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Boomers, Is Your Parents’ Retirement Style ‘Too Boring’?

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A new study by Age Wave, a research, marketing, and consulting firm focused on the aging population, confirms what many of us suspect about retirement: Our perceptions of this phase of life are changing.

Ken Dychtwald, a gerontologist and the founder of Age Wave, says popular perceptions of retirement have undergone two major shifts since the 1930s, when the creation of Social Security helped finance a period of “brief rest after a life of hard work.”

The first shift occurred in the 1970s, amid the rise of a new generation of retirees, who were enriched by defined benefit pension plans and a savings ethic influenced by the Great Depression, Mr. Dychtwald says. “Retirement became promoted as a time of entitlement and leisure,” he says. “It was a time to kick back and to play.”

Now, he says, the retirement culture is undergoing yet another change. “What we see in our study is that the boomers are rejecting their parents’ style of retirement. They may feel that it’s too boring for them,” Mr. Dychtwald says.

Moreover, he adds, “they certainly cannot afford it.” Based on a national survey of Americans 55 and older funded by life insurer SunAmerica Financial Group, the study finds that one-third of respondents say their financial assets “have not recovered” from the recession. In addition, 46% say their home is worth less than it was before the recession.

The change in retirement culture is also being driven by greater longevity, which means that many people face as many as 30 or more years in retirement—a period during which they want to “stay active and involved,” Mr. Dychtwald says. Here are some of the specific findings:

* 54% of retirees (65 and older) and pre-retirees (55 and older) “view retirement as a new chapter in life, rather than a winding down—a significant increase over the 38% that held a similar view a decade ago.”

* Pre-retirees “say they now intend to delay retirement by five years—from 64 to 69—triggered in part by the recession and financial need.”

* Almost two-thirds say “they would ideally like to remain productive and include some work in retirement.”

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    • One point not mentioned is that many baby boomers are choosing to stay near their children. Boomers do not have the money to move to Florida or some other retirement location, in addition their children are suffering. So many of these boomers are choosing to stay near their children in retirement so they can help the kids by helping with the grandchildren. Also, many of us had children when we were older and still have kids at home. These kids have to be educated and retiring completely isn’t a wise option when you have kids that are going to need your help.

    • The best line in the article:

      Moreover, he adds, “they certainly cannot afford it.”

About Encore

  • Encore examines the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities and priorities of today’s retirees. The blog also explores news that affects retirement, from the Wall Street Journal Digital Network and around the web. Lead bloggers are reporter Catey Hill and senior editor Jeremy Olshan. Other contributors include The Wall Street Journal’s retirement columnists Glenn Ruffenach and Anne Tergesen; the Director for the Center for Retirement Research at Boston College, Alicia Munnell; and the Director of Research for Pinnacle Advisory Group, Michael Kitces, CFP.

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