The Changing Nature of Retirement discusses why aging Boomers will have an enormous impact on not just the financial-services industry, but also the US economy as a whole. The report encompasses all financial areas—such as investments, advice, credit, and insurance—and includes more than 90 figures and a dozen tables. Read more about the report

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Table of Contents

Introduction	1
How We Did This Analysis	2
Background	4
Executive Summary, Findings, and Implications	6
Detailed Findings	13
Analysis of 20-Year Trends (Trend Charts)	13
Retirement-Account-Ownership Incidence Trend	13
Retirement-Account Mean-Balance Trends	19
Retirement as a Savings and Investment Goal	25
Retirement Attitudes	28
"I will rely on Social Security for my retirement income."	28
"I would save more for retirement if it were tax deductible."	29
"I don't know how much to save for retirement."	30
"It is better to enjoy your money now than to save for old age."	32
"I expect an inheritance that will increase my retirement income."	33
"I need expert help in retirement planning."	35
"I expect to spend most of my wealth before I die."	36
"If my home were not increasing in value, I would need to save more than I currently do."	38
Demographics	39
Financials	51
Balance Sheet	51
Insurance: Property/Casualty Insurance	79
Channel and Transactions	87
Financial Advice and Advisors	91
Financial Attitudes	101
The Devil You Know	102
Rise of the Machines	103
Self-Reliance	105
People Needing Other People	106
Appendix: References and Resources	A-1

List of Charts and Tables

Number	Title	Page
Introduction		1
How We Did This Analysis		2
Background		4
Executive Summary, Findings, and Implications		6
Figure 1	Number of Households by Retirement Balances and Age of Primary Head	7
Figure 2	Why the Revolving Retired Are Now Working	9
Figure 3	Current Focus in Retirement	10
Detailed Findings		13
Analysis of 20-Year Trends (Trend Charts)		13
Figure 4	Twenty-Year Trend: Incidence of Household Retirement Product Ownership	13
Figure 5	Twenty-Year Trend: Retirement Product Ownership by Primary Household Heads Age 75 and Older	14
Figure 6	Twenty-Year Trend: Incidence of Retirement Product Ownership by Primary Household Heads Age 55–74	14
Figure 7	Twenty-Year Trend: Incidence of Retirement Product Ownership by Primary Household Heads Age 35–54	15
Figure 8	Twenty-Year Trend: Incidence of Retirement Product Ownership by Primary Household Heads Under Age 35	16
Figure 9	Twenty-Year Trend: Incidence of Retirement Product among Preretired Primary Household Heads	17
Figure 10	Twenty-Year Trend: Incidence of Retirement Product among Younger Retired Primary Household Heads	17
Figure 11	Twenty-Year Trend: Incidence of Retirement Product among Older Retired Primary Household Heads	18
Figure 12	Twenty-Year Trend: Mean Balance in Retirement Accounts among All Households with Retirement Products	19
Figure 13	Twenty-Year Trend: Mean Balance in Retirement Accounts among Primary Household Heads Age 75 or Older	20
Figure 14	Twenty-Year Trend: Mean Balance in Retirement Accounts among Primary Household Heads Age 55–74	21
Figure 15	Twenty-Year Trend: Mean Balance in Retirement Accounts among Primary Household Heads Age 35–54	22
Figure 16	Twenty-Year Trend: Mean Balance in Retirement Accounts among Preretired Primary Household Head	23
Figure 17	Twenty-Year Trend: Mean Balance in Retirement Accounts among Younger Retired Primary Household Head	23
Figure 18	Twenty-Year Trend: Mean Balance in Retirement Accounts among Older Retired Primary Household Head	24
Figure 19	Twenty-Year Trend: Retirement is Savings or Investing Goal by Age of Primary Household Head	25
Figure 20	Twenty-Year Trend: Retirement is Savings or Investing Goal (By Retirement Status)	26
Figure 21	Twenty-Year Trend: "Retirement is my household's most important savings and investing goal." by Age of Primary Head of Household	27
Figure 22	Twenty-Year Attitude Trend by Retirement Status: "Retirement is my household's most important savings or investing goal."	28
Retirement Attitudes		28
Figure 23	Twenty-Year Attitude Trend by Age: "I will rely on Social Security for my retirement income."	29
Figure 24	Twenty-Year Attitude Trend: "I would save more for retirement if it were tax deductible."	30
Figure 25	Twenty-Year Attitude Trend: "I don't know how much to save for retirement."	31
Figure 26	Twenty-Year Attitude Trend: "It is better to enjoy your money now than to save for old age."	33
Figure 27	Twenty-Year Attitude Trend: "I expect an inheritance that will increase my retirement income."	34
Figure 28	Twenty-Year Attitude Trend: "I need expert help in retirement planning."	36
Figure 29	Twenty-Year Attitude Trend: "I expect to spend most of my wealth before I die."	37
Figure 30	Twenty-Year Attitude Trend: "If my home were not increasing in value, I would need to save more than I currently do."	39
Table 1	Twenty-Year Trend: Household Head by Age	40
Table 2	Twenty-Year Trend: Household Head by Life Stage and Retirement Status	41
Figure 31	Two-Decade Trend: Income by Age and Retirement Status	42
Figure 32	Two-Decade Trend: Marital Status of All Households	43
Figure 33	Two-Decade Trend: Marital Status By Age	44
Figure 34	Two-Decade Trend: Marital Status by Primary Head of Household	45
Figure 35	Two-Decade Trend: Education of Primary Household Head	46
Figure 36	Two-Decade Trend: Primary Head Has a Four-Year College Degree or More	47
Figure 37	Two-Decade Trend: Single-Family Home Ownership	48
Figure 38	Two-Decade Trend: Residence is a Condo, Townhouse, or Apartment by Age	48
Table 3	Two-Decade Comparison: Area of Residence	49
Table 4	Two Decade Comparison: Ethnicity	50
Financials		51
Balance Sheet		51
Figure 39	Two-Decade Trend: Net Worth by Age and Retirement Status	51
Figure 40	Two-Decade Trend: Investable Assets by Age and Retirement Status	52
Figure 41	Two-Decade Trend: Home Equity by Age and Retirement Status	52
Figure 42	Two-Decade Trend: Total Liabilities by Age and Retirement Status	53
Figure 43	Two-Decade Trend: Incidence of Debt-Free Households by Age and Retirement Status	54
Table 5	Differences Between 1996 and 2016: Incidences of Liabilities	55
Table 6	Mean Amount in Household Debt: Proportion of Difference 1996 to 2016	56
Figure 44	Twenty-Year Trend: Incidence of Debt among Household Heads Age 75 and Older	57
Figure 45	Two-Decade Trend: Amount of Debt among Primary Heads Age 75 and Older	58
Figure 46	Two-Decade Comparison: Incidence of Debt among Primary Household Heads Age 55–74 and Age 75 and Older	59
Figure 47	Two-Decade Comparison: Amount of Debt among Household Heads Age 55–74 and Age 75 and Older	60
Figure 48	Two-Decade Comparison: Incidence of Debt among Primary Household Heads Age 35–54 and Heads Age 55–74	61
Figure 49	Two-Decade Comparison: Amount of Debt among Primary Household Heads Age 35–54 and Age 55–74	62
Table 7	Difference in Household Ownership for Most Major Types of Assets from 1996 to 2016	63
Table 8	Change in Inflation-Adjusted Mean Balances in Assets from 1996 to 2016	65
Figure 50	Two-Decade Trend: Incidence of Assets among Primary Household Heads Age 75 and Older	66
Figure 51	Two-Decade Trend: Amount in Assets among Primary Household Heads Age 75 and Older	67
Figure 52	Two-Decade Comparison: Incidence of Assets among Primary Household Heads Age 55–74 and Age 75 and Older	68
Figure 53	Two-Decade Trend: Incidence of Retirement Accounts among Primary Household Heads Age 55–74	69
Figure 54	Two-Decade Trend: Amount in Retirement Accounts among Primary Household Heads Age 55–74	69
Figure 55	Two-Decade Comparison: Incidence of Retirement Accounts among Primary Household Heads Age of 55–74 and Age 75 and Older	70
Figure 56	Two-Decade Comparison: Amount in Retirement Accounts among Primary Household Heads Age 55–74	71
Figure 57	Two-Decade Comparison: Incidence of Assets among Primary Household Heads Younger Retired and Older Retired	72
Figure 58	Two-Decade Comparison: Amount in Assets among Primary Household Heads Younger Retired and Older Retired	73
Figure 59	Two-Decade Comparison: Incidence of Retirement Accounts among Primary Household Heads Younger Retired and Older Retired	74
Figure 60	Two-Decade Comparison: Amount in Retirement Accounts among Primary Household Heads Younger Retired and Older Retired	74
Figure 61	Two-Decade Comparison: Incidence of Assets among Primary Household Heads Age 55 to 74 and Younger Retired	75
Figure 62	Two-Decade Comparison: Amount in Assets among Primary Household Heads PreRetired and Younger Retired	76
Figure 63	Two-Decade Comparison: Incidence of Retirement Accounts among Primary Household Heads Preretired and Younger Retired	77
Figure 64	Two-Decade Comparative: Amount in Retirement Accounts among Primary Household Heads Preretired and Younger Retired	78
Insurance: Property/Casualty Insurance		79
Figure 65	Two-Decade Trend: Incidence of Homeowners or Renters Insurance by Age and Retirement Status	79
Figure 66	Two-Decade Trend: Incidence of Vehicle Insurance by Age and Retirement Status	80
Figure 67	Twenty-Year Trend: Incidence of Any Health Insurance by Age and Retirement Status	81
Figure 68	Two-Decade Trend: Incidence of Individual Health Insurance by Age and Retirement Status	82
Figure 69	Two-Decade Trend: Incidence of Any Life Insurance by Age and Retirement Status	83
Figure 70	Two-Decade Trend: Incidence of Any Group Life Insurance by Age and Retirement Status	83
Figure 71	Two-Decade Trend: Incidence of Any Individual Life Insurance by Age and Retirement Status	84
Figure 72	Two-Decade Trend: Incidence of Any Term Life Insurance by Age and Retirement Status	85
Figure 73	Two-Decade Trend: Incidence of Any Whole Life Insurance by Age and Retirement Status	85
Figure 74	Two-Decade Trend: Incidence of Any Universal, Variable, or Interest-Sensitive Life Insurance by Age and Retirement Status	86
Channel and Transactions		87
Figure 75	Two-Decade Trend: Household Use of FinancIal Institutions	87
Figure 76	Trust Specific Institutions a Great Deal	88
Figure 77	Two-Decade Trend: Number of Financial Relationships	89
Figure 78	Two-Decade Trend: Number of Financial Products	90
Figure 79	Two-Decade Trend: Mean Number of Annual Financial Transactions	90
Financial Advice and Advisors		91
Figure 80	Two-Decade Trend: Receive Advice Before Making Major Financial Decisions	91
Figure 81	Two-Decade Trend: Type of Financial Professional Used in the Past Two Years	92
Figure 82	Two-Decade Trend: A Great Deal of Trust in Type of Financial Professional	93
Figure 83	Trust in Financial Professionals a Great Deal by Age	94
Figure 84	Two-Decade Trend: How Household Interacts with Financial Professionals	95
Figure 85	Two-Decade Trend: Collaborator and Delegator Households	96
Figure 86	Two-Decade Trend: How Household Prefers to Interact with Financial Professionals	96
Figure 87	Two-Decade Trend: Sources for Financial Information	97
Figure 88	Two-Decade Trend: Interest in Learning More About How...	98
Figure 89	Two-Decade Comparison 1996–2016: Life Events in the Past Two Years	99
Financial Attitudes		101
Table 9	Comparison of Top 10 Financial Attitudes: 1996 to 2016	101
The Devil You Know		102
Table 10	Attitude Comparison 1996 to 2016: The Devil You Know	102
Figure 90	Two-Decade Trend: Would Never Get a Variable-Rate Auto Loan	102
Rise of the Machines		103
Table 11	Attitude Comparison 1996 to 2016: Rise of the Machines	103
Figure 91	Two-Decade Trend: Would Rather Use an ATM, PC, Phone, or Mail	103
Figure 92	Two-Deacde Trend: Automatic Savings is Best	104
Self-Reliance		105
Table 12	Attitude Comparison 1996 to 2016: Self-Reliance	105
Figure 93	Two-Decade Trend: Extremely or Very Confident Household Will Reach Most Important Financial Goals	105
People Needing Other People		106
Table 13	Attitude Comparison 1996 to 2016: People Needing Other People	106
Figure 94	Twenty-Year Trend: Would Buy a Retirement Savings Account by Channel	107
Figure 95	Two-Decade Trend: Channel for Obtaining Retirement-Savings Account	108
Appendix: References and Resources		A-1