The Changing Definition of Retirement

Today we’re continuing our series on the Retirement Police.

We started with Grappling with the Retirement Police. You’ll want to read that post in case you missed it as it lays the groundwork for today’s article.

Last time we touched upon how the English language changes over time, and today we’re starting with how that has applied to the word “retirement” — specifically as it relates to working in retirement.

I asked ChatGPT the following:

How has the definition of retirement changed?

To which it replied…

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The definition of retirement has dramatically evolved over the past few decades. Traditionally, retirement meant stopping work completely at a set age, usually around 65. It was funded primarily through company pensions and Social Security, and it signaled the start of a slower, more leisurely lifestyle.

People viewed retirement as a one-time, permanent event — a clear line between working life and a phase of rest, relaxation, and passive activities like travel, golf, and watching TV. To be retired meant you no longer worked at all.

Today, retirement looks very different. It often includes part-time work, consulting, starting a business, or pursuing passion projects — not because one has to, but because they want to.

Funding retirement now typically involves a mix of income sources such as 401(k)s, IRAs, brokerage accounts, real estate, and sometimes continued earnings.

Rather than being defined by age, retirement is more accurately defined by financial independence — the ability to choose how you spend your time without relying on a full-time paycheck. It’s seen less as a fixed point and more as an evolving phase of life that may include multiple retirements or even “unretirement.”

Today’s retirees live more active, engaged lives that include volunteering, learning, traveling, and staying mentally and socially involved.

In short, retirement has shifted from the end of work to the beginning of freedom.

Here’s how the definition of retirement has changed:

Traditional Definition of Retirement (Pre-1990s)

• • Stop working completely, typically around age 65
  • Live off a company pension, Social Security, and savings
  • Leisure-focused: travel, hobbies, and rest after decades of labor
  • Work was associated with obligation; retirement meant relief

“You worked 40 years, got the gold watch, then played golf and sat on the porch.”

Modern Definition of Retirement

• • A transition, not a termination
  • Focused on freedom from needing to work, not freedom from all work
  • May include part-time work, consulting, passion projects, volunteering
  • Funded by a mix of income: investments, part-time work, real estate, pensions, Social Security
  • Healthier, longer retirements mean more active and engaged lifestyles
  • Retirement can begin before 65 (early retirement), or well after

“Retirement now means doing what you want, when you want — not doing nothing.”

Key Shifts in Retirement Thinking

Over time, there has been a major shift in how retirement is viewed. In the past, retirement was defined by a complete and permanent stop to work, typically at a set age like 65. People would rely on pensions and Social Security, and focus on rest and leisure after a long career.

Today, however, retirement is more flexible and personal. Many retirees continue to work, either part-time, as consultants, or by running small businesses—not out of necessity, but for purpose and fulfillment. Instead of relying solely on pensions, modern retirees often fund retirement with a mix of income sources like 401(k)s, IRAs, brokerage accounts, and sometimes ongoing earnings.

Retirement is now defined less by age and more by financial independence—the ability to choose how to spend your time. It’s no longer a one-time, permanent event, but an evolving phase of life that may include multiple transitions or even “unretirement.” Retirees are staying active through volunteering, travel, continued learning, or flexible work, redefining retirement as a lifestyle centered on freedom, engagement, and personal meaning.

Reasons for the Shift

• • Longevity: People live longer, healthier lives — retirement could last 20–30 years
  • Disappearance of pensions: Shift from defined benefit to defined contribution plans
  • Desire for purpose: Retirees seek meaning, structure, and contribution
  • Financial independence movement: FIRE (Financial Independence, Retire Early) reshaped retirement as a goal, not an age
  • Technology: Easier than ever to earn income online or work remotely
  • Rising costs: Many need or want supplemental income

New Models of Retirement

• • Semi-retirement: Part-time work or self-employment
  • Phased retirement: Gradual reduction of work hours
  • Encore careers: Purpose-driven work in retirement (e.g. teaching, nonprofit)
  • Barista FIRE / Coast FIRE: Financially independent but still earning for lifestyle or healthcare

Bottom Line

Retirement today is less about quitting work and more about gaining control.

It’s a personalized journey defined by freedom, not by age or inactivity.

Many retirees today work, travel, volunteer, learn, and earn — because they want to, not because they have to.

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Some thoughts on this:

• As noted above, we mentioned in the first post in this series that the English language changes over time. The Chat’s response just details how that happened to the word “retirement.” I found it pretty interesting.
• “Traditionally…To be retired meant you no longer worked at all.” This is the Retirement Police point of view summed up in a single sentence. They are living in the 1970’s (and enjoy it there). Hahaha.
• “Today, retirement…often includes part-time work…not because one has to, but because they want to.” This is my point of view summed up in a single sentence. Last time we also agreed that if someone has to work, they are not retired. But if they don’t have to work, they can then choose to work or not work and either way, they are retired (if from nothing else, they are retired from their career.)
• It’s interesting to me that they put the modern definition of retirement starting in the early 1990’s. Did it really begin that early? If so, why are we still fighting over the definition 35+ years later?
• “Retirement today is less about quitting work and more about gaining control.” I would say this statement is also correct if you replace “retirement” with “financial independence.” In fact, I’d say that most people should strive for financial independence and after that they can do whatever they want…keep working, cut back, stop working altogether, or whatever they like.

The Government’s Take

Now that we’ve covered the basics, I wanted to see what other respected institutions that deal with retirement think about working in retirement.

I started by asking the following…

How does the government define being retired?

Unfortunately, I didn’t get far…

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The U.S. government does not have a single, unified definition of “retired” — it varies depending on the agency, context, and purpose. Here’s how different parts of the government typically define or determine retirement status:

1. Social Security Administration (SSA)

• • You’re considered retired if you begin receiving Social Security retirement benefits.
  • However, even after starting benefits, you can still work — though if you’re under full retirement age (currently 66–67), earnings above a certain limit may temporarily reduce your benefits.
  • SSA does not require that you stop working to be considered retired — it’s about whether you’ve claimed benefits.

Key Point: For the SSA, “retired” means you’ve claimed benefits, not that you’re no longer working.

2. IRS (Tax and Retirement Plans)

• • The IRS views retirement primarily through the lens of withdrawals from retirement accounts (like 401(k)s, IRAs, or pensions).
  • There’s no formal retirement status — you can take early withdrawals (usually with penalties) or start required minimum distributions (RMDs) at age 73.
  • Retirement doesn’t exempt you from paying taxes; you pay taxes based on your income level and type (earned vs. investment vs. retirement income).

Key Point: The IRS doesn’t define “retired” as a legal status — it’s more about your age, income sources, and how you manage retirement accounts.

3. U.S. Census Bureau

• • For data collection, the Census defines a person as retired based on self-identification:
  • If you say you’re not working and don’t plan to look for work because you’re retired, that’s how they classify you.
  • Some surveys (like the Current Population Survey) ask whether individuals consider themselves retired regardless of income or employment.

Key Point: Retirement is a self-reported status in surveys and not tied to a specific government threshold.

4. Medicare

• • You qualify for Medicare at age 65, regardless of whether you’re working or not.
  • Many people still working past 65 delay enrolling in certain parts of Medicare depending on their job-based coverage.
  • Medicare does not require you to be retired — it’s based solely on age or disability.

Key Point: Eligibility is age- or disability-based, not tied to work status.

5. Federal and State Retirement Systems

• • For federal employees or military, “retired” means you’ve separated from service and begun drawing a pension.
  • States have similar definitions for their public employee systems.

Key Point: Retirement is officially triggered by claiming a government pension in these systems.

Final Thought

In the eyes of the government, retirement isn’t a single, legally defined status. It’s a blend of claiming benefits, self-identification, and how you structure your income. That’s why many people today can be “retired” yet still earning income or working part-time — and that’s perfectly consistent with how the system views them.

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Ok, that was less than helpful.

Leave it to the government to have a mishmash view of something…or perhaps vague view of it is a better word.

With little help there, I entered what has normally been the Retirement Police’s fortress of defense and asked…

How do dictionaries define retirement?

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Dictionaries offer more traditional and concise definitions of retirement, generally focused on leaving the workforce, but even these are evolving. Here’s how leading dictionaries define “retirement”:

Merriam-Webster

Retirement (noun):

1. 1. The act of retiring: the state of being retired
   2. Withdrawal from one’s position or occupation or from active working life
   3. The age at which one normally retires
   4. A place of seclusion or privacy

Focus: Withdrawal from work or active duty

Tone: Neutral, formal — primarily work-related

Oxford English Dictionary

Retirement (noun):

1. 1. The action or fact of leaving one’s job and ceasing to work, typically upon reaching a certain age
   2. The period of one’s life after retiring from work

Focus: Stopping work, typically due to age

Note: Includes both the event (retiring) and the period (retired life)

Cambridge Dictionary

Retirement (noun):

1. 1. The act of leaving your job and stopping working, usually because you are old
   2. The period in someone’s life after they have stopped working

Focus: Ceasing employment due to age

Modern nuance: Acknowledges “period of life” as well, not just the action

Collins Dictionary

Retirement (noun):

1. 1. Retirement is the time when you stop working completely, especially when you are old
   2. The act of stopping work permanently

Focus: Total cessation of work, typically for older adults

Tone: More final and traditional

Common Threads Across Definitions

• • All definitions center on stopping or withdrawing from work
  • Most associate retirement with age
  • Some include retirement as a life phase, not just a one-time event
  • None require that you stop working entirely (though that’s the implication)

How They Contrast With Modern Reality

While dictionaries reflect the historical view, today’s retirees often:

• • Still work (part-time, freelance, passion projects)
  • Define retirement by financial independence, not age
  • Enter retirement in phases (semi-retirement, unretirement)
  • See it more as a freedom from necessity, not from work itself

So the dictionary definitions are technically accurate, but often incomplete in the context of how retirement works today.

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Not totally clear, but the definitions generally favor the Retirement Police’s point-of-view. This is almost always the case as dictionaries are often the last to recognize changes in language, and they usually do so when the vast majority of the public has been using the new definitions for some time. So no surprise there.

But interestingly, ChatGPT, as it’s prone to do, ended that section with a follow-up offer…

Would you like a rewritten “modern dictionary definition” of retirement that reflects today’s usage?

Why, yes I would, thank you…

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Great! Here’s a modern, rewritten dictionary-style definition of retirement that reflects how the term is commonly understood today—beyond just the traditional “stop working” meaning.

Modern Definition of Retirement

Retirement (noun)

1. 1. A stage of life marked by financial independence that allows a person to stop working full-time in their primary career.
   2. A flexible phase of life where work, if present, is optional, self-directed, and driven by purpose or enjoyment rather than financial necessity.
   3. The freedom to choose how to spend one’s time—whether through leisure, volunteering, part-time work, travel, creative pursuits, or continued employment on one’s own terms.

Compare to Traditional Definition:

“The action or fact of leaving one’s job and ceasing to work, typically upon reaching a certain age.”

Why This Modern Definition Matters:

• • Recognizes that retirement isn’t defined by age, but by autonomy and financial freedom
  • Acknowledges that many retirees still work—but they do so because they want to, not because they have to
  • Reflects the reality of phased retirements, encore careers, consulting gigs, and flexible lifestyles

Example Usage:

• • “After 30 years in tech, she retired—but still consults part-time for fun. That’s retirement on her terms.”
  • “He reached financial independence at 52 and retired early. Now he writes, travels, and works on passion projects.”

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Ok, with that amazing definition in hand, I forged ahead by asking the opinion of another retirement “expert”…

What does AARP say about working in retirement ?

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Here’s what AARP says about working during retirement—and how they frame the concept of retirement with work as both common and beneficial:

AARP on Working in Retirement

1. Many plan to work in retirement—and it’s expected

• • Over half (55%) of non-retired adults aged 50+ expect to continue working in retirement (32%) or never retire (23%) .
  • Among current retirees, around 12% are working, and a further 25% have worked or plan to work during retirement  .

2. Financial and nonfinancial motives

• • AARP research indicates that 42% of adults 50-plus are working in retirement or expect to do so for financial reasons .
  • Beyond money, many cite purpose, mental engagement, and social connection as key motivations .

3. Continued work improves satisfaction and well‑being

• • AARP’s “Why You Should Keep Working After Retirement” highlights that part-time, freelance, consulting work—or volunteering—can enhance retirement satisfaction, structure, and fulfillment  .
  • Program features like the AARP Job Board and employer pledge initiative support age‑friendly employment practices so retired individuals can continue working meaningfully  .

4. Working doesn’t mean you can’t receive Social Security

• • AARP’s latest guidance explains that you can still work while receiving Social Security benefits, though earnings before full retirement age may temporarily reduce your benefits  .

5. Older adults are working longer

• • AARP reports that many people are able to work longer because they’re healthier longer, driving a trend of retirees working well into their 70s and beyond  .

Key Takeaways

• • AARP views retirement not as a strict end to employment, but as a personal lifestyle choice that can include working in various forms.
  • Working during retirement is normalized, with strong evidence that mostly financial, but also emotional and social, reasons drive engagement.
  • They emphasize flexible and purposeful work, supported by resources like job boards, anti‑age-discrimination advocacy, and guidelines on blending earnings with Social Security benefits.

Here’s how AARP defines retirement, and the reasoning behind its evolving use of the term:

AARP’s Definition of Retirement

Evolution of the Name

• • In 1999, AARP officially dropped “Retired Persons” from its name—transforming from the American Association of Retired Persons to simply AARP.
  • This change reflected the realization that a large portion of its members were still working—many in their 50s and early 60s, and often planning to continue working during retirement years  .

Modern Viewpoint

• • AARP views retirement not as an abrupt stop to work, but as a fluid lifestyle phase.
  • Their resources emphasize that retirement means creating a meaningful life—whether through part-time work, volunteering, passion projects, or full leisure—and is about how you live, not just about stopping work .

Self-Determined Retirement

• • AARP materials note that retirement is highly individualized. Retirement can mean:
  • Pursuing a new career path or encore career
  • Adjusting gradually via semi-retirement
  • Staying engaged through consulting, mentorship, or flexible gigs
  • Or fully stepping away depending on your priorities .

Focus Areas in AARP Guidance

• • Their retirement planning tools (like calculators and checklists) help users define custom retirement paths—taking into account finances, health, goals, and personal definition of freedom.
  • Articles like “Embracing Retirement” emphasize finding personal meaning and balancing new time, whether that means work, volunteering, or leisure  .

Summary: AARP’s Lens on Retirement

• • Not a rigid status, but a shift in lifestyle.
  • Retirement means choosing how you live your life post-career, which may include work if it brings purpose, structure, or financial benefit.
  • It’s centered on personal goals and independence, not on age or complete withdrawal from work.

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Some thoughts on this…

• I like that AARP is 100% ok with working in retirement.
• That said, they say that many work in retirement because they must work, which we discussed earlier — and agreed that is not really being retired. If you must work, you are not retired.
• They mentioned the positive aspects of working in retirement, which we have covered as well.
• My guess is that their name change was motivated more by marketing/expanding their audience than anything else. Hahaha.

Ok, that’s it for this post. Next time we’ll ask some additional experts in retirement what they think about working after retirement. Once we hear from them, we’ll be ready to wrap up this topic.

To read more, check out part 3 here.