“Retirement Survey Across Generations”

The definition of retirement is changing.  Baby Boomers are starting a new trend that says retirement might not mean sitting around and doing nothing.  In fact, for most, it is an opportunity to simply have more of a say on how their days are spent.  So, what exactly do most retirees look forward to doing as they enter into this exciting stage of life?  In this post, we explore the top 5 things that current and future retirees look forward to doing as well as highlight some interesting trends on a comprehensive retirement study recently conducted.  In an April 2019 study conducted by TransAmerica Center for Retirement Studies these items seem to be universal regardless of demographic, as the study was conducted across baby boomers, Gen Xers, and millennials.

What are the Five Things Every Retiree Wants?

1. Traveling – 67% of all workers envision a retirement with significant travel plans being fulfilled.
2. Spending Time with Loved Ones – 57% state that spending more time with their families will be a priority in retirement.
3. Pursuing Hobbies – In a mixture of both indoor and outdoor activities, 48% of workers want to pursue a hobby in retirement.
4. Working – In perhaps the biggest shift of how current workers view retirement is that working of some sort would be welcomed or necessary. 30% of workers see this as part of their retirement.
5. Volunteering – 26% of workers see themselves volunteering in some capacity in retirement.

One in Five People have a written Strategy for Retirement

While each generation sees the importance of being on track for retirement, only 20% have actually taken the time to develop a written strategy for their retirement.  Put another way, 80% of workers DON’T have a strategy when it comes to their retirement.  As a financial advisor this is both alarming and exciting.  The value of getting clear about what you (and your spouse) want from retirement is extremely helpful regardless of your age.  Additionally, it can oftentimes reduce stress as you see you aren’t as far behind as you may have thought.

We are Starting to Save Earlier

One very positive takeaway from the study is that workers are starting to save earlier and earlier for their retirement.  For the Baby Boomer generation, the average age they started to save for retirement was 35.  For Gen Xer’s this age was 30 and for Millennials it was 24.  The power of compounding interest is real, and it seems that with each passing generation they are taking this to heart earlier in their working careers.

Whether you feel comfortable and have a written strategy for retirement, or simply want a gut check to ensure you are on the right track, reach out to one of our financial advisors today!

August 23rd, 2019