5 Views of How the Vision (and Reality) of Retirement Has Changed

Financial professionals are in near-universal agreement that retirement planning is more complicated in the United States today than it was for previous generations.

A big reason, advisors say, is that Americans’ financial lives have themselves become so much more complicated, not least because total responsibility for retirement preparedness has been pushed onto the shoulders of people who often have little financial expertise.

Among the most notable macro retirement trends is the shift away from defined benefit pensions, which guarantee lifetime income for “beneficiaries,” towards defined contribution savings accounts. These DC plans, at least as of early 2023, do not broadly offer the necessary infrastructure or advisor support to allow “participants” to efficiently structure and protect their retirement incomes.

But the financial complexity is just one part of the challenge, advisors agree. Americans are, broadly speaking, enjoying significant increases in longevity relative to prior generations, and the retirement period that traditionally may have lasted 10 or 15 years can now cover multiple decades. This fact raises many questions about lifestyle and the meaning of “life after work.”

Ultimately, today’s financial advisors who are serving pre-retiree and retired clients have a lot to consider as they run their businesses and seek to position their clients for success. Fortunately, there are more resources than ever available to help advisors in this area, and there is no shortage of knowledge sharing happening among industry professionals.

In that spirit, see the gallery for retirement insight from five experienced financial advisors.

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