The Retirement Syndrome: The Psychology of Letting Go

Oct 7, 2024 | Leadership transitions, Meaning and purpose, Psychodynamic method, Thought leadership

“Although it has often been said that when we grow old, we have to give up certain things, this statement should be reframed somewhat: if we fail to give up certain things, we grow old. The challenge, of course, is knowing what to give up, and how.”

“The Retirement Syndrome: The Psychology of Letting Go” by Manfred Kets de Vries explores the psychological challenges leaders face when they approach retirement.

The article identifies a phenomenon known as “retirement syndrome”, which describes the emotional and mental struggles that many leaders experience when they are forced to step down from positions of power. We revisit some highlights from this enlightening article below.

For older leaders, the prospect of retirement can bring an acute awareness of the losses – both past and potential – that come with stepping down. The fear of losing their sense of purpose, social connections, and the trappings of power can be overwhelming, leading many to delay retirement as long as possible.

Retirement is not just a financial or social transition but a deeply psychological process that can be fraught with difficulties. Leaders often derive a significant part of their identity from their roles and the power, influence, and recognition that come with them. The prospect of losing these can be terrifying and disorienting, leading to resistance and even denial about the need to retire.

There are a number of barriers to letting go (which are explored in more detail in the full article). These include:

  1. Financial Concerns: Even financially secure executives may worry about maintaining their lifestyle post-retirement, which can contribute to reluctance to step down.

  2. Social and Psychological Barriers: Leaders often fear losing their social status and the daily structure that work provides. The absence of a clear role can lead to feelings of nothingness and existential anxiety.
  3. Physical and Psychological Effects of Aging: Aging can exacerbate fears of irrelevance and decline, making the idea of retirement even more daunting.
  4. The Talion Principle: This refers to a subliminal fear of reprisals from successors or others once they are no longer in power, which can lead to anxiety and paranoia.
  5. The Edifice Complex: Many leaders have a strong desire to leave behind a legacy, which can make them cling to their roles longer than they should, fearing that their achievements will be forgotten or dismantled.

The CEO Blues is a specific manifestation of retirement syndrome that affects those who have held power for an extended period.

CEOs often experience a lifecycle in three stages: entry, consolidation, and decline. The decline stage, where creativity and effectiveness diminish, is particularly challenging. Some CEOs, having reached the pinnacle of their careers early, face a long and difficult decline that can lead to burnout, depression, and a sense of having peaked too soon.

The challenges of retirement are not inevitable, however, and with proper preparation, individuals and organisations can develop more effective and humane disengagement strategies. For example, leaders can:

  • Diversify their identities beyond their work roles, investing in relationships, hobbies, and other interests that can provide fulfilment after retirement.

  • Plan for the future well before retirement becomes imminent, ensuring they have a clear vision of what their post-retirement life will look like.
  • Engage in self-reflection to understand their fears and motivations, allowing them to address these proactively rather than being driven by them subconsciously.

While letting go is never easy, it is an essential part of life, and with the right mindset and support, leaders can transition into retirement with grace and dignity, avoiding the pitfalls of retirement syndrome.

This summary touches the surface of the discussions included in the full article. Interested in reading more? Read The Retirement Syndrome in its entirety here.

Leadership transitions in general, whether it is stepping into new roles, ways of working, or retirement, presents the challenge of navigating uncertainty and potential resistance. However, it also offers the opportunity for fresh perspectives and innovation, enabling growth and revitalisation. KDVI’s Quo Vadis: Leadership Reflection Circles provides small group coaching for leaders at career inflection points.

Oriane Kets de Vries:

Oriane Kets de Vries is CEO and owner of the Kets de Vries Institute. She leads a global team of coaches, consultants and educators dedicated to developing reflective, emotionally intelligent leaders and cultivating workplaces where people can thrive. In her faculty role, she draws on extensive experience designing and directing leadership programmes for senior executives, contributing her expertise in psychodynamic coaching, organisational culture, and transformational leadership development.

Oriane has served as consultant, coach, and programme director for clients including Pictet, Deutsche Bank, Merck, UBS, Mishcon de Reya, and Engie, and she has taught on open-enrolment programmes with leading institutions such as Cambridge Judge Business School, Oxford Saïd, INSEAD, ESCP, ESMT and CEDEP. Her interests centre on the human side of leadership, particularly identity, creativity, entrepreneurship and gender dynamics. She holds an MBA and Executive MA in Coaching and Consulting for Change from INSEAD, has trained at the Harvard Kennedy School, and brings more than a decade of professional experience in creative and entrepreneurial industries into her work with leaders.

Manfred Kets de Vries:

Manfred Kets de Vries is a pioneering authority in leadership development, coaching, and organisational change. He is a founder and director of the Kets de Vries Institute (KDVI) and served as Distinguished Clinical Professor of Leadership Development and Organisational Change at INSEAD. With academic credentials in economics (University of Amsterdam), management (MBA and DBA, Harvard Business School), and psychoanalysis (trained in Canada), he brings a uniquely interdisciplinary perspective to leadership. His work bridges management theory and clinical insight, establishing him as a global thought leader in executive coaching and transformation. At INSEAD, he founded the Global Leadership Centre and led the flagship programme The Challenge of Leadership for 31 years. He also served as scientific director of Coaching and Consulting for Change, an 18-month Executive Master’s programme that has shaped over 3,000 senior leaders and executive coaches worldwide. He has advised and coached senior executives at global firms including Goldman Sachs, BP, Shell, Unilever, McKinsey, and Volvo. A prolific author of over 60 books and 400 articles, his work appears regularly in The Financial Times, The Economist, and Harvard Business Review. Recognised by Le Capital, Wirtschaftswoche, and The Financial Times as one of the world’s top 50 management thinkers, he is widely regarded for advancing more human-centred approaches to leadership.

Yulia Chupina:

Senior Adviser (Luminary) at Accenture and executive coach with over 12 years of board experience. Formerly a banker and McKinsey consultant, Yulia has led banking transformations in digital, agile, organisational change, and talent development. Her coaching spans the finance, tech, and consumer goods sectors, blending technological insight with emotional intelligence to guide leaders through transformation. Recently, she advised BBVA on agile methodologies and senior talent development. Influenced by thought leaders such as Manfred Kets de Vries and Gabor Maté, Yulia brings an analytical, reflective approach to leadership. She has lived and worked across the UK, Spain, the US, and Russia.

Elizabeth Florent:

Elizabeth has worked closely with Manfred Kets de Vries for many years and has served as a Senior Lecturer and Research Fellow at INSEAD. Her extensive background in leadership development spans organisational consulting, executive coaching, and academic research. She holds advanced degrees in Organisational Development and Clinical Organisational Psychology and is a certified Coaching Supervisor through the Tavistock Institute. Her doctoral research explored experiential domains in executive education, and she has authored or co-authored numerous academic articles, case studies, and books on leadership and organisational dynamics. Elizabeth led the development teams behind KDVI’s diagnostic instruments, including the GELM, OCA™, and ITI. Drawing on her diverse training and global experience, she brings deep cross-cultural insight to her work with leaders worldwide. Originally from California, Elizabeth has made France her home for over 30 years.