Reality sets in: Today’s new face of retirement

It’s the question everyone will ask themselves at some point during their life: “When will I be able to retire?” But some Americans are taking a different approach, and a retirement where people completely stop working, may be a thing of the past.

According to new research from Empower, over half (58%) of Americans (64% of Baby Boomers and Gen Xers) may be in the job market post-retirement and are open to working indefinitely – but the reasons aren’t purely financial. Would-be working retirees are motivated by values like personal fulfillment (41%) and having a sense of purpose (37%), just as much as potential financial needs (40%).

To explore what defines the ideal retirement in America, we surveyed over 1,000 adults about their views on living locations, activities, and concerns. Let’s dive into their plans and goals below.

Top retirement concerns

Americans’ biggest worries about retirement include:

• Inflation (52%)
• Insufficient savings or running out of money (51%)
• Unexpected expenses (49%)
• Healthcare costs (44%)
• Affordability of housing (37%)

To financially prepare for retirement, most respondents (56%) pointed to having a 401(k) as the top way to save. Setting up a solid financial and retirement plan can help people anticipate these forces and set Americans on the path to a secure future.

Selecting the perfect place to retire

Nearly one in four Americans (22%) said they want to relocate to another state in retirement, and 10% would like to move abroad (Gen Z had the most wanderlust, at 13%). Not so fast, according to nearly one-third (32%) who plan to stay put post-retirement, including 50% of boomers.

Florida was voted the most popular state for future retirees. Meanwhile, Italy was the No. 1 destination for Americans planning on an international retirement. With its beautiful scenery, affordable real estate, and high-quality healthcare, it’s easy to see why retiring in Italy is so attractive.

As for the top deciding factor when choosing a new locale, it’s not surprising that cost of living (55%) was highest on the list. Right on its heels, respondents also factored in climate (50%) and proximity to loved ones (41%) to round out the top three factors when choosing where to live.

Among those looking to retire abroad, respondents weighted the importance of these factors a bit differently:

• Lower cost of living (70%)
• Climate (68%)
• A slower pace of life (55%)
• Cultural activities (45%)
• Healthcare access (45%)

After deciding where to live, what do Americans hope to do during retirement?

Move over fishing, there’s a new retirement hobby in town. According to survey results, most Americans would prefer to travel, garden, and hike in retirement. Americans were also interested in spending time in retirement to learn new skills, tinker with hobbies, and volunteer for worthy causes. Others wanted to socialize more, and some even desired to work a side hustle or start their own business.

Even so, among all respondents, the desire for a more relaxed life took center stage, with more than half (54%) looking forward to a slower pace.

Post-retirement employment: Options and benefits

With 58% of respondents open to post-retirement employment, working as a retiree was popular among Americans. However, don’t ask them to come into the office. When asked how they wanted to work, 49% said remotely, 34% were OK with a hybrid situation, and only 17% were willing to go into an office regularly. Americans’ top reasons for working after retirement were the personal fulfillment (41%) and financial need (40%).

Over three in four Americans also said working after retirement would help them to maintain a daily routine, give them a sense of purpose, and keep their minds and bodies active.

A future to look forward to

Defining the ideal retirement is individual and comes down to priorities, values, and goals — both financial and personal. Getting advice from a financial professional can help people create a roadmap so that when working life ends, a bold new chapter begins.

About Empower

Empower is a financial services company on a mission to empower financial freedom for all. We offer investment, wealth management, and retirement solutions for individuals and all sizes of organizations. Connect with us on empower.com.

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