Four pillars of the new retirement

Our research in partnership with Age Wave reveals four key pillars to consider for living well in today’s new retirement.

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How to live well in retirement

Wealth and leisure used to define success in retirement, but not anymore. Today it centers around four pillars — health, family, purpose and finances. Thought and action about each of these pillars can help in achieving your ideal retirement.

Scott Thoma

Today, people are reaching their 60th or 65th birthdays 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 by Edward Jones and Age Wave 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. They are:

Health
Family
Purpose
and Finance

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 they did 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%¹ of retirees say being a burden to their family is one of their top fears, but 45%² 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. OK, now you're in retirement. Are you prepared to manage your life, manage your finances, make tradeoffs? 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 tradeoffs is also key to a higher well-being 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 four 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.

^{1 – 2 The Edward Jones and Age Wave Thought Leadership Study, "The Four Pillars of the New Retirement," 2020.}

Pillar 1: Health

Health is the new wealth

Key takeaways

Being healthy is about being able to do the things you want
Cognitive ability and brain health are also important
It’s never too late to improve your health

As important as sound finances are, today’s retirees overwhelmingly say health is more important than wealth to live well in retirement.¹ Good health not only offers choices. It can also help protect retirement savings. But while good health is the ideal, most adults spend 10 years in poor health.²

Key takeaways

Being healthy is about being able to do the things you want
Cognitive ability and brain health are also important
It’s never too late to improve your health

Pillar 2: Family

The expanding family circle

Key takeaways

“Family” is evolving to mean anyone you love and care for
Families are becoming more connected and interdependent
Memories, values and life lessons are most important to pass along

Family is the greatest source of satisfaction, support and purpose.³ But retirees worry about becoming a burden on their families, often as a result of health-related issues. On the flip side, they’re willing to offer financial support to family even if it jeopardizes their own financial future. ⁴

Key takeaways

“Family” is evolving to mean anyone you love and care for
Families are becoming more connected and interdependent
Memories, values and life lessons are most important to pass along

“All working people need to understand the quality of their lives in retirement is rooted in what they do to improve their health, their relationships with family and friends, their sense of purpose, and their finances long before they retire.” ⁵

Pillar 3: Purpose

The key to happiness: finding your purpose

Key takeaways

Having purpose is key to success in retirement
Finding purpose is especially challenging for newly retired people
Feeling useful helps you feel youthful

Retirees with a strong sense of purpose are happier, healthier and live longer.⁶ Their greatest source of purpose: spending time with loved ones, but also on their list is learning and growing. Yet now, with more than seven hours a day of free time, one in three retirees struggles to find purpose in retirement. ⁷

Key takeaways

Having purpose is key to success in retirement
Finding purpose is especially challenging for newly retired people
Feeling useful helps you feel youthful

Pillar 4: Finances

Financial security and the freedom it brings

Key takeaways

Plan for how you want to live, not just want you’ll need
Managing money in retirement can be more difficult than saving for it
Health care costs can be more worrisome than a recession

For most retirees, it isn’t about accumulating wealth for wealth’s sake. Instead, it’s about having enough resources to provide security and allowing them the freedom to live the lives they want. Over half of retirees wish they’d budgeted more for unexpected expenses.⁸

Key takeaways

Plan for how you want to live, not just want you’ll need
Managing money in retirement can be more difficult than saving for it
Health care costs can be more worrisome than a recession

The COVID effect

While retirement was changing before COVID-19, the pandemic accelerated this transformation. We tracked these changes via two studies; one study focused on COVID-19’s impact across the pillars. The other study looked at the growing importance of family in retirement with the pandemic as a backdrop. Some insights from these studies include:

Retirement timing for many Americans has shifted; most plan to retire later for financial reasons, but some intend to retire earlier to follow new personal priorities.
The pandemic was a financial wake-up call for most Americans, causing them to pay more attention to their long-term finances.
COVID-19’s economic impact deeply affected working women, widening the economic gender gap.⁹
There were some silver linings: families became closer, people refocused on what really matters, and empathy and compassion increased.

Are you prepared for this new chapter?

Retiring well today is about more than money — it includes health, family and purpose. Does your plan take them into account? At Edward Jones we’ve been helping people plan their futures for over 100 years. And we’ve always believed you’re more than just your portfolio. Let’s talk. The first meeting is on us.

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More New Retirement studies

These ground-breaking studies reflect our efforts in partnership with Age Wave to explore people’s hopes, dreams and concerns in retirement.

Resilient Choices: Trade-offs, Adjustments and Course Corrections to Thrive in Retirement (2023)
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Executive Summary (PDF)

Longevity and the New Journey of Retirement (2022)
Full Report (PDF)
Executive Summary (PDF)

The Four Pillars of the New Retirement: What a Difference a Year Makes (June 2021)
Full Report (PDF)

Important Information:

^{1 - 8 The Edward Jones and Age Wave Thought Leadership Study, "The Four Pillars of the New Retirement," 2020.}

^{9 The Edward Jones and Age Wave Thought Leadership Study, "The Four Pillars of the New Retirement: What a Difference a Year Makes," 2021.}

Four pillars of the new retirement

How to live well in retirement

Read the transcript for four steps to a smoother retirement video

Pillar 1: Health

Key takeaways

Key takeaways

Pillar 2: Family

Key takeaways

Key takeaways

Pillar 3: Purpose

Key takeaways

Key takeaways

Pillar 4: Finances

Key takeaways

Key takeaways

The COVID effect

Are you prepared for this new chapter?

More New Retirement studies