Due to the development trend of population aging and the gradual implementation of delayed retirement policy, many organizations rely more on the value and contribution provided by older employees or employees approaching retirement. The research on the motivation, attitude and behavior of this group has attracted more and more attention. In the actual management activities, because the employees approaching retirement are impacted by the psychological and node event of retirement, there are changes in their cognition, motivation and behavior that lead to the decline in job performance, such as the expectation of retirement, the identification with the approaching retirement, the decline in work-related psychological commitment, and the behavior of job withdrawal and slack. On the basis of retirement research and work motivation research of older employees, this study puts forward a concept of psychological retirement to summarize and theoretically abstract this phenomenon. In addition, through grounded theoretical research, a six-factor model of psychological retirement of retired managers is proposed, which are the cognition of retirement time, cognition of individual matching, decline of growth motivation, priority of emotion regulation, behavior of job withdrawal, preparation of retirement plan. On this basis, this study made an empirical test on the psychological retirement scale for retired managers. Besides, corresponding management suggestions are put forward for psychological retirement. In conclusion, based on the literature analysis and the management phenomenon that some retired managers have a negative and lazy mentality in reality, this study proposes and defines the concept of psychological retirement. Besides, the psychological retirement scale was developed using empirical research methods and answered the theoretical problem of “ what is psychological retirement?” and “ what does psychological retirement include?”. These two theoretical problems can provide a new theoretical perspective for the study of the work motivation of the retired group and older employees, and also provide a reliable assessment tool for the assessment and measurement of the psychological retirement of managers approaching retirement.