When longtime reporter Stephen Kreider Yoder retired, he expected relief.
Instead, he felt what he described in the Wall Street Journal as a “vacuum”—a hollow place where his career once lived (1). He writes about the disorganization of waking up to his days without deadlines, managers, or a central organizing force. “Who am I now?” came a silent, persistent question.
His wife, Karen, experienced retirement differently. She filled her days in the “woman cave” with sewing projects. She never worried about losing her professional identity because she had hobbies and side pursuits.
Their story illustrates a broader truth: retirement is both a financial event and a psychological one.
According to the Employee Benefit Research Institute, while 67% of workers feel financially confident about retirement, only 26% of retirees say their overall quality of life in retirement is better than expected (2). This suggests that there are still retirees who face an emotional gap between what they expect and what they will find in the first few years after leaving work, shaping the rest of their retirement.
And then there’s the financial layer that can affect the overall retirement experience. Even retirees with healthy nest eggs are unhappy about the cost.
The 2026 Paycheck or Pot of Gold study from MetLife found that 58% of early retirees and 51% of retirees worry about running out of money (3). Because of these concerns, 46% of early retirees say they need to reduce their spending while 44% of current retirees say they have already done so (4).
And that concern may grow. The same study shows that 96% of pre-retirees and 90% of retirees now want professional guidance (up from 86% and 81% in 2022, respectively).
Meanwhile, the demographic wave known as the “Poke 65″—consisting of individuals between the ages of 61 and 65—is a group directly affected by concerns about market volatility, inflation, and social security (5).
According to the 2025 Protected Retirement Income and Planning (PRIP) study, 30% of Americans in this group are considering delaying retirement. Meanwhile, 58% of Americans worry that their Social Security benefits could be cut due to recent actions by the administration (5).
Additionally, when combined with the many new rules for 2026 that affect retirees, including a 2.8% Social Security cost-of-living adjustment (COLA) and higher Medicare premiums, it’s clear why retirement planning can feel simple but simple (6).
Read more: The average net worth of Americans is a staggering $620,654. But it makes almost no sense. Here’s the number that counts (and how to make it skyrocket)
Researchers often describe retirement as appearing in stages: a phase of despair after the honeymoon period. Without work structure, some retirees feel restless.
A good way to handle the transition is “identity bridging,” which involves transferring parts of yourself to your new life before you retire (7). A former executive can be a mentor. A teacher may be a teacher. A marketer may serve on a nonprofit board.
Volunteering can be empowering. Interestingly, more than 25 million Americans between the ages of 50 and 70 are interested in using their skills to address social needs (8). Goal-oriented activity is associated with stronger mental health and social relationships.
Maximizing your time isn’t about filling every hour. Instead, it’s about choosing activities that strengthen your developing identity.
Amid this evolving identity, financial sustainability requires careful balancing with flexibility.
A recent Morningstar study suggests a safe starting withdrawal rate of about 3.9% for new retirees using an inflation-adjusted strategy. However, experts claim that retirees who can raise or lower discretionary spending based on market conditions may be able to spend more overall (9).
This means distinguishing between fixed expenses — housing, insurance, health care — and flexible expenses like travel, gifts or home upgrades. In strong market years, you may have room for more spending. In lean years, consider this. In any case, living below your means is the safest bet.
If you live with a spouse, it is very important to coordinate with them. According to AARP (10), only 11% of couples retire at the same time while 62% retire more than a year later. Retirement affects cash flow, Social Security timing and family roles.
Early discussions about when to retire, where to live, when to claim benefits and how much to support children can also prevent later conflicts (11).
Here are some ways retirees can find fulfillment in the years ahead:
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Create routines without over-scheduling
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Maintain social relationships
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Rekindle abandoned hobbies
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Apply professional skills in new situations
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Allow yourself to develop
For some, it looks like Karen sewing projects. For others, it may mean part-time counseling, volunteer leadership or extended travel in the early years.
The early years of retirement are formative. They can widen the “gap” – or become the foundation of a deeply satisfying next season.
Retirement isn’t just about whether you’ve saved enough.
It’s about answering with certainty: Who am I now—and how will I maximize my money and time to live that answer to the fullest?
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The Wall Street Journal (1); Employee Benefits Research Institute (2); Metlife (3); Planning Consultant (4); Sun consumption (5); AARP (6, 7, 10, 11); Boldin (8); morning star (9)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
