-- New Research Documents the Evolving Nature of the "Next Chapter" --
ROCKFORD, Ill., Sept. 14, 2021 /PRNewswire/ -- Savant Wealth Management, a nationally recognized, fee-only wealth management firm, and Absolute Engagement, a research and consulting firm focused on the drivers and evolution of client experience and engagement, announced a joint research report on the evolution of retirement in the United States. The report, entitled The Death of Retirement: New Thinking on the Next Chapter, highlights perceptions of retirement among 750 high-net-worth investors.
"We learned that a significant difference exists between the path that many people are on and the one they would take if they believed they had another option," said Rob Morrison, CFP®, chief strategy and innovation officer at Savant. "Although the pandemic led many people to change their plans for retirement, their vision for the future had already begun to evolve. The results not only impact the way advisors work with clients, but also have implications for everything from retirement product design to staffing and human resources," he added.
"Even the word 'retirement' appears to be losing relevance, particularly among younger people," said Julie Littlechild, founder and CEO of Absolute Engagement. "They preferred terms like 'next chapter' or 'second act' to describe the end of full-time work, and a fair number have no plans to stop working completely even if they are financially able to do so."
The research included questions on retirement timing, the effect of COVID-19 on retirement plans, and how the respondents wished to structure their retirement. The report offers six key insights:
Our vision of retirement is changing. Only half of respondents said they plan to work full time and then stop working completely. Nearly 70 percent say they would transition to a different kind of work or work on their own terms if they thought it was an option.
The pandemic contributed to shifting plans and ideas for retirement. Roughly a third of respondents (32 percent) said the COVID-19 pandemic changed their plans for retirement, with a much higher proportion of people under age 45 saying their plans were impacted.
Planning for a transition that provides meaning and purpose is critical. Nineteen percent of working respondents said they had retired, only to start working again. They pointed to personal, rather than financial, reasons for rejoining the workforce.
Many do not think of the end of full-time work as retirement. Just 60 percent of respondents defined the time when they planned to stop working full time as "retirement." Fewer than half (48 percent) of respondents under the age of 45 use the word "retirement" to describe this phase of life.
We are planning to retire earlier. Nearly two thirds (59 percent) of respondents said they want to retire before the age of 65, and a third want to retire before the age of 60.
Even if we aren't planning on retiring early, we would like to do just that. Approximately two-thirds (62 percent) of respondents who planned on working past the age of 60 said they would retire earlier if they were financially able to do so. The largest proportion (55 percent) of respondents who said they would choose to retire earlier said they would need a clear vision for life in retirement before deciding to retire.
Savant is conducting follow-up research with its clients using this study as a benchmark. The full research report is available at https://savantwealth.com/retirement-study/.
About Savant Wealth Management
Savant Wealth Management, formerly known as Savant Capital Management, is a leading independent, fee-only firm serving clients for 30 years with more than $11 billion in assets under management and assets under advisement. Savant is headquartered in Rockford, IL, with locations in Bloomington, Chicago, Downers Grove, Freeport, Hoffman Estates, Lincolnshire, Naperville, Peoria, St. Charles, Sterling, and Wilmette, IL; Phoenix, AZ; Indianapolis, IN; Plymouth, MI; Santa Fe, NM; Madison and Park Falls, WI; and McLean, VA.
Savant Wealth Management ("Savant") is an SEC registered investment adviser headquartered in Rockford, Illinois. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Please see Important Disclosures at savantwealth.com.
About Absolute Engagement
Founded by speaker, author and researcher Julie Littlechild, Absolute Engagement helps financial advisors use on-going input from clients to evolve the experience and drive deeper engagement.
Julie has worked with and studied successful financial advisors and their clients for more than twenty years. Prior to founding Absolute Engagement, she launched and ran one of the industry's leading research firms, focused on client engagement. Julie is the author of a popular blog, the co-host of the Becoming Referable podcast and the author of The Pursuit of Absolute Engagement.
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SOURCE Savant Wealth Management