The Shifting Meaning of Being Old, from an Investors view.
PRE-RETIREES VIEW THEIR TWILIGHT AS 3 DISTINCT PHASES OVER 30 YEARS!
"Old" is being 15 years older than whatever age we are now, to paraphrase Oliver Wendell Holmes. A new study by UBS Wealth Management Americans may bear that out as wealthy investors say they will not feel "old" until they are 80. But their parents are old at age 62.
"People do not see retirement as a sign of being old, as it was for their parents", said Emily Pachuta head of investor insights at UBS Wealth Managment for Americas. "What we're hearing from people is that age is nothing more than a number and the age when people feel old has gone way up."
A Survey of 2,319 invesor reveals that , rather than being a specific age, old is best defined when we loose the ability to live in our own home (71%) and drive our own car (67%).
Most (90%) of the working investors surveyed who were under the age of 65 - or "re-retirees" - believe retirement may last as long as 30 years, a life - stage defined in three phases. Retirment will begin with a period of reduced work hours or increased volunteerism, followed by a time of travel and leisure and finally a stage of health concerns and diminisheing independence.
"What investors are telling us is that retirement is one word, but it is not one phase," Pachuta noted. "People now see retirement as being one third of their expected life, and it is marked by distict phases each with different wants and needs."
The pre-retirees surveyed expressed an optimism regarding the financial resources they will need during these three stages of retirement. estimating 58% of their previous annual income would fund "Phase I" 63% for Phase II and 56% would support Phase IIIFinancial planners commonl estimate 75-80% of pre-retirement income is required to maintain financial security in retirement.
Additional highlight of the UBS survey include:
- Nearly half of investors desire to be travelling at age 65 compared with the 22% of respondents who said they want to remain working in some capacity at that age.
- 33% of the investors surveyed expected to change homes when they retire.
- Of the investors who have adult children between the ages of 18 and 29, 36% say they make key financial decisions for them or are always consulted on important financial matters.
Hal M. Bundrick, The Street