Think you know why people retire, what they hope to do in retirement, and how current retirees feel about their retirement decision? A new survey calls into question some of that “common wisdom.”
The survey, done by Fidelity Investments, in collaboration with the Stanford Center on Longevity, was based on responses from more than 12,000 retirement savers and recent retirees, age 55 or older, and highlighted five myths about retirement.
1. People won’t retire until they have enough money.
Well, mostly not. The researchers found that nearly half of respondents don’t link their retirement to their level of savings. Asked if time or money was more important in their decision to retire, nearly half (49%) indicated that their retirement date is not tied to money or a specific level of savings, but to a specific date, planning to adapt their lifestyle to whatever they can afford. The remaining 51% of respondents indicated that their finances will determine when they retire, and that they want to have enough savings to enjoy their retirement.
2. Retirement means spending time with your spouse.
It might, but while more than half (60%) of men want to spend time with their wives, their better halves are more focused on spending time with their grandchildren (nearly 70%). Although 43% of women are counting on spending time with their husband.
3. People work in retirement because they have to.
Asked why they are working in retirement, 61% of respondents indicated that “they like what they do,” and nearly half (48%) added that “feeling valued” was an important reason to continue working in retirement.
4. Retirement is all about traveling and pursuing hobbies.
Almost three quarters (72%) said their top reason to retire was to have more leisure time — the freedom and flexibility to do whatever they wanted, even if that was nothing more than relaxing.
5. Many retirees are struggling to get by and living with regret.
Other surveys have found that retirees seem to be feeling better/more confident about retirement than those for whom that remains a future event, and this survey is no exception. The vast majority (82%) of current retirees surveyed felt they retired at the right time, and 85% feel retirement is the most rewarding time of their lives.
Not that they weren’t concerned at some point; 79% said it was easier than they thought to live comfortably in retirement — they were able to manage their savings and adapt their lifestyle based on their finances if necessary.
That said, there is some regret; 36% wished they had saved more, and a third wished they had started saving earlier.
Octogenarians Opine
On the other hand, another recent survey of 500 retired octogenarians offers a somewhat less optimistic view. Nearly three quarters (72%) of respondents agree that the earliest years of their retirement were some of the best years, and nearly half (49%) say that their best and happiest year of retirement was within five years of retiring — including 24% who say that the very first year was their favorite.
Over half (54%) say that when they were planning for retirement, they were not expecting to live as long as they have.
Nearly 9 in 10 (88%) would advise younger generations to recreate pension-like income for their retirement. In fact, a majority (52%) feel that their auto-pilot income sources have given them greater peace of mind than accounts that they would need to actively manage themselves.
The study was conducted by Ipsos Public Affairs and commissioned by New York Life. A national sample (all 50 states) of 514 retired adults ages 80 and older from Ipsos’ U.S. online panel completed the seven-question, online survey in English, with an estimated margin of error of +/- 4.9 percentage points.
