Chances are Americans -- and certainly Boomers -- will be happy to see the year 2020 come to a close. Too many of us have had to deal with the unanticipated health, social and financial impacts of the pandemic. And it is likely that the effects of 2020 will linger long into next year.

One of the key financial challenges for Boomers is the "COVID recession." According to retirement expert Teresa Ghilarducci of The New School, "about 50 percent of workers over the age of 55 will be poor or near-poor adults when they reach 65." One of the reasons for this, says Ghilarducci, is that "Older workers are losing their jobs at a faster rate, relative to younger people and relative to where they had been before than they were in the Great Recession. ...When older workers lose their jobs, they lose access to savings. They lose their employer's contribution, and they face the temptation of drawing down their retirement assets."

Still, those Boomers with at least $100,000 in investable assets, including their retirement savings, are more optimistic, reports Charles Schwab, based on its "2020 Modern Retirement Survey." The survey of 2,000 Americans age 55 to 75 indicates that 84 percent believe their quality of life in retirement will be better than that of their parents. On average, the survey respondents have accumulated $920,400 in retirement savings, and 82 percent of them think this amount will take them "all the way" or "most of the way" to living out the retirement of their dreams. But Rob Williams, VP of financial planning and retirement income at Charles Schwab cautions that this amount "will only last about seven years at their expected spending rate." He says that Boomers "may have other sources of income like Social Security, but the only way retirees can make sure the math adds up is by putting pen to paper and having a plan in writing."

TIAA's recent "Financial Resiliency Survey" provides a broader look at the American public's view of the future. In July, TIAA surveyed 3,040 Americans age 25 to 70 with a household income of at least $40,000. Nearly 60 percent of adults said the pandemic caused financial stress, and now two-thirds of them want to save more money. One third of respondents had their employment affected, 26 percent took on more debt and 18 percent were forced to dip into an emergency fund. Despite this, 90 percent of workers said saving for retirement is a current financial goal -- but only 40 percent think they are on track with their retirement savings and 27 percent said they are far from on track. One key problem is that Americans generally don't look far enough ahead: 56 percent said they only consider the next 12 months when it comes to financial planning, and less than 3 in 10 individuals said they typically consider 5-plus years into the future. When asked what contributes most to financial resiliency, 59 percent of those age 60 to 70 and 53 percent of those age 50 to 59 said "having more set aside in retirement savings."

How does your thinking compare with the Boomers who responded to the above surveys? Are you looking ahead with cautious optimism as we prepare to enter next year? Here's hoping the lingering effects of 2020 are short-lived -- and 2021 brings a semblance of sanity and a financial rebound for all of us.

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As a Boomer, can you actually design a better future?

That's an intriguing question at the heart of a recent project called "Co-designing with Older People." Alive Ventures founder, designer, and social entrepreneur John Zapolski created the project in collaboration with human-centered design innovator Ayse Birsel, with backing from non-profit The SCAN Foundation - which funds projects to improve the lives of older adults. Ayse Birsel, principal at Birsel + Seck Design Studio, is author of the book, Design the Life You Love: A Step-by-Step Guide to Building a Meaningful Future.  The project was a year-long study engaging with 250+ seniors (65 and older) across the country in 15 workshops. It was done to gain insight into what older people want and to encourage designers and businesses to "co-design" with older people.

Some of the learnings that came out of the study are worthy of consideration. For example, the study found that rather than being defined by worries, older people are generally "optimistic, interesting, resilient, dynamic, curious and courageous." They do what they love and enjoy things they had no time for when they were younger. Particularly interesting is the fact that seniors "are craving new kinds of experiences: Experiences that are designed for them and by them, rather than someone else's ideas of what older people should be doing."

There was also a sobering part of the study: "Aging isn't inherently a problem. The challenge is that social constructs, institutions and services have failed to support all of us as we age. In fact, they've failed the people who are living the longest."

I thought some of the quotes from seniors who participated in the study were indicative of what we all want and the way we look at life. Here is just a sampling:

I want to connect, teach and share the art of living with people of all ages. I have a lifetime of experience to share.

I want to get things done with joy and feel good about how I spend my time, without feeling guilty about productivity.

I want to find work that I enjoy, that I can search and evaluate based on things that matter to me -- how much I want to travel for it, the type of work, the social environment, what I get in return -- connections, money, intellectual stimulation or a combination.

I find big tasks daunting. Tasks like downsizing and moving to a new smaller place, or writing my family history book. I'd like help with breaking these into smaller steps, manage my time and energy while feeling accomplished.

I am tired of feeling invisible. I want to be visible physically with color and great design and the courage to deploy them.

What I'm most proud of at this point in my life is my ability to never give up on the goal I wish to achieve...no matter how long it takes.

A 61-page report shares many insights, ideas and outcomes from the study. It makes for fascinating reading. You can download a PDF of the report by clicking the link below.

Download Co-Designing-with-Older-People

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Last time, I discussed some of the findings about Purpose in the study, "The Four Pillars of the New Retirement," issued recently by Edward Jones in association with Age Wave and The Harris Poll. Purpose was one of four pillars covered in the study: Health, Family, Purpose and Finances.

"The Four Pillars of the New Retirement" was a major study comprised of a comprehensive examination of 100+ North American studies, articles and publications; in-depth interviews with subject matter experts and financial advisors; online forums and focus groups;  a survey of 9,000 adults across five generations (18+), including retirees and working-age individuals, in the U.S. and Canada fielded in May and June 2020; and exhaustive analysis by team members. As the COVID-19 pandemic spread, the study was paused and modified to include specific information about the effect of the virus on retirement.

Now for Pillar 4: Finances.

Nearly half (46 percent) of retirees said the primary purpose of money is to "provide security for the unexpected," while 45 percent said it is to "give me the freedom to live how I want." Despite a major concern about their finances in retirement, more than three-fourths of those planning to retire have not figured out how much money they will need in retirement. More than one-third (36 percent) of retirees find managing money in retirement even more confusing than saving for it. More than half (56 percent) said they wish they had budgeted more for unexpected expenses in retirement. Both retirees and non-retirees agree that the greatest financial worry they have in retirement is healthcare costs, including long-term care. (Current data suggests that the average couple will need $300,000 for healthcare and $140,000 for long-term care.)

On the positive side, retirees and pre-retirees alike see the value of financial planning. More than half of both audiences are interested in receiving retirement-related guidance from a financial professional about "an investment strategy for my retirement savings to withstand market volatility," as well as "determining how to best draw from investments in retirement."

This concludes my review of "The Four Pillars of the New Retirement." To gain access to a PDF of the complete report, simply click the link below.

Download FourPillarsReport

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Last time, I discussed some of the findings about Family in the study, "The Four Pillars of the New Retirement," issued recently by Edward Jones in association with Age Wave and The Harris Poll. Family was one of four pillars covered in the study: Health, Family, Purpose and Finances.

"The Four Pillars of the New Retirement" was a major study comprised of a comprehensive examination of 100+ North American studies, articles and publications; in-depth interviews with subject matter experts and financial advisors; online forums and focus groups;  a survey of 9,000 adults across five generations (18+), including retirees and working-age individuals, in the U.S. and Canada fielded in May and June 2020; and exhaustive analysis by team members. As the COVID-19 pandemic spread, the study was paused and modified to include specific information about the effect of the virus on retirement.

Now for Pillar 3: Purpose.

The report suggests that "Retirees with a strong sense of purpose are happier and healthier, more active and more socially engaged, and they live longer. ... They want to feel useful more than youthful."

How do retirees pursue purpose? One way is through relationships: 87 percent of retirees indicated they prioritize staying in touch with family and friends who don't live with them. In terms of personal sources of purpose, meaning and fulfillment, 76 percent said "spending time with loved ones" was their top choice, 67 percent said "being true to myself," and 64 percent said "doing interesting and enjoyable things."

New retirees find it challenging to have a sense of purpose after they retire from their jobs. Almost a third (31 percent) of retirees who have been retired less than five years said they struggled to find a sense of purpose in retirement. Retirees miss people and social stimulation in the workplace more than money: 41 percent miss the social aspects of working the most vs. 20 percent who miss the paycheck and benefits. Retirees also struggle to find good post-work avenues for fulfillment: Only 24 percent of today's retirees have volunteered, and only 50 percent of adults age 50-plus would like to serve as a mentor. Still, 95 percent of retirees said it's important to keep learning and growing.

There seems to be a great untapped potential in the country's retired population: 89 percent of Americans across all generations feel "there should be more ways for retirees to use their talents and knowledge for the benefit of their communities and society." A considerable majority of every generation would like younger and older generations to take more time to learn from one another; the percentages for each generation are: Gen Z 83 percent; Millennial 84 percent; Gen X 90 percent; Boomer 94 percent; Silent Generation 98 percent.

Next time: Pillar 4: Finances.

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