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The Changing Face of Retirement
The retirement that your parents or grandparents experienced is likely to have been much different from the way your life will be once you leave the workforce. MSN notes seven ways in which retirement has changed:
People are retiring later. The Employee Benefit Research Institute (EBRI) says that the percentage of workers who expect to retire after age 65 has risen dramatically, from 11 percent in 1991 to 37 percent in 2016. However, not everyone makes it to their planned retirement date: Although 26 percent of workers say they plan to work until they are 70, only 8 percent actually wait that long to call it a career.
More retirees live in urban centers. Retirees past often planned to move to a house on a lake or a cabin in the woods. But today’s retirees want to be where the action is. According to AARP, about one-third of all urban rental applications are from people over 60.
Retirees remain active. Although retirees might want to live in the city, they want to get outside and into nature. Activities like camping, hiking biking, fishing and birdwatching are becoming increasingly popular with retirees.
Retirees often are healthier – to a point. The number of people 80 and older who are in good health has risen over the decades. However, there seems to be a leveling off or even a decrease in the number of pre-retirees who are in good health, mainly because of poor diet and the accompanying issues such as diabetes and obesity.
More people choose to retire abroad. The Associated Press says that the number of Americans retiring abroad rose 17 percent between 2010 and 2015. Some 400,000 expatriates were living abroad in 2015.
Fewer retirees are downsizing. Previous retirees often sold the large houses where they had raised their families and moved into smaller homes that were easier to care for and more affordable. But that trend is reversing, according to a Merrill Lynch-Age Wave survey. About half of retirees did not downsize on their last move, and 30 percent actually bought larger houses so that friends and family could come visit.
Retirees plan to leave less to their kids. If your kids are planning on collecting an inheritance, they could be disappointed. A 2015 HSBC survey of working people in the U.S. and 14 other countries discovered that 23 percent wanted to spend all their money, leaving no cash to their children. Only 9 percent wanted to spend as little as possible and leave a large estate to their heirs.