Maslow’s original hierarchy is a handy way to think about whether early retirement is a step toward something meaningful or just an escape from stress. I could use all the help I can get figuring that out. Between COVID-19, systemic racism, and family illness, 2020 turned out very differently than I expected.
If you’ve read this blog before, you know I planned to retire a few years before 50. Well… I’m still answering emails and sitting in meetings—now from a finished basement. Take a look at your own list of “big things to do.” Maybe it’s climbing Kilimanjaro, running a marathon, or writing a book. By the time early retirement comes up, you’ve likely hit some big life milestones: degrees, stamps in your passport, volunteer time. Those things boost your esteem.
Self-actualization is the hardest level. I’d bet few people spend as much energy there as they’d like. I count myself lucky to have worried about accomplishment and esteem at all. Sadly, many people are still fighting just to meet basic needs like food, water, rest, and safety.
Maslow’s 1943 idea was that we climb a ladder of needs, moving from one level to the next only after the last is met. In reality, life is messier. Maslow later said people move up and down the pyramid as situations change—war, famine, or disaster can knock us back to needs we’d taken for granted.
Let’s focus on the top three levels. If you have “F-you” money, you’ve probably met basic physiological and safety needs. People still worry if they’ve saved enough to leave work, so we’ll come back to money. For now, three things to ask yourself before retiring:
On the surface, early retirement should free time and energy for things we let slide. With time, you might travel longer, train for a marathon, or work on a hobby. I learned to land a tennis serve during a year I was laid off.
From a belonging angle, early retirement isn’t as odd as it used to be. Financial bloggers and others meet at conferences and regional retreats; communities form. You’re not the only one taking a 10 AM walk while everyone else is at the office.
So is early retirement a result of Maslow’s hierarchy, an enabler of it, or both? It depends. I’ve met people fully self-actualized who never retire, so retirement might not be the key.
Assume you do quit. What does your pyramid look like then? Have you truly moved up, or just swapped old needs for new ones? Worse, have you not changed anything—or even slid down a rung?
Okay, this is a simplified, somewhat tongue-in-cheek version of Maslow’s pyramid, but it’s mine. Let’s assume early retirement brings its own set of needs once you’ve hit financial independence.
At the bottom: Money. In early retirement, you still worry if your savings will last. If money haunts you after leaving work, you probably shouldn’t have quit. If you’ve got solid side income and a healthy nest egg, money becomes easier.
Next: Health. Healthcare isn’t a free public good—make sure your coverage is sorted and build healthy habits. Read Blue Zones and then get moving. Health is where early retirement can really pay off. Once the money question is settled, you have time and energy to exercise, sleep better, and feel physically strong.
Relationships follow. With more time and energy, you can invest in friends, family, and mentors. This rung is tricky and full of trade-offs, but it’s often the most rewarding. Once money and health are in order, make relationships a priority—neglect here leads to regrets.
Many people would be satisfied with money, health, and strong relationships. After that comes Mobility. The freedom to move or travel is a real luxury. A recent wild blizzard in Minnesota reminded me how much location affects my mood. I may keep Minneapolis for roots, but I’ll spend winters somewhere warmer. Mobility competes with Relationships for my attention and resources.
At the top is Purpose. Reach this level and you can truly give time and energy to causes and people who need it. Some will choose mobility but stay put to deepen relationships and help others. Ultimately, peace is the goal—peace with leaving the workforce, peace with others, and peace with your own limits. When you’ve prepared well and invested in the right relationships, you can look back without regret.
You can also work for decades and still meet self-fulfillment needs. Entrepreneurs and passionate achievers often find the balance they need. The challenge for most is that careers demand a lot over the long run, making it hard to satisfy the hierarchy when your time is tied up in work.
The takeaway? Whether you work a cubicle job or retire early, your needs still need filling. The big question: does early retirement help you rise a level, or does it just create new needs you didn’t expect?
Maybe tomorrow you’ll find time for coffee with a coworker or ride your bike to work. I’d love to hear how you answer this. Since I started this journey four years ago, I’ve changed my mind a lot. The happiest countries—Denmark and others—don’t prioritize early retirement because their needs are met during work. The longest-living, healthiest people often keep working until the end. So maybe it’s not work that matters so much as how needs are met. If people are happy and healthy without early retirement, why are we chasing it so hard, especially if it doesn’t always deliver the promised benefits?