With much of the Baby Boomer generation reaching or approaching retirement age, traditional thinking about retirement has changed. What was once seen as a lifelong journey to a rest home, filled with various hazards and delays, is now being redefined by the next generation to retire.
For one thing, Baby Boomers are still optimistic about retiring at a reasonable age. In 2010, a survey by Del Webb found that Baby Boomers expected to retire at an average age of 67. In 2013, a new survey showed that the average expected age of retirement has now dropped to 65*. This comes just after the housing market crisis and the worst economic downturn since the Great Depression, proving Baby Boomers are resilient and optimistic as ever.
The way Baby Boomers envision their retirement is also vastly different from the vision of previous generations. In the past, retirement was seen as a time to nap, play Bingo, and generally live a very low-key existence. Today’s soon-to-be retirees see retirement as a time for travel, excitement, and possibly even more work. In fact, 72 percent plan to work part-time during retirement. More than one-third of today’s retirees pursue educational opportunities, and more than half exercise regularly.
This new vision of retirement is probably due to Baby Boomers’ idea of “old age”, which according to Del Webb’s survey, now begins at age 80. That leaves more than a decade of relative youthfulness and plenty of free time to fill! In fact, Baby Boomers report feeling an average of 15 years younger than their actual ages, and most consider themselves to be “in better shape” as they get older.
With the general perception of the retirement years changing rapidly, it’s important to remember that finances must keep pace with the vision. Those who hope for a life of recreational and travel opportunities need to factor those activities into their retirement planning. Consulting with a financial advisor, sharing your dream for the future, and formulating a plan to make it happen remains a smart course of action even as public perception of retirement shifts.
*http://www.marketwatch.com/story/del-webb-survey-shows-boomers-looking-to-retire-sooner-2013-06-11
