. There are some parts of my old work life I voluntarily continue. I mean, I see the benefits of progressing my retirement research, counselling and consulting – I’m obsessed – but chaotic administrative roles were not on my list.

2. Behaviour Economists might explain it differently. Perhaps what I was witnessing was not a willingness to let go of old identities but a sunk cost fallacy – something like “It was hard to get into my course. I studied for years and years. I completed four university degrees. I made great progress. I still need to keep going to make the best use of it. Anything else would be a waste.” Maybe that’s true, but not all parts of it need to be retained, only the selected bits that still make sense. In any case it was only a month-long contract and great lessons were learned.

Recognising the useful bits

So what can I tell myself and other people who are hanging on to old work identities and can’t move forward, who share a similar compulsion? I reminded myself about a white woollen pant suit I once bought. Fitted me perfectly, made me feel like a million dollars but it was totally impractical. Every time I tried it on, I talked myself out of wearing it until one day I said “no more – that pant suit has outlived its usefulness”. How did I feel donating that suit to make room for more suitable clothes? Relieved. Refreshed. Brave.

Retirement can be chaotic too

The other challenge I am coming to terms with is that, despite my very best efforts, some days (and weeks) are very chaotic. I imagined I would be able to easily partition off time for work but in reality, sometimes there are many different things simultaneously converging. In addition to the educational leadership role, the SBS episode I participated in aired one day before leaving for a holiday. I only found out two days ahead of airing and I was bombarded with requests for radio interviews. I found myself in the ridiculous situation where I was participating in radio interviews before, during and after a Conexus Institute round table. I could have said no, but I’d invested about 8 hours in the SBS episode and, you guessed it I wanted to make the most of it… sunk cost fallacy. In reality, at least for me, it is very difficult to smooth out work demands. That's something I need to examine more closely.

Spending

I think sunk cost fallacy might also be applied to explain a lack of spending behaviour in retirement. In this case ‘saving’ is the goal and then continuing to do that seems like the more comfortable option. The mindset is something like “I don’t want to touch this money after I spent so long saving it”. I caught myself shopping for a birthday card last week and (illogically) thought I should buy several more in case the price goes up. It reminded me of the period about 12 months ago as I started to slide into retirement. I started buying things imagining that “I won’t be able to afford these when I retire”. Of course, that’s not true but as a result I now most likely have enough cards to last me until I die – if only I could find them amongst the bars of soap, shampoo, toothpaste and dishwashing liquid I’d hoarded alongside them.

So how important really is identity to you? If it’s that important why leave work? If you do leave work, which bits will you hang on to and which bits will you happily leave behind? If you do work part-time or casually how do you organise your time so that it doesn’t absorb your whole week?  How will you manage the psychological switch from accumulating wealth to spending it?

 

Joanne Earl is a Psychologist and Honorary Professor of Psychology and Retirement Planning. You can read more about Joanne’s retirement journey via LinkedIn or visit her website: www.retirementdr.com.au.

 

  •   2 September 2026
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24 Comments
Jo Earl
September 10, 2026

Well that will certainly do it. Thanks for sharing Lola.

John
September 03, 2026

Now retired for a decade, my wife and I are wealthier than when we retired. Why? Because market investment returns (thanks to the US markets) have significantly exceeded drawdowns. I'm no longer chasing wealth, just trying not to lose too much of what we already have. We are now well into our 70s, when life naturally starts to slow down, as does spending aside from healthcare.

6
Jo Earl
September 10, 2026

You make a good point John and I think without financial advice it is often very difficult for people to predict just how well their investments can work for them. I'm feeling pretty good now I've stopped stock piling for a rainy day.

Peter Grace
September 03, 2026

Here's a view from partway through retirement. I'm now 79 and entering the passive phase of retirement because of my wife's mobility and cognitive problems. I was employed by big businesses and government offices for 30 years and in 2002 (aged 55) I quit to run my own contracting business writing and training in the financial planning space. This gave me great flexibility, and my wife worked in childcare casually. We had started transition to retirement pensions and had income from our flexible work. We travelled a lot to exotic locations and to visit family and friends together. I joined many adventure motorbike rides here and overseas and my wife went cruising with her cousin. The active phase of retirement.

In 2012, I started playing ukulele and joined a ukulele society to learn more and find new friends. I had 2 identities - a training consultant and a ukulele player. I closed my business in 2002 and gave all my attention to the ukulele. I'm now president of the society and have a great time playing in bands and entertaining other uke players and the public. I'm working as hard as I ever did.

Financially we had 2 account-based pensions and an aggressive investment strategy (a bucket system built so we don't care about volatility and always have enough to pay our pensions). This works though traditional financial planners won't consider it. I found someone who would advise on products, and it has been spectacularly successful. We don't stand a chance of spending it all even if we lived to 100. We draw the minimum and it's still more than we can spend. I've started making interest free loans to family and friends so at least money can make a difference in their lives.

5
Jo Earl
September 10, 2026

Thanks for sharing Peter. It is a wonderful story of combining different roles. I once completed some interviews with a group of Doctors, one was a top Ophthalmologist. His video caption was "Ophthalmologist and Magician". We concluded his interview with a magic trick.

David
September 03, 2026

I am really enjoying your updates. You are allowing us to look into some of the issues that you are facing and give us insights into our own situations and decisions that need to be made. I am semi retired and just work freelance projects as they arise. Not ready yet to stop completely. For me in thinking about this stage of life I find that I have a lot of choices and this can be hard to navigate. We really have too many choices if you have good health and the finances to not have to be working to pay bills. But the bigger question is around identity. Who am I now that I don't work given that I worked for 40 year. That's a big life change
.

4
Jo Earl
September 10, 2026

Really appreciate your feedback David. Having more choices often makes decisions more complicated and harder to reconcile. I would start with a couple of exercises - maybe (1) the 63 hour worksheet (you can download for free no email etc. needed from www.retirementdr.com.au) to think about what a week in retirement might look like and (2) Which bits of identity you want to retain (and known for).

Will
September 03, 2026

Nice update Joanne. You’re an academic so it’s natural for you to analyse how your retirement is progressing. With my own retirement, it took around 6 months to settle into a new routine and develop interests that I previously had little time for.

In the early days, one of the most difficult issues that troubled me was loss of my work identity. I must admit that even after 8 years, I still miss my work identity a little.

One small piece of advice that I would share is don’t over analyse everything, give yourself permission to be spontaneous and let things develop without feeling guilty for not having a structured plan (like you had during your working life). Retirement is wonderful.

3
Jo Earl
September 10, 2026

Thank Will. You are very kind. I must have been channeling your energy when I replied to a post last week about retirement guilt on LinkedIn. Here's what I said: “ Love it. When you describe retirement guilt it sounds a bit like survivor guilt after redundancies. I've been outside in the sun today and after sitting in a box without any windows for 3 years it feels magnificent. I let the guilt dry up in the sun like a muddy puddle.” I'm tuning into more opportunities for fun (slowly).

Annabel
September 03, 2026

I'm a semi-retired health professional, working 3 days a week in a job that I love. I've recently turned 60. I find I'm spending most of my days off working on my health and fitness. I cycle, run, strength & resistance train and walk everywhere. Maintaining my fitness and making new social connections is quickly becoming my new career! I plan to take some long service leave next year when I'll ease into full time retirement.

2
Jo Earl
September 10, 2026

Annabel - thnak you for sharing. It is great to hear you are giving so much thought into how you retire. In one of our studies we found that health and wealth were equally important in predicting retirement adjustment so investing in health is a smart use of your time. Social connections provide three key benefits: tangible, emotional and troubleshooting support. Plus fun - of course.

Steven
September 05, 2026

Nice article.
After more than 30 years in Corporate, I took early retirement at 55. Sold or donated everything, packed a backpack and took off travelling. Haven't had time to miss even the most positive aspects of work life.
PS. I'm typing on a train from Vilnius to Kaunas, Lithuania.

2
Jo Earl
September 10, 2026

Thanks for the feedback Steven. What an adventure!

Peter
September 03, 2026

I'm not sure you are out of the woods yet Joanne. Understanding where you are at is different from doing something to change that. Good luck. Have you smelt any roses?

1
JoanG
September 03, 2026

Or staring in an interesting and helpful volunteer job; that's definitely worth a go, to get you in a different and rewarding direction!!

2
Jo Earl
September 10, 2026

I am getting there Peter. I think change is possible only after diagnosis. Spending more time smelling the rosemary (no roses), cutting the lawn, painting the fence, hanging out at lunch, catching up with friends. I'm letting the retirement guilt dry up in the sun like a muddy puddle.

A
September 03, 2026

I’m entering semi-retirement aged 51 starting in Feb 2027 and I’m at a complete loss how I’m going to structure my new life and switch from a saver to a spender after an embedded lifetime of saving for this early retirement.

1
Jo Earl
September 10, 2026

It is a good point A. I think if you have set up systems for regular savings it can be difficult to let them go. I think financial advice can help to set up these new systems. If you need help with the other parts contact me via my website and we can set up a free 30 minute chat. Go to www.retirementdr.com.au.

JoS
October 10, 2026

A little bit late in responding to this, however, my experience has been that the move from a saving to a spending mindset needs to be a gradual process... we are nearing the end of Year 3 of early retirement and it is only just now that we are comfortable with drawing down a larger percentage of our capital. We have given ourselves a 'payrise' each year (not due to any inflation concerns, although there is enough buffer in the budget to cover inflation for at least a few years) but gradually increasing/giving ourselves permission to spend on 'splurge' type expenses and experiences. Having control of and the ability to run forecasts moving forward with some level of guarantee that our money won't run out has been the key for us. No financial advisor for us, just tools that allow us to model future spending and see a future ending portfolio value based on very conservative growth.

richard
September 03, 2026

excellent thank you,,,,,,,,,

Jo Earl
September 10, 2026

Thanks for the feedback Richard. Much appreciated.

Kevin Cryan
September 03, 2026

Thanks, Joanne, not everybody’s lived experience but you are suggesting a process that each individual can adapt to their circumstances

Jo Earl
September 10, 2026

Thank you Kevin - yes this is very much a N=1 example. These are just my own reflections that I hope will prompt others to similarly reflect. Also testimony to the fact I've spent 20 years examining the research but still learning "on-the-job"

 

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