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From travel to family time to part-time jobs, Americans are refining what it means to retire. Financial advisors can help retirees make sure their financial resource are sufficient to fund their retirement dreams.
"Today's retirement is as unique as the people entering it," said Erin Culek, head of Financial Protection and Retirement Solutions at Guardian. "No matter their plans for their next chapter, people should feel confident in their retirement savings."
More than half of retirees say they are in good financial health, providing them with the financial freedom to pursue passions, travel to dream destinations or spend quality time with family, Guardian’s new Retirement Redefined report found. To fund a longer retirement, however, 73% of people say they plan to continue working part time.
Many retirees and workers are taking a close look at their planning strategies. One in five retirees has regrets about how they have prepared for retirement. With future lifespans expected to increase, today's workers are even more concerned. Four in 10 say they have regrets about how they've prepared financially for retirement.
More education about retirement income sources is needed, the survey revealed. For example, despite respondents saying their top financial concerns are not having enough money to last through retirement and not having a source of guaranteed income in retirement, just 30% of workers know that annuities can provide guaranteed income for life. Younger workers face similar education gaps. Despite a steep decline in the number of workers with access to a pension, 55% of Gen Z expect to use a pension in retirement.
Whether helping plan for tax liabilities, adjusting investment strategies as retirement nears or assessing various income stream options, the study found that people who report working with a financial consultant are more likely to say they are on track for retirement. Despite the benefits, however, the report found that less than half of retirees (48%) and current workers (40%) have sought guidance from a financial consultant.
Among other highlights of the survey:
- Three-quarters of retirees who report feeling very prepared for retirement also have high emotional health.
- Eighty-six percent of retirees who self-report great emotional health also say they have great physical health.
- Among retirees who did not feel prepared for retirement, more than one-third say their physical health is one of the most stressful aspects of their life.
- Half of retirees with low well-being didn't expect to feel so isolated or thought they would spend more time with family in retirement.
- Although 84% of workers expect to retire at a specific age, only 52% actually retired then.
- Thirty-nine percent of retirees say they moved up their retirement age.
- Two in 10 retirees left the workforce because their health or that of a loved one's began to deteriorate, and 12% left because they lost their job.
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