To me, it's a balancing act. I look and feel better, and get treated better, when I dress up just a little, like instead of wearing a fleece and jeans, I can wear slacks, an open button-up shirt with a collar, and a sports jacket. Mostly, people rarely wear a jacket and tie to church these days, unless it is a wedding or funeral, so fully dressing up is awkward if you're going to the hardware store or grocery. Besides which, if I get home and have to do chores, I don't necessarily want to have to change clothes.
I think people have to be careful when they retire. There is a pleasurable period when it is delicious to get up and put on a sweatshirt and sweat pants Monday morning and every day for the next three weeks. But after a while, you might want to re-join the world, and dress at least casual business most days.
Some people never want to dress up, ever, at all, and that is their decision. For my morale, I find I'm happier if I dress up a notch or two, usually, when I leave the house. On the other hand, knotting on a tie, which used to be daily apparel for me, is a decision. Do I really want to do this? Why? If i dress up, it is usually for my wife, even if we are just having supper at home.