Pondering The Next Stage in Retirement’s Evolution

A recent survey confirms retirement now looks different for everyone, and there is no “right” path to retirement. Views on retirement differ by generation, with a majority of those surveyed envisioning their financial future will be different from their grandparents, parents and children.

What does retirement mean to you? Travelling to exotic locations every year? Golf all day, every day? Learning a new language on an app you just downloaded, while relaxing on the beach? Volunteering at your favorite non-profit or starting a new hobby business? Oh, that’s so yesterday. Franklin Templeton’s June 2021 “Voice of the American Worker” survey confirms retirement today feels “less cookie cutter than it used to be,” according to 82% of those polled. 

The survey found individuals can benefit from personalized guidance to achieve their financial goals – an area where a financial advisor can help. The results also show many participants are also looking to their employers for more tools and resources. And most of all, the results prove participants are changing the way they think about retirement.  

A More Holistic View of Financial Well-being

The vast majority of survey respondents associate their current physical (74%), mental (70%), and financial (66%) health with well-being. More than half say their financial well-being isn't primarily about money—rather, well-being also includes their health and lifestyle (57%). Interestingly, while workers today place nearly equal importance on mental (81%), physical (80%) and financial (76%) health, they feel least in control of their financial (55%) health as compared to physical (62%) and mental (58%) health.

Many respondents struggle to find a holistic view, with 61% indicating they need to consult many sources to get an overall picture of their finances and 51% stating it is too complicated to integrate all their financial info and goals into a single picture.

The Future of Workplace Benefits

According to this survey, three out of four workers want their workplace to provide more resources to help them with their overall financial wellbeing (75%), believing their employer should provide incentives for good financial habits (79%) – as well as good health habits (78%). In fact, workers are more interested in long-term support, over today’s monetary gains, with most preferring a boosted retirement plan match over a raise.

Nine in 10 respondents are also looking for tools to visualize their future and optimize well-being, with top choices being planning tools and resources (89%). Tools designed to help achieve financial independence (35%) and visualize long- and short-term financial goals side-by-side (35%) top their wish lists. In addition, 62% of respondents say, “Unless I am getting personalized recommendations, I feel like financial education isn't very helpful,” (68% men vs. 54% women).

The Changing Retirement Landscape

The results of this study show eighty percent of respondents agree the traditional idea of retirement is no longer accurate for most people’s expectations or experiences; while at the same time, three quarters (75%) say their future financial goals and plans look different today than they did five years ago.

Respondents also feel it is more important to achieve financial freedom than to retire; however, financial freedom is not always as attainable. More specifically, 76% of respondents say there is appeal in achieving financial freedom, while only 56% think it is likely achievable. At the same time, 69% say there is appeal in retirement, while 61% say it is likely achievable – a notably smaller gap.

Workers identified their most important financial milestones today as financial freedom (76%) and financial independence (74%), also indicating financial independence feels more empowering than retirement (81%). Women find financial independence particularly appealing (81% vs. 68% men).

Determine the Right Path for You

With shifting opinions on what realistic financial wellbeing looks like, discovering what means the most to you on your retirement journey will help you achieve your future goals. While there is no single path to retirement, there are some paths which may work better for your financial situation than others; however, finding the right path to follow can be tricky if you do not have the appropriate guidance.

KerberRose Wealth Managment has a team of knowledgeable advisors who can expertly provide recommendations to best fit your unique goals, and will even do the work for you! If you have questions or would like to schedule a free consultation, contact a KerberRose Trusted Advisor.