Why Retirement Goals, Like New Year's Resolutions, Often Fail

A happy retired couple hug in the kitchen while looking out the window.

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Imagine it’s January 1, the start of a new month or even the first day of your retirement. You’re excited for a fresh chapter, convinced that this time, you’ll finally achieve the goals you’ve been dreaming about. Maybe you’ve resolved to get in shape, spend more time with loved ones or finally take up that long-desired hobby.

For the first few weeks, everything seems to be on track. You’re motivated, energized and making progress. But before long, the excitement fades, and those goals slip away.

If this sounds familiar, you’re not alone. Studies show that 91% of New Year’s resolutions fail — and many of the same pitfalls apply to retirement goals. Whether you’re starting a new year or a new phase of life, the problem often lies in focusing too much on the outcome and not enough on the habits that make those outcomes possible.

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In his bestselling book Atomic Habits, James Clear says it best: “You do not rise to the level of your goals. You fall to the level of your systems.” In other words, achieving your retirement dreams — or any goal — requires more than good intentions. It requires small, consistent habits that build up over time.

In this article, we’ll explore why goals often fail in retirement, the psychological traps that can derail us and practical strategies for creating habits that can make retirement fulfilling.

The problems with retirement goals:

1. Focusing on outcomes, not processes

Many of us enter retirement with lofty goals: travel to new places, volunteer, exercise regularly or reconnect with old friends. These are all wonderful aspirations, but like New Year’s resolutions, they focus on the outcome (what you want to achieve) rather than the process (how you’ll get there).

For example, let’s say you want to get in shape during retirement. You might join a gym or sign up for fitness classes, but without building sustainable habits — like setting aside time each day to move your body or finding enjoyable activities — you might give up after a few weeks.

Author Clear explains, “Goals are good for setting a direction, but systems are best for making progress.” In other words, your retirement goals will be successful only if you have a system of habits to support them.

2. The 'finish line' mentality

Retirement is often seen as the ultimate “finish line.” After decades of hard work, it’s easy to think that stepping away from your career will automatically lead to happiness and fulfillment. But just like achieving a goal, retirement isn’t a one-time event — it’s an ongoing process.

Clear writes, “The purpose of setting goals is to win the game. The purpose of building systems is to continue playing the game.” This is especially true in retirement. If you set a goal to travel but don’t build the habits of planning trips, budgeting and maintaining your health, that dream may never fully materialize. Similarly, if you dream of writing a book or learning a new skill, you’ll need the daily systems to make those ambitions a reality.

3. Relying on motivation alone

When we approach retirement — or any significant life change — we often rely on the excitement of the moment to fuel our efforts. At first, motivation is high, and it’s easy to feel inspired. But as the novelty wears off, that initial enthusiasm fades. Sticking to your goals becomes increasingly difficult without a plan or system in place.

This can lead to aimlessness or frustration in retirement. The days begin to blur together, and those big dreams you had for your post-work life remain out of reach.

How to build habits for a fulfilling retirement

The key to maximizing your retirement lies in shifting your focus from achieving specific goals to building daily habits that align with your values. Habits are the small, consistent actions that, over time, lead to big changes. Here’s how to build habits that last:

1. Focus on identity, not outcomes

Instead of asking, “What do I want to achieve in retirement?” ask, “Who do I want to become?” This subtle shift can make all the difference.

For example, instead of setting a goal to “exercise more,” focus on becoming a healthy, active retiree. Instead of resolving to “write a book,” identify as a curious, creative person who enjoys writing. When you focus on identity, your habits naturally align with the type of person you want to be.

As Clear explains, “Every action you take is a vote for the type of person you wish to become.” Thus, each time you go for a walk, write a paragraph or spend quality time with loved ones, you reinforce your new identity.

2. Start small

One of the biggest mistakes people make when setting resolutions or retirement goals is trying to do too much at once. Clear encourages starting small: focus on improving just 1% each day.

For example, if you want to improve your fitness, start by walking for 10 minutes a day rather than committing to an hour-long workout. If you want to write a book, start with 100 words a day rather than aiming for entire chapters. Small, consistent actions are easier to stick with, and over time, they compound into meaningful results.

3. Leverage the habit loop

Clear breaks habits into a simple framework: Cue, Craving, Response and Reward. Understanding this loop can help you build good habits and break bad ones.

Cue: A trigger that prompts the habit
Craving: The desire or motivation to act
Response: The action you take
Reward: The positive outcome that reinforces the habit

For example, if you want to start exercising in the morning, your cue might be placing your workout clothes by your bed the night before. The craving is the desire to feel energized, the response is completing the workout, and the reward is the endorphin boost and sense of accomplishment you feel afterward.

4. Design your environment

Your environment plays a huge role in shaping your behavior. If you want to make good habits easier, adjust your surroundings to support them.

For example, if you want to read more, keep a book on your nightstand, instead of your phone. If you want to eat healthier, stock your kitchen with nutritious snacks and remove junk food. By designing your environment, you reduce reliance on willpower and make it easier to stick to your habits.

5. Habit stacking

Habit stacking is a technique where you attach a new habit to an existing one. Clear explains, “After [current habit], I will [new habit].”

For example:

After brushing my teeth, I will go for a 10-minute walk
After my morning coffee, I will write in my journal for five minutes
After finishing lunch, I will spend 15 minutes practicing guitar

By linking new habits to familiar routines, you make them more automatic and easier to maintain.

A final thought: Habits create a purposeful retirement

Retirement is often seen as a time to relax, but it’s also an incredible opportunity to grow, explore and redefine yourself. The key is to focus less on grand goals and more on the small, consistent habits that shape your daily life.

Instead of asking, “What do I want to achieve in retirement?” ask, “Who do I want to become in this chapter of my life?” Then, start casting small votes for that identity every day.

As Clear reminds us, “Habits are the compound interest of self-improvement.” Whether it’s January 1 or the first day of retirement, it’s never too late to build habits that last and create a meaningful and fulfilling life.

To learn more about the psychology of retirement, subscribe to my podcast “How Not To Retire: A Psychological Approach to a Health & Wealthy Retirement (HowNotToRetire.com).

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Dr. Richard Himmer is a seasoned professional with expertise in Emotional Intelligence (EI), Clinical Hypnotherapy and Workplace Bullying prevention. He holds an MBA, a master’s degree in psychology and a PhD in Industrial and Organizational Psychology. He combines academic knowledge with practical experience. His doctoral dissertation focused on the Impact of Emotional Intelligence on Workplace Bullying, showcasing his commitment to understanding and addressing complex workplace dynamics. Dr. Himmer leverages the subconscious (EI) to facilitate internal healing, fostering healthy interpersonal relationships built on trust and respect.