Americans want to live longer–as long as it’s a healthy life.
A new report found that nearly seven in 10 Americans (69%) want to live to age 100. And of those, respondents said that they hope to live longer because they want to spend more years with family and friends (35%), they are enjoying life and want to continue doing so (23%), they are curious about the future (19%) and there is so much more they want to do (18%).
The joint survey by financial services firm Edward Jones and Age Wave, an organization that reports on the socio and financial effects of an aging population, reported that retirees now say the ideal length of retirement is 29 years.
However, health concerns in retirement and quality of life affected responses. About a third indicated that they would not want the extra longevity if they were suffering with terrible health (32%), if they became a burden on their families (29%), if they had serious cognitive loss like that of Alzheimer’s disease (20%), or if they no longer had purpose in life (14%).
“Today’s retirees enjoy a growing array of opportunities to stay engaged, possibly reinvent themselves and enjoy the freedoms of this stage of life. This is definitely not their parents’ or grandparents’ retirement,” said Ken Cella, Principal, Branch Development for Edward Jones.
“At the same time, they face new challenges, especially around their health, their finances and finding a new definition of purpose.”
Defining what retirement means
When asked about their own retirement today, a little more than a quarter see today’s retirement as ‘a time for rest and relaxation,” unlike what they saw as their parents’ version of retirement. More than half (55%) define retirement as “a new chapter in life.”
A majority (59%) want to work in some way during their retirement, with 22% looking to work part time, 19% hoping to cycle between work and leisure and 18% wishing to work full time.
As to what Americans define as the start of retirement, the top responses included stopping full-time work (34%), receiving Social Security and/or a pension (22%), leaving one’s job/career (17%) and achieving financial independence (17%). Surprisingly, only 10% said the start of retirement meant reaching a certain age.
And regrets? There is at least one: Retirees say they started saving for retirement at age 38 on average, but in retrospect, they should have started saving nearly a decade earlier, at age 29.
To each, their own retirement path
The research attempted to define four distinct journey paths characterized by people’s attitudes and ambitions, retirement preparations and their level of enjoyment of life in retirement.
- Purposeful Pathfinders: This group enjoys the greatest well-being in retirement and is happy, engaged, productive and contributory. They are best prepared for life in retirement and 78% say they are in great shape financially. They began saving for retirement earlier than all the other groups, on average at age 34.
- Relaxed Traditionalists: Pursuing a more traditional retirement of rest and relaxation, this group had a smooth transition and are well-prepared. Most (81%) retired when they chose, and while they are the most open to relocating, including to adult-living communities, they have fewer aspirations for personal growth or giving back than Purposeful Pathfinders.
- Challenged yet Hopefuls: This group leads active lives and have focused on self-improvement, but their lives in retirement are constrained and uncertain due to insufficient financial preparation. Half say they often worry about outliving their money and this taints nearly all their future hopes. They began saving for retirement later than all the other groups, at age 45, and over half with retirement accounts (54%) have made early withdrawals along the way.
- Regretful Strugglers: The largest of the four groups (31%), these challenged individuals are the least prepared for retirement, are the most unhappy and overall feel the least positive about life. 43% say they are financially worse off in retirement than during their working years. The majority (59%) say they have many regrets in life, and 42% feel that life has dealt them a bad hand.
“We are witnessing the birth of a new retirement with unique stages and journey paths for everyone,” said Ken Dychtwald, Ph.D., psychologist/gerontologist and founder and CEO of Age Wave. “Successful retirees have enjoyed a mostly positive, satisfying life and are looking forward to the years ahead.”
Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.