Do you think that retirement for you and future generations will be significantly different than it is for current retirees? If you say, “yes”, you’re not alone. Most consumers anticipate meaningful differences. Thoughts, expectations, confidence and planning do differ when considering age and gender. Here are some recent findings shared with permission from the LIMRA Secure Retirement Institute. If the Shoe Fits: Generational Names and Retirement Attitudes, 2017.
| 83% |
of retirees believe the retirement experience of their generation will look significantly different from |
| 70% | of non-retirees agree.1 |
Most believe these changes will be negative.
Generation X women, those ages 36-51, are especially pessimistic about their retirement expectations. |
Generation X Retirement Expectation Levels1
|
39% |
of this cohort have high expectations of retirement |
|
8% |
of women have high retirement lifestyle expectations |
|
6% |
of women are strongly confident in achieving their retirement lifestyle |
With such a large percentage of these women having low confidence levels about achieving their retirement lifestyle, surely there must be an opportunity to improve their attitudes, behaviours and prospects. What is one take away? Generation X women in particular could benefit from retirement planning activities that:
The generation known as the Baby Boomers or simply referred to as Boomers, covers a broad period in time - almost 20 years. It’s a small wonder that all Boomers are not alike. Some of the oldest boomers have boomer children. How can parents and children share all the same traits and values? Well, they don’t when it comes to their confidence levels in being able to live their desired retirement lifestyle.
Boomer Confidence about Retirement Prospects1
|
Boomer Segment |
Confidence Level |
|
Ages 52 - 60 |
45% |
|
Ages 61 - 71 |
61% |
What could be weighing down confidence levels? Certainly there is the anticipation of less generous employer benefits as well as potential cuts and eligibility to government retirement benefits. Add to that the expectation that working age consumers will work longer, have reduced access to company sponsored pension plans and will need to become more self-sufficient when it comes to saving money for retirement. The common worry is whether they can save enough to support the lifestyle they want. Saving for retirement is a top financial priority for 6 in 10 consumers.1 There are gender differences.
Saving for Retirement is a Priority1 |
Over half (55%) say family and financial security are two things they value most.2 |
Working consumers do have dreams and expectations about retirement. They also want to protect their values. What do Canadians value most in life? Over half (55%) say family and financial security are two things they value most. (Reproduced with permission from The Future of Retirement Generations and journeys, published in 2016 by HSBC Holdings plc).
Surveyed consumers do say expectational differences relating to retirement are not all bad. In fact, younger generations have the potential to improve their future retirement experiences. There is a greater awareness of the importance of planning and starting earlier in life. Younger generations have more time to plan. They have access to a growing arsenal of improved planning tools, bolstered by quickly evolving technology. That technology may also serve to improve their quality of life in retirement or whatever they choose to call the next phase in their lives.
The best results generally come from working with accredited professionals, particularly those that must follow an enforced code of ethics and increased compliance with evolving rules of conduct. These table stakes have been around for years, despite what you may hear or read about in the news. Engage with one who can provide you with holistic planning aimed at meeting your needs, today, tomorrow and throughout the years to come.
1 LIMRA Secure Retirement Institute. If the Shoe Fits: Generational Names and Retirement Attitudes, 2017.
2 Reproduced with permission from The Future of Retirement Generations and journeys, published in 2016 by HSBC Holdings plc
This blog reflects the views of the author as of the date stated. This information should not be considered a recommendation to buy or sell nor should it be relied upon as investment, tax or legal advice. Empire Life and its affiliates does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise, and does not accept any responsibility for any loss or damage that results from its use.
March 2019