Buzz
Envisioning retirement is tough enough for most people, let alone the idea of retiring early. Even so, a number of individuals have succeeded in quitting their jobs and attaining financial independence before reaching 40, or even earlier. The thought of lounging on the beach at just 30 sounds like a dream, but there are hidden challenges to this lifestyle too.
I first came across the idea of early retirement on the finance blog Mr. Money Mustache. Peter Adney, a blogger-turned-personal finance expert, achieved early retirement by 30, thanks to his high savings rate and extreme frugality. He believes that most of us could do the same if we took charge of our finances instead of blaming external circumstances. Although I find this viewpoint somewhat oversimplified, it hasn’t deterred others from pursuing the same goal, including the mostly anonymous blogger Brian from Done By Forty.
In his journey to retire by 40, Brian provides a comprehensive look at what early retirement truly entails. He shared with us:
As bloggers focused on early retirement and financial independence, we do a great job of highlighting the rewards these goals bring: more time with loved ones, the freedom to engage in activities without the stress of earning a paycheck, and the assurance of having a financial cushion that can cover expenses indefinitely. However, we tend to overlook the potential risks associated with such a significant life transition like early retirement.
In a recent post, he outlines one of these risks: early retirement could potentially affect your cognitive abilities.
The Link Between Retirement and Cognitive Decline
There are several studies, most notably the Health and Retirement Study, that suggest a connection between cognitive decline and retirement in general. This phenomenon is referred to as mental retirement, and it might impact younger retirees more severely.
Referring to a study published in the Journal of Economic Perspectives, The New York Times reported (emphasis added):
The researchers found a clear connection between the proportion of people working at ages 60 to 64 in a country and their performance on memory tests.
The longer people in a country remain employed, the better they tend to perform on memory tests when they reach their early 60s, as a group.
The study utilized a memory test that asked participants to recall a series of words, then compared individuals from different countries, some of which encouraged early retirement. They discovered that those who retired early scored notably lower than those from countries where retirement was delayed.
“My sense is that the memory test reflects only the tip of the iceberg: a small indication of broader mental decline,” Brian writes in his post. Of course, correlation doesn’t imply causation, and memory tests are merely one way to gauge cognitive function. Other experts have made similar observations. As one researcher told the Times:
It’s a compelling finding, but it’s not the entire picture. This is just an initial observation. It needs to be followed by more research.
That being said, the authors of the Mental Retirement study seem quite confident that a causal link does exist. They offer several reasons why early retirement might negatively impact our cognitive abilities.
How 'Mental Retirement' Takes Place
Without convincing evidence on how to effectively counteract those risks, the best strategy I can think of is to maintain some form of work in my life.
This could be a case of 'use it or lose it.' The earlier you stop engaging with mental challenges, the worse your cognitive abilities might decline by the time you're in your 60s. We tend to learn more easily when we're younger, so opting out of learning early on means missing out on the opportunity to enhance our cognitive skills later in life. They say if you want to preserve cognitive functions like memory, staying active is key.
The mere thought of early retirement might drain a worker’s motivation,” Brian shared with us. “Why tackle challenging projects or pick up new skills when you're fifty, yet plan to leave the workforce in five years?” In other words, the effects of mental retirement may begin before you even step away from your job.
If these studies are accurate, that means if you retire in your 30s or 40s, cognitive decline could start even before that.
My perspective on early retirement has changed quite a bit since writing
the post
,” Brian shared. “The research seems to suggest that some form of work should be part of your early retirement plans, which is both ironic and perhaps a bit unfortunate. But the risk of cognitive decline is too significant. Until there's more compelling research on how to effectively mitigate these risks, the best strategy I can think of is to incorporate some kind of work into my life.”
As much as we gripe about work, there seems to be a benefit: it helps us stay sharp. Of course, the solution isn’t so simple. Not every job is mentally stimulating, for instance. And working nonstop just to keep sharp doesn’t sound like an ideal solution either.
What Can We Do About It
Our plan now is to incorporate meaningful work into my retirement, irony be damned.
The thing is, this isn’t just a concern for early retirees. It might affect all of us. Rachel Wu, a psychology professor at the University of California-Riverside argues that we all experience cognitive decline as adults due to the way we approach learning.
As children, we're encouraged to embrace a wide variety of learning: juggling multiple skills at once, making mistakes along the way, and having an open-minded approach to education. However, as adults, the focus shifts to specialized learning: we’re expected to commit to a single career, a specific role, and if we stumble, the stakes are high, such as the risk of losing a job.
Looking across the entire lifespan, from infancy onward, it appears likely that the reduction in broad learning plays a causal role in cognitive aging. But if adults were to engage in more varied learning experiences—similar to those in early childhood—they could push their cognitive abilities beyond the current limits,” Wu stated in a
statement
.
In simpler terms, Wu suggests that, whether retirees or not, we can keep our minds sharp by picking up multiple skills, stepping out of our comfort zones, and embracing our mistakes.
When I started the blog, my idea was to add more
activity variety
to my life: simply balancing my twenty-four hours between things I enjoy, like board games or naps,” Brian shared. “But the more I reflect on it, the more that idea feels aimless—too focused on rest and leisure. So, our current approach is to integrate meaningful work into my retirement, irony aside.
The real answer seems to be less about working during retirement and more about ensuring that we remain engaged in stimulating activities once we retire.
To stay mentally sharp, early retirees need to look past the conventional idea of simply 'sipping drinks on the beach' during their retirement. That’s why many early retirees, including Mr. Money Mustache, prefer the term 'financially independent' instead.
Brian admitted, “The truth is, I’m still not entirely sure what that life will look like.” He added, “It turns out that realizing you don’t want to work a traditional job until you’re 65 is different from figuring out what you’d rather do instead.”
