Retirement today means a new life chapter that you get to write – so say the majority of today’s retirees in recent studies from Edward Jones and Age Wave called The Four Pillars of the New Retirement, The Four Pillars of the New Retirement: What a Difference a Year Makes, and Longevity and the New Journey of Retirement.
Our ongoing collaboration with Age Wave now includes this comprehensive new study, Longevity and the New Journey of Retirement, to explore how the journey of retirement unfolds, the patterns of people’s experience in retirement, and the keys to thriving along the way. With the Four Pillars – Family, Health, Purpose, and Finances – all essential to well-being in retirement, early – and holistic – planning can have big payoffs.
"Today’s retirees appreciate their longevity and they now count the ideal length of retirement at an average of 29 years."
Our latest report continues to track the pulse of American sentiments during the pandemic and provides an update on how they are faring across all four pillars that impact the quality of life in retirement: health, family, purpose and finances.
Two-thirds of Americans (66%) say the pandemic has made them think more about the kind of legacy they want to leave behind.
This study builds on the landmark study from 2020 which explored the four pillars of living well in retirement – health, family, purpose and finances. This new study reveals how the timing and funding of retirement are being adjusted, shining a spotlight on the importance of purpose and contribution post-work, and describes what Americans now say are the most critical aspects of both the financial and non-financial elements of comprehensive retirement planning.
76% of Americans credit the pandemic with helping them "refocus on what's more important in life."
Our study surveyed 9,000 North Americans across five generations and identified four areas (dubbed the Four Pillars) that impact the quality of life in retirement: health, family, purpose and finances. Achieving your ideal retirement requires thought and action about each of these pillars.
Most retirees wish they had done a better job planning for the financial (61%) and non-financial (54%) aspects of retirement.2
Scott Thoma
Today, people are reaching their 60th or 65th birthday and they're beginning to think, "Wait a minute…I might have 20, 25, 30 years of life in front of me. It's a whole new chapter in life!"
Today, people are retiring from work but they're not retiring from a connected and purpose-filled life.
A study conducted in partnership by Edward Jones and Age Wave, we've identified four key pillars that are redefining what it takes to live well in this new retirement.
Josh Colwell
We've found that focusing on all 4 pillars are key…which are:
These four pillars are intertwined…which really illustrates the need to think more holistically about planning for – and living well – in retirement.
Julie Kelly
People are living longer than decades ago…and as a result, they have more years in the retirement stage of life.
Retirees today find that health is often more important than wealth to live in retirement…so it's really important to take those steps to improve both your physical and mental health where you can.
Scott Thoma
72% of retirees say being a burden to their family is one of their top fears, but 45% of American adults have not discussed their long-term care preferences with anyone at all.
So think about starting those conversations now with your loved ones to help prepare and have a plan in place for the long term.
Josh Colwell
You can be 65 or 72 and decide you want to go back to school, or maybe you're living in retirement and you're a little bored and want to work in retirement but do something completely different by choice.
Julie Kelly
Retirees want to spend their time in useful, rewarding ways. And they're very capable of doing so, given their decades of life experiences. Having a strong sense of purpose can lead to a happier, healthier life.
Nela Richardson
As we all know, people focus on saving for retirement. Okay, now you're in retirement. Are you prepared to manage your life, manage your finances, make trade offs? Should you go on that vacation you've always dreamed of, or should you help a family member buy a new house?
What about legacy? What about charitable giving? Understanding how to manage these trade offs is also key to a higher wellbeing in retirement.
Julie Kelly
The new retirement holds exciting possibilities and today's retirees have more choices and opportunities and freedoms than ever before.
The reality is living well in retirement isn't guaranteed….it requires a strategy to help you get there, which is centered around all 4 of these interrelated pillars.
Scott Thoma
If you're getting close to retirement, you can use these four pillars to support a fulfilling and meaningful way of life.
By addressing these and other issues, possibly with the help of a financial professional, you can set yourself on the path toward the type of retirement that's really not a retirement at all --- but rather a new chapter.
While yesterday’s retirement often focused on the end of work and winding down, today’s retirees see themselves as having more freedom – freedom from many work and family responsibilities, and freedom to explore new options and pursue new interests. Are you confident that your retirement plan is ready for your idea of retirement?
Part of what’s new about retirement is a longer lifespan and more years in this life stage. Good health offers choices. Unfortunately, most adults spend 10 years in poor health. The most feared condition in America is Alzheimer’s and other forms of dementia.
90% of Americans older than 50 say that being healthy is about being able to do the things you want.1
Family is the greatest source of satisfaction, support and purpose. On the one hand, adults 50+ worry about becoming a burden on their families. On the other hand, they are willing to offer financial support to family regardless of how it affects their future.
72% of retirees say being a burden to their family is one of their top fears, but one in four Americans older than 65 have not discussed their end-of-life care preferences with anyone at all.1
Retirees say their greatest source of purpose is from spending time with loved ones. They also value learning and growing. Yet now, with more than seven hours a day of free time, one in three new retirees struggles to find purpose in retirement.
89% of Americans feel there should be more ways for retirees to use their talents and knowledge for the benefit of others.1
The role of money in retirement is to provide security and freedom. Over half of retirees wish they had budgeted more for unexpected expenses. When it comes to the unexpected, the cost of health care is more worrisome than a recession.
Two-thirds of Americans who plan to retire in the next 10 years say they have no idea what their health and long-term care costs will be in retirement.1
Learn how proper estate planning can protect you and your family.
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We understand planning for the future is about more than saving and your financial health.
Learn More1 The Edward Jones and Age Wave Thought Leadership Study, "The Four Pillars of the New Retirement," 2020.