Americans Reset Retirement Expectations

Baby Boomers contemplating retirement have revised their plans and expectations for retirement, a survey finds. Having weathered the Great Recession, most have defined a new retirement track and are pursing it.

"While the recession clearly had a financial and emotional impact, it was very encouraging to see that three out of five Americans 55 and older have remained hopeful for their future," said SunAmerica Financial Group President Jay S. Wintrob. "Americans are emerging from the experience with new knowledge, new discipline and have re-set their vision of an ideal retirement.”

For example, the survey, conducted by SunAmerica and Age Wave, says 81 percent of Americans say they have learned important lessons regarding retirement preparation in the past several years.

Course corrections

"They are course-correcting: intending to work longer, save more, spend less, be more disciplined and adjust their lifestyle expectations," Wintrob said.

The study found a significant shift in attitudes and actions since 2001, when SunAmerica conducted its initial landmark retirement study with Age Wave. Today, 54 percent view retirement as a new chapter in life, rather than a winding down, a significant increase over the 38 percent that held a similar view a decade ago.

Not surprisingly, more Boomers are postponing retirement. Those in their pre-retirement years say they now intend to delay retirement by five years, from 64 to 69, triggered in part by increasing longevity, as well as the recession and financial need.

Working through retirement

Even in retirement, more Boomers expect to keep on working. Nearly two-thirds say they would ideally like to remain productive and include some work in retirement to stay active and involved.

What's the key financial goal? Previously, it was accumulating wealth. Today, 82 percent are simply looking for financial stability and peace of mind.

What's behind the change? For one thing, disruption to retirement investments has reduced the financial resources that are available. Beyond that, the economic shocks to the economy have required many aging adults to provide financial assistance to children and grandchildren.

Nearly half of Americans 55 and older expect to provide this support and, in a new twist on childcare, 70 percent of those believe their adult children will need additional financial assistance in the future.

"Emerging from the recession, Americans are beginning to define retirement differently than previous generations of retirees," said Dr. Ken Dychtwald, gerontologist, founder and CEO of Age Wave. "Having been jolted by the last several years, Americans have adopted more realistic and pragmatic views of the possibilities before them. They now see retirement as a time for new priorities, new opportunities and new strategies for today's challenges."