We know how to define retirement, but what does it actually mean to workers?
Transamerica Center for Retirement Studies (TCRS) decided to find out.
According to its new study, titled What Is “Retirement”? Three Generations Prepare for Older Age, workers most often associate retirement with the words freedom, enjoyment and stress-free, “despite the magnitude of preparations and challenges involved,” according to the organization.
“Retirement is no longer associated with a gold watch and metaphoric sunsets,” Catherine Collinson, CEO and president of Transamerica Institute and TCRS, said in a statement. “Today’s workers expect to extend their working lives beyond age 65. Their vision of retirement balances continued work with freedom and more time to pursue personal interests.”
Survey results
The survey finds:
- Eighty-six percent of workers cite positive word associations with “retirement,” compared with only 37 percent who cite negative words.
- Fifty-five percent of workers plan to work after they retire, including 41 percent who plan to work part-time and 14 percent full time. Among workers planning to work in retirement and/or past age 65, most plan to do so for financial reasons and almost as many for healthy-aging reasons.
- Forty-four percent of workers envision a phased transition into retirement during which they will reduce work hours with more leisure time to enjoy life, or work in a different capacity that is less demanding and/or brings greater personal satisfaction. Another 22 percent plan to continue working as long as possible until they cannot work anymore.
- The most often cited retirement dreams are traveling, spending more time with family and friends, and pursuing hobbies. Thirty percent of workers dream of doing some form of paid work such as pursuing an encore career, starting a business, and/or continuing to work in the same field. Twenty-six percent dream of doing volunteer work.
“Workers must take greater action in saving, investing, financially planning—and protecting their health—to successfully transform their visions of retirement into reality,” Collinson added.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
