Retirement used to be pretty simple. When you hit a certain age, usually 65, you’d just stop working. Then you’d spend the rest of your days relaxing — maybe playing golf, or just taking it easy. That was the traditional idea of retirement, and it didn’t change much for a long time.
But a recent survey conducted by Edelman Financial Engines has revealed some interesting results on how Americans’ attitudes toward retirement are changing. Each generation is redefining what retirement looks like to them. But they also are facing challenges when they try to reach that goal.
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So what does retirement look like now? When do Americans today expect to finally start this new phase of their lives? Here’s a look at the survey results.
Americans’ Idea of Retirement Is Shifting
Americans today see retirement as more than just a time to relax. Of those surveyed, 37% want their retirement to be totally different from what their parents did.
Most of them want to have a more active and adventurous retirement. Others are envisioning a more minimalist lifestyle or even being more nomadic.
“Whether it’s two or 20 years away, it is never too early to start preparing for retirement,” said Andy Smith, executive director of financial planning at Edelman Financial Engines. “Our research revealed that 4 in 10 Americans want a retirement that looks different than their parents or grandparents.
“It’s exciting to think about what your retirement might be, so go for it and dream big… but be realistic and remember to consider some key retirement realities.”
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The Age when Americans Expect To Retire
People’s visions for what their retirement will be are shifting. But they all have similar expectations about when they’ll retire. That hasn’t really changed.
This is pretty consistent across generations. The survey revealed that millennials, Gen X, and Gen Z all believe the “normal” retirement age is 67 to 68.
Whether they’ll actually be able to retire at that age may be a different story, however.
Many Americans don’t expect to get the retirement they want. According to the survey, about a third (32%) think they’ll never get to fully retire. And 6% don’t think they’ll be able to retire at all.
They think they just won’t have enough money to ever stop working.
Your Savings Need To Last
No matter when you retire, you should plan for your savings to last through the rest of your life.
A traditional approach to retirement is going to focus on just your daily living expenses. But if you’re planning your retirement to be filled with adventure and activity, that means you need a different savings plan.
“Your expenses may change in retirement, so you’ll want to factor in the costs of your adventures and passion projects… and, maybe later, your longer-term health care… into your retirement spending plan,” Smith said. “A financial planner can help take a holistic view of your financial situation and create a plan for you that addresses your most important long-term goals.”
Remember: Everything is going to cost more in the future than it does now. If you live 20 or 30 years after retiring, you need your money to last that whole time.
“Your savings need to last,” said Smith. “As of 2022, the average life expectancy in the U.S. is 77.5 years; you want to try to ensure that you don’t outlive your money.”
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This article originally appeared on GOBankingRates.com: Here’s the Age at Which Gen X, Millennials and Gen Z Expects To Retire
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