This study is a pioneer study examining the significance of retirement in terms of lost investments and outcomes. Research findings on the output of academic faculty and on measures of excellence in higher education indicate that upon retirement the academic institution as an organization loses not only faculty who are still capable of contributing both to research and to teaching, but rather also two other important products: valuable knowledge and experience accumulated by senior faculty in the academic system in light of the institution's investments in them. 107 questionnaires were collected from senior faculty members in a case study of one academic institution. A combined research method was utilized, consisting of qualitative and statistical analysis, with the aim of exploring the significance of retirement in terms of lost input and output, as perceived by academic faculty members. The research findings indicate that indeed, as perceived by the faculty, academic institutions as an organization lose faculty who are still capable of contributing to both research and teaching, as well as valuable knowledge and experience accumulated by senior faculty members within the academic system, after being nurtured by the academic institution.