Royal Engineers, worn out, stopped work (7)

I believe the answer is:

retired

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'stopped work' is the definition.
'retired' can be an answer for 'stopped' (retiring is a kind of stopping). I'm not certain of the 'work' bit.

'royal engineers worn' is the wordplay.
'royal engineers' becomes 'RE' (abbreviation).
'worn' becomes 'tired' ('tire' can be a synonym of 'wear').
're'+'tired'='RETIRED'

'out' acts as a link.

Can you help me to learn more?

(Other definitions for retired that I've seen before include "claiming a pension?" , "In bed, withdrew" , "Stopped working" , "Ceased working" , "went back" .)

I've seen this clue in The Telegraph.

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