Pedestrian crossing - Florida-style
Merrill Lynch has teamed up with Age Wave to examine what is on the minds of those approaching and those in retirement. According to the study, Americans' Perspectives on New Retirement Realities and the Longevity Bonus, as individuals live longer, they are reinventing retirement and fulfilling dreams that were delayed during their working years. Retirees are staying stimulated through social networks. Happiness in retirement is defined less in terms of money and more in terms of "new experiences, peace of mind, helping family and making a difference."
Among the leading concerns for those surveyed are the following:
The report is very instructive because it takes a big picture view of retirement. Saving for retirement is an important goal, but it is helpful to understand the challenges that individuals face and will face in the years ahead.
Among the leading concerns for those surveyed are the following:
- Health challenges and the cost of healthcare are top of mind, even more so among the affluent. Only one in nine is totally confident in being able to pay healthcare expenses.
- Living longer also is leading to insecurity about affording the retirement years. Most do not want to be a burden on their families, but also do not want to sacrifice quality of life. Loneliness is a concern.
- With longer life spans, increasingly there are multiple generations living in the same household. Sometimes, the recent economic challenges have impacted more than one family member. Adults of retirement age may be supporting elderly parents as well as children, simultaneously.
- Where to live in retirement while possibly supporting older parents has crossed the minds of many people.
- Knowing what financial decisions to make is confusing to many, particularly as self-reliance has increased. The move away from pension plans and strains on programs such as Social Security have been contributing factors.
The report is very instructive because it takes a big picture view of retirement. Saving for retirement is an important goal, but it is helpful to understand the challenges that individuals face and will face in the years ahead.
