New report from RBC Wealth Management – U.S. outlines the realities of retiring today and shares practical guidance as seniors prepare for the future
MINNEAPOLIS, MN, Feb. 26, 2019 /PRNewswire/ - Americans are living longer, healthier lives, which means that modern retirement offers a number of exciting prospects – but also comes with increased financial demands. A new study commissioned by RBC Wealth Management – U.S identifies a shift away from the long-held stereotype of retirement, with seniors of today exhibiting new perspectives – and new attitudes – around retirement and aging. This split study examines the concerns of those approaching retirement with the reality of those already in it: while pre-retirees fear running out of money, current retirees worry about being able to maintain their quality of life, with a clear focus on health and family.
In conjunction with the study, RBC Wealth Management developed a new report, "Rewriting Retirement," to help investors understand and prepare for the challenges they face as they enter their encore years, highlighting the importance of proactive wealth planning. The report presents additional results of the survey, which captured responses from 1,400 Americans (half pre-retirement and half retired), and explains how people can take a holistic approach to retirement in order to achieve long-term wellbeing.
"Rather than viewing retirement as the final chapter in an active life, today's boomers optimistically perceive retirement as an extended encore – a chance to reinvent themselves, pursue lifelong passions, volunteer, work a part-time gig or even embark on a new business venture," said Ann Senne, Head of Advice & Solutions at RBC Wealth Management-U.S. "This transformational shift in the mindset of today's retirees will require a re-assessment of expectations and concerns; and a redefinition of goals regardless of age. Rewriting Retirement is designed to help advisors take clients through that process."
The new report shows that seniors are generally positive about retirement, with three-quarters of those aged 70+ saying they are confident they will achieve the type of retirement they desire. Importantly, there is a strong correlation between that feeling of assurance and the existence of a comprehensive wealth plan: 84 percent of those who already have a plan in place report feeling confident, compared to just 45 percent of those who don't.
"Baby Boomers, 10,000 of whom are retiring every single day, expect more from retirement than did previous generations," said Tom Sagissor, President of RBC Wealth Management – U.S. "While retirement can be an exciting new chapter in life, it also presents a number of challenges, and thoughtful planning can create stability even in the face of obstacles. People with goals-based and adaptable wealth plans are less likely to be caught off guard by major expenses down the line, like healthcare and housing."
Adaptability is key, as a third of seniors say they are spending their time differently than anticipated. Moreover, 52 percent of pre-retirees cite travel as their top retirement goal, while 53 percent of current retirees say they want to spend more time with family, demonstrating how priorities change as people settle into their new lifestyle.
"As the retirees we surveyed make clear, retirement isn't just about the numbers," said Angie O'Leary, Head of Wealth Planning at RBC Wealth Management-U.S. "Financial stability is the foundation that allows people to fully enjoy retirement, but today's seniors are particularly focused on personal life goals such as maintaining quality of life, physical and mental health, and close relationships."
"Rewriting Retirement" also covers strategies and tactics for growing a nest egg, planning for longevity and long-term care, anticipating healthcare costs and maximizing Social Security benefits. It also contains a detailed checklist of practical steps investors can take at various stages in the transition to retirement and beyond.
Investment and insurance products offered through RBC Wealth Management are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, or guaranteed by, a bank or any bank affiliate, and are subject to investment risks, including possible loss of the principal amount invested.
About RBC Wealth Management – U.S.
In the United States, RBC Wealth Management operates as a division of RBC Capital Markets, LLC. Founded in 1909, RBC Capital Markets, LLC is a member of the New York Stock Exchange, the Financial Industry Regulatory Authority, the Securities Investor Protection Corporation, and other major securities exchanges. RBC Wealth Management has $358 billion in total client assets with approximately 1,800 financial advisors operating in 200 locations in 42 states.
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