My wife & I are both retired. (Actually I haven't been employed for 20 years.) I only leave home to walk the dog & to accompany my wife to run errands. (Once in a while I do have to get my hair cut or go to the dentist.) We have no extended family & I have no friends or even acquaintances really, by choice. No one who really knew me would want to have anything to do with me. So I prefer to spare them the inconvenience. I consider it to be my gift to the world... or at least that tiny portion of it I inhabit. (I also limit my contact with other members here on PC. And I'm not active on any other websites.)

You asked if isolating yourself is bad for you. I think it can be. For one thing, the longer you do it, the more difficult it is likely to become to start socializing again. Also, at least based on my own experience, it tends to magnify whatever mental health or other problems you may have because you don't really have anything else going on in your life to think about. Plus, if you happen to be a little bit warped to begin with (as I am) it tends to cause those issues to become more prominent. Being out-&-about in public tends to have something of a "normalizing" effect on a person I think. But if you spend large amounts of time alone aspects of your persona you might have kept submerged as a result of being out in public on a regular basis have a way of floating to the surface. At least that has been my experience. (I'll spare you the details.)

So I would say, unless you're really committed to a reclusive lifestyle, it would really be best for you to find some "social" outlets... become more involved with your church, do some volunteer work, find some type of job you can handle... perhaps something part-time if that's preferable for you, join a club or service organization or whatever. But, at least based on my own personal experience, I would say isolating yourself at home is not the best idea unless you're really committed to being a hermit.