Americans Living ‘More Intentionally’ in Retirement Post-Pandemic

It’s been several years since the pandemic began, and its impact is still felt, as many Americans now opt for a non-traditional approach to retirement.

According to Fidelity Investments, 66% of respondents say the pandemic made them more “intentional” about focusing on their personal passions and dreams in retirement, with Millennials leading the charge at 73%.

Traditional retirement no longer holds much appeal for more than half of Gen Z and Millennials, who are encouraged by the rise of remote work and are more likely than their older counterparts to travel, relocate to somewhere scenic or abroad, or take a chance on starting their own business in retirement.

Across generations, two-thirds look forward to pursuing work for pleasure while in retirement and hope for a phased retirement – working full-time at first, then part-time, before stopping altogether.

“Americans are approaching their ‘golden years’ with more intention and opportunity than ever before,” Rita Assaf, Vice President of Retirement Products at Fidelity Investments, said in a statement. “We’re encouraged to see a growing understanding of the value in creating a retirement plan early, which helps people map out the best strategy for reaching their goals.”

High Confidence/Higher Challenges

Despite what Fidelity claims is one of the most challenging and unpredictable economic environments in recent history, three-quarters of respondents expressed confidence about retiring when and how they want, although many women and older generations were less confident than their male and younger counterparts.
Improving market performance in the fourth quarter played a part, with the firm’s latest data showing retirement account balances at the highest in two years. 

However, many concerns remain. Compared to their parents’ retirement, over half of younger generations (56% of Gen Z and 57% of Millennials) believe they’ll have a harder time saving for retirement due to the higher cost of living (compared to only 16% of Boomers and 38% of Gen X).

Across generations, inflation, consumer debt and building emergency savings are the main barriers to reaching retirement savings goals; although younger people also cite additional challenges such as student debt, saving for a home and wedding, as well as childcare costs. Given these common hurdles, all generations wish they had started planning for retirement earlier, including Gen Z, who started planning at an average age of 20.