The conventional idea of retirement is being challenged in the 21st century. A new analysis reveals that many commonly held beliefs about work in retirement are obsolete as life expectancy and aspirations improve.
Retirement is no longer being defined as a period of inactivity. According to Merrill Lynch and Age Wave, retirement now has four distinct phases: pre-retirement, career intermission, reengagement, and leisure. The reengagement phrase is the biggest surprise in the study, as three out of four pre-retirees older than 50 say their ideal retirement will include working in some capacity. Furthermore, money is not the biggest motivator for staying in the workforce.
“This study turns conventional wisdom on its head,” said Andy Sieg, head of Global Wealth and Retirement Solutions for Bank of America Merrill Lynch. “By embracing these new realities and attitudes toward work in retirement, everyone from policy makers to employers and the financial industry will be better equipped to help people pursue their goals.”
Let’s take a look at four popular retirement myths debunked by the extensive study of more than 7,000 respondents across the nation.