For years, the FIRE movement has promoted strategies for leaving the workforce before reaching traditional retirement age. FIRE, which stands for “financial independence, retire early,” focuses on saving aggressively, investing and building enough wealth to become financially independent. People hoping to spend more time with family, travel, or pursue personal interests, volunteer work or entrepreneurship may turn to FIRE as a way to reshape their lifestyle.
While gaining more free time may seem like a clear benefit, an April 2026 working paper from the National Bureau of Economic Research found that among Americans ages 51 to 64, leaving employment was linked to measurable cognitive decline. The researchers found that continued employment was associated with stronger sustained cognition.
The study analyzed data from approximately 40,000 participants in the University of Michigan’s Health and Retirement Study to examine how cognitive performance changed following major shifts in employment. “One risk of losing jobs at pre-retirement ages involves faster cognitive decline into older ages (compared to persons who keep their job),” said Tim Bruckner, co-author of the paper, in an email.
The researchers examined how cognition changed after major disruptions in employment and found “substantial declines” in cognitive scores following negative employment shifts. The study adds to evidence that continued employment is associated with better cognitive outcomes over time. While retirement has often been viewed as a reward after decades of labor, the findings suggest that a sudden exit from work may be associated with cognitive costs for some people.
[Read: 7 Lessons From Those Who Retired by FIRE]
The Relationship Between the Brain and Work
For decades, scientists have understood that activities such as mental engagement, problem-solving and social interaction are beneficial for the brain. A workplace generally provides regular cognitive challenges and social contact that keep the brain active.
David Neumark, a professor of economics at the University of California, Irvine and co-author of the study, warned that large-scale declines in employment among older adults could have serious long-term consequences, both in economic and cognitive ways. The concern is particularly relevant for Gen X workers approaching retirement. Many do not have pensions outside of Social Security, and some may claim benefits early at age 62 rather than waiting until full retirement age or age 70, when monthly benefits are larger.
At the same time, cognitive decline carries economic and personal costs. Alzheimer’s disease and related dementias are estimated to cost the U.S. economy hundreds of billions of dollars annually through healthcare expenses, lost earnings and unpaid caregiving.
The findings do not suggest that people should never retire, and they don’t encourage staying in an unhealthy work environment. Workers who stay employed could still experience downsides such as burnout or sleep deprivation, which impact overall health.
“One important issue is that retirement is often partly shaped by underlying health problems to begin with,” said Sae Hwang Han, associate professor in the Department of Human Development and Family Sciences at the University of Texas at Austin, in an email. “Some individuals leave the workforce early because of emerging physical, mental or cognitive difficulties, which can make it challenging to fully separate the effects of retirement itself from the health issues that contributed to workforce withdrawal in the first place.”
[READ: The Pros and Cons of Early Retirement]
How to Pursue FIRE the Right Way
Those pursuing the FIRE movement and planning to leave the workforce early should look for ways to stay active. “My own work has shown that activities involving meaningful and stimulating social interaction — whether through volunteering, helping others informally, spending time with friends and family, or staying connected within one’s community and neighborhood — are associated with better health and cognitive outcomes in later life,” Han said. “Importantly, the benefits do not necessarily require highly intensive involvement; even modest but consistent engagement (e.g., several hours per week) in meaningful activities can be valuable.”
There are guidelines to ensure the activity you’re doing is beneficial. “It’s important that you enjoy it, it stimulates your brain, your brain is supported (with good nutrition), and that it does not cause stress,” said Dr. Dale Bredesen, chief science officer at Apollo Health, in an email.
“Within these boundaries, there are hundreds of things to do, from new hobbies to brain training on the computer to mahjong to learning a new language to learning to play a new musical instrument to playing bridge to playing chess to (light therapy) to socializing to building a car to learning the latest in nutritional food preparation, and on and on,” he said.
Retirees have a wide range of options for staying engaged and supporting brain health, including the following:
Stay Mentally Active
Early retirees can learn new skills, read more, take free college or community classes, or try new hobbies. Activities such as learning a language, studying music, playing strategy games or even starting a small business can help keep the brain challenged and engaged over time.
Maintain Social Connection
Retirees can look for ways to interact with others every day in their neighborhoods or communities. Maintaining close relationships with family and friends may also support emotional health and reduce feelings of isolation.
Consider Phased Retirement
Rather than leaving work abruptly, some people may benefit from gradually reducing hours or shifting into part-time roles. Maintaining a schedule could help workers stay focused and active.
Look for Purpose
People who thrive in retirement often move toward something meaningful instead of simply away from work. Those who have a sense of purpose often have a higher overall well-being.
Prioritize Physical Health
Taking regular walks, strength training and eating healthy may all help support long-term brain health. Getting enough sleep can also impact the overall quality of life.
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Is ‘Financial Independence, Retire Early’ Bad for Your Brain? What the Science Says and How to Do It the Right Way originally appeared on usnews.com
