The 4 Pillars of the “New” Definition of Retirement, Ep #174

Edward Jones recently completed a large study on the 4 pillars of the “new” retirement. So in this episode of Best in Wealth, I’m going to talk about some of the topics covered in this study: changing times, the definition of the new retirement, the definition of success, and the 4 pillars. Don’t miss it!Outline of This Episode[1:37] How do you feel about change?[4:08] The speed of change is accelerating[8:13] The definition of the new retirement[14:00] The definition of success[18:56] The 4 Pillars of the New RetirementThe speed of change is acceleratingRetirement has completely changed over the last 10–50 years. People used to work until 65, retired, and didn’t live much longer. People lived on pensions and social security. 401ks weren’t in existence. Now, people are living longer than ever (the average life expectancy is projected to skyrocket from 47 at the start of the 20th century to 85 by 2020).The aging of the massive Boomer generation is unprecedented. 86 million people will be over the age of 65 in 2050. People are also less prepared for retirement than ever before. Of people ages 45–54%, 42% do not have any retirement savings. The median retirement balance is only $100,000. Retirement was already transforming before COVID-19, the pandemic disrupted retirement as we know it.The definition of the new retirement56% percent of people think that the definition of “New Retirement” is a new chapter in life. I’m a positive guy and I think this is a great way to think about retirement years. 28% think it’s a time for rest and relaxation. But I think this is missing the mark. You can’t just wake up and watch Netflix all-day-every-day. It won't create meaning in your life. You want to build a routine with purpose.9% believe retirement will be a continuation of what life was. Some people don’t want to leave their job or career because it brings fulfillment to their life. Others believe retirement is a continuation because they can’t afford to retire. 7% of people called new retirement the beginning of the end. I hope anyone listening to this podcast doesn’t feel this way.That’s why you need to start planning your new chapter right now.The definition of a successful retirementThis study also covered what people thought the definition of success was, defined per age group. So they asked Millennials, Gen Z, Gen X, Baby Boomers, and The Silent Generation the same questions about their definition of success: Is it achieving wealth? A career that you’re proud of? A positive impact on family and others? Or being happy with who you are and what you do?A lot of people define success early in life but it evolves and changes as they get older. 26% of Gen Z, 13% of Millennials, 6% of Gen X, 4% of Boomers, and 3% of The Silent Generation believe that success is achieving wealth.What about having a career that you’re proud of? 18% of Gen Z, 19% of Millennials, 9% of Gen X, 7% of Boomers, and 11% of The Silent Generation believe that success is having a career that you’re proud of. The older people get, the less important it becomes.What about having a positive impact on family and others? What about being happy? Listen to hear where these landed on the spectrum!The 4 Pillars of the New RetirementI talk often about building abundance in the four cornerstones. Money is only one facet that fuels the other things. According to the Edward Jones study, their four pillars are:Health: A longer lifespan and more years in retirement is the future. The most feared condition in America is Alzheimer’s and other forms of dementia. 90% of Americans older than 50 believe that the definition of “health” is being able to do the things that you want to.Family: According to this study,...