The conventional wisdom about retirement is clear:
Work hard for decades, save diligently despite recurring financial crises, then settle into a life of leisure.
But that model is fundamentally broken.
The truth about retirement might surprise you. In a recent Business Insider article, Hannah Seo explores how the traditional American approach to retirement often leads to depression, isolation, and a profound loss of purpose.
The evidence is compelling, and it points to a better way forward.
The Problem with Waiting for “Someday”
Consider Russ Schmidt’s story.
After decades of dedicated work as both an administrator and nurse in San Francisco, he found himself cycling between bed and couch, watching Netflix, and sliding into depression just six months into his traditional retirement.
His experience isn’t unique. According to Seo’s reporting, about a third of American adults struggle with the transition to a work-free life.
But here’s what’s fascinating: The issue isn’t really about stopping work. It’s about how we think about work, purpose, and lifestyle in the first place.
Rethinking Work in the Digital Age
The reality of modern retirement presents both a challenge and an opportunity.
“People think that this transition is a piece of cake, and it’s not,” says Dee Cascio, a 78-year-old counselor and retirement coach. “It can feel like jumping off a cliff.”
But what if you didn’t have to jump? What if you could build a bridge instead?
Over my 19 years of running location-independent businesses, I’ve watched countless people transform their expertise into digital enterprises that provide both income and fulfillment. These ventures aren’t just businesses – they’re platforms for continued growth, learning, and impact.
The traditional retirement model was designed for a different era. When Social Security was established in 1935, the retirement age was 65, but life expectancy was only about 60 years. Today, we’re living to 79 on average, with many people remaining vital and engaged well into their 80s and 90s.
That’s not just extra time to fill. It’s an opportunity to reinvent how we work and live.
Creating Your Own Path
Paul Draper’s story offers an interesting perspective. At 68, rather than fully retiring from his software product management career, he designed a purposeful transition focused on learning and growth.
While he chose to explore various local jobs, the principle behind his approach is universal: retirement should be about expansion, not contraction.
The digital economy offers unprecedented opportunities to create this kind of purposeful transition. From consulting platforms to online courses, from digital products to remote services, the possibilities for building a location-independent business are vast.
I’ve witnessed this transformation firsthand while working from countries all over the world. The key is starting before you need to.
“Higher purpose in life is associated with reduced risk of heart attacks and strokes,” explains Eric Kim, an assistant professor of psychology at the University of British Columbia.
The research consistently shows that maintaining purpose, social connections, and intellectual engagement leads to better health outcomes and greater satisfaction in later years.
The solution isn’t to never retire – it’s to retire smarter. By building a digital business now, you create options for the future. You can scale up or down, work from anywhere, and maintain the social connections and intellectual stimulation that traditional retirement often lacks.
The Future is Already Here
The numbers tell the story: nearly 11 million Americans over 65 are currently employed, with that number projected to reach 15 million by 2032.
But there’s a crucial difference between working because you have to and working because you choose to, on your own terms, from wherever you want to be.
My advice is to start building your location-independent business now, while you still have the security of your current income. Create systems that can run from anywhere. Build networks that span the globe. Develop skills that will serve you in the digital economy.
The traditional retirement model asks us to abruptly stop doing what’s given our lives meaning for decades. Instead, why not create a new model that lets you do more of what you love, from wherever you want to be, while maintaining your sense of purpose and financial security?
The next chapter of your life is up to you. And the best time to start building your next chapter isn’t after retirement – it’s now.
America is doing retirement all wrong (Business Insider)
