Changing family structures, longer life expectancies, increasing burdens on Medicare, an aging workforce and an emerging economy to address the growing 50+ population are among the demographic and lifestyle trends that will change the way Americans plan and invest for the future, according to a new white paper from RBC Wealth Management – U.S.
“Twenty years ago, retirement was a fixed point in time — you fully retired and spent your remaining years relaxing. It’s different now,” the paper titled, “Rewriting Retirement,” states. “Today, retirement is a time of life that brings you the freedom to continue working and have time for leisure, family, volunteering, pursuing hobbies and travel.”
As part of the report, RBC polled more than 1,400 Americans (half pre-retirement, half retired) and found that seniors are generally positive about retirement, with three-quarters of those aged 70+ saying they are confident they will achieve the type of retirement they desire. Importantly, there is a strong correlation between that feeling of assurance and the existence of a comprehensive wealth plan: 84 percent of those who already have a plan in place report feeling confident, compared to just 45 percent of those who don’t.
Adaptability is key, as a third of seniors say they are spending their time differently than anticipated. Moreover, 52 percent of pre-retirees cite travel as their top retirement goal, while 53 percent of current retirees say they want to spend more time with family, demonstrating how priorities change as people settle into their new lifestyle.