The Four Pillars of the New Retirement - Pillar 3: Purpose
Designing a Better Future

The Four Pillars of the New Retirement - Pillar 4: Finances

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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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