COVID-19 caused more baby boomers to retire in 2020 than in any other year, and while traditionally retirees make more frugal spending decisions to leave a financial legacy for their family, this generation is ready to spend their days living it up, according to a new survey.
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According to a recent survey from Coventry, more than 75% of over 1,500 respondents are ditching the idea of leaving a nest egg for their family and plan to spend the remainder of their lifetime — and money — making memories, citing a dramatic shift in prioritization from material things to experiences.
Peter Hershon, SVP of Account Services at Coventry, told GOBankingRates that the challenges of COVID-19 put into perspective what is most important to baby boomers. “During the pandemic, seniors were at the highest health risk, more likely to be socially isolated and may have missed out on quality time with loved ones,” he stated. “Looking ahead, boomers are less focused on leaving a financial inheritance for the next generation — and would rather ensure their legacy by making priceless memories with those loved ones today.”
The survey notes that, hamstrung by the pandemic, baby boomers are feeling ready to break out of the house and live large following a year or more unable to travel, see loved ones and cross life experiences off their proverbial bucket lists. Indeed, the survey finds that when this age group was asked about the most important areas of their life to explore and deepen before they die, they prioritized family (41%) and travel (25%). This significantly outpaced learning (10%), hobbies (8%), romantic relationships (6%), philanthropic impact (6%) and careers (4%).
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When asked if they were clocking out permanently, 55% of baby boomers said that they are not considering an encore career tied to an interest or passion. In addition, most of them weren’t interested in working past age 65 to fund a richer lifestyle in retirement, as 79% said they would rather live modestly versus working until 75 and having a more luxurious retirement, according to the findings.
Hershon found those results to be particularly interesting, as a lot has been written about baby boomers taking a different approach to retirement than previous generations, including working longer or in a different capacity. “While it’s understandable that boomers would like to retire in full by age 65, it is not without its challenges,” he explained. “Boomers are facing a myriad of obstacles that increase their risk of outliving their savings — from low interest rates to rising healthcare costs. The key is ensuring that they have enough income that can…
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