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Many Americans Are Rethinking Retirement
By
Stephen Baetge
Staff Writer
Many
working Americans — not just seniors or prospective retirees — are
rethinking the economics of retirement as a result of the widespread
financial turmoil, according to a year-long survey released by mature
market think-tank, Age Wave.
The poll, conducted by Harris Interactive, revealed that the vast financial losses
and uncertainty created during the last year have caused all generations to reassess
the funding, timing and purpose of retirement.
Entitled “Retirement at the Tipping Point: The Year That Changed Everything,” the
poll results uncovered mounting fears and shifting plans along with a renewed
focus on what’s important and an optimistic outlook about the possibilities
for retirees’ new role in American life.
“A new era of cautious self-reliance is emerging from a truly unnerving
fiscal dilemma. For many people, their retirement dreams have vaporized,” analyzed
Dr. Ken Dychtwald, Age Wave’s founder and CEO. “Each of the four
generations polled is trying to alter its game plan in fascinating ways to seek
peace of mind and to make the best of the years ahead.”
Because the study commenced just prior to the economic downturn, it provided
a unique opportunity to mark the changes in retirement attitudes which occurred
as a result of the recession.
“By re-asking over 2,000 people across the generations some of the same
questions we asked before the market crashed, we have a striking, in-depth view
and measurement of the impact this disaster has on people’s economic well-being
and retirement plans,” explained Humphrey Taylor, chairman of the Harris
Poll.
Researchers found several of the study’s revelations particularly provocative.
Many of those interviewed stated that they have “reset the retirement clock” because
of money setbacks and concerns about uncovered medical costs in retirement.
Nearly 60 percent of Americans have lost money in mutual funds, 401(k) plans
or the stock market, and most think it will take an average of seven years for
their investments to recover.
The single biggest worry among those 55 and over is that they will be unable
to afford uncovered medical expenses (46 percent). This is now a greater concern
than either a lack of personal savings (18 percent) or uncertain entitlements
(11 percent).
Less than 4 percent of those polled strongly agree that Americans behave in a
fiscally responsible fashion and stated that to “live within your means” was
the most important financial advice parents could pass on to their children — jumping
up from 69 percent a year ago.
Over 60 percent of those polled believe that financial management should be mandatory
curriculum in high school. Currently, only three states — Utah, Tennessee
and Missouri — have made personal finance courses a requirement.
Fifty-six percent of those surveyed believe that the benefit of having money
is “feeling secure.”
Researchers noted that Americans have increased their savings rate to double
that over the past decade and that household credit card debt has dropped almost
10 percent from last year.
Most Americans polled stated that they value family relationships above all else,
including wealth and power. In many cases, uncertainty about government benefits
and work security has resulted in both men and women turning back to their families
for financial assistance.
Surprisingly, the poll found that the majority of Americans have a more optimistic
view of retirement than they did last year. Nearly 70 percent want to continue
working in retirement as a way to contribute, remain stimulated and pay the bills.
Americans also believe that our society needs more “sage elders,” according
to those surveyed. Nearly three-quarters think the country would benefit in critical
ways if retirees were more involved in contributing their valuable skills and
experience to our communities, with the most enthusiastic response coming from
retirees themselves.
The growing interest in civic engagement is reflected in a stated willingness
on the part of most respondents to volunteer in activities which make use of
their full range of work, life skills and experience rather than basic service
and support tasks.
Researchers are encouraged by the findings, particularly the significant changes
in attitudes by up-and-coming generations.
“While we discovered both disturbing and encouraging signs about retirement
from each generation, there are indications that of all cohorts, it’s the
Millennials that are coming out of this financial storm a wiser, more cautious,
and more responsible generation,” stated Age Wave’s Senior Vice President
of Research David Baxter.
“They were the most likely to have learned valuable lessons about financial
responsibility and had the biggest jump over the past year in their concern about
living within their means,” Baxter concluded.
There’s no question that this past year has been a time of struggle and
worry. At this point, most of us are taking a deep breath, assessing the damage
and trying to figure out how to move forward,” Dychtwald added. “As
we reviewed the survey results, we couldn’t help reflecting that “Retirement
at the Tipping Point” demonstrates the fortitude and resilience of our
country as we re-think the funding, timing and purpose of retirement.
This page and its contents ©2009
Metropolitan News Company, Inc.
