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Retirement

4 ways seniors are improving their lives long after retirement

By Nathan Place
May 23, 2023 7:05 PM
A study by Edward Jones found that American seniors continue to make "course corrections" long into their retired lives.
Adobe Stock/Kostiantyn

Like any other phase of life, retirement requires a certain amount of improvisation. Planning is important, but so is the ability to tweak or alter those aims when necessary. Luckily, new research shows, most retirees are up for the challenge.

A recent study by Edward Jones, the St. Louis-based financial services giant, found that large majorities of retirees in the U.S. and Canada are willing to make significant changes, or "course corrections," to improve their lives — not just before retirement, but during it.

In conjunction with the research firm Age Wave, the firm surveyed 7,034 retirees across North America. Of those respondents, 93% agreed that "flexibility and willingness to adapt" were key ingredients for a successful retirement.

"What came through overwhelmingly … was that the biggest thing is actually not any particular choice, but rather our mindset, in that we are willing to make adjustments," said Lena Haas, the head of wealth management advice at Edward Jones. "We don't see retirement as this very static picture — 'I'm going to retire next year and live in my perfect lake house' — but rather, things happen, and we adapt and take action."

Specifically, the study divided these adaptations into four categories: health, finances, family and purpose. In each category, the vast majority of retirees were willing to make changes: 88% were open to a course correction for their health, 96% said the same for their finances, 85% for their family lives and another 85% for their sense of purpose.

To implement these changes, many retirees turned to wealth managers for help. Twenty-seven percent of the retired respondents said they were working with a financial advisor, an arrangement that significantly boosted their confidence — and 94% of that cohort felt they could handle financial changes in retirement. 

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Many financial planners have seen — and encouraged — such course corrections.

"The changes are important because life changes," said Nicholas Bunio, a certified financial planner at Retirement Wealth Advisors in Downingtown, Pennsylvania. "People move, people get sick, people fall into money, or get stuck with a sudden bill. Life is unexpected."

Here are four of the ways retirees are adapting to life and making it better in the process:

Health

Physical health is always important to one's quality of life, but in retirement it becomes crucial. Almost 95% of Americans aged 60 and older have at least one chronic health condition, according to the National Council on Aging. 

According to Edward Jones' study, many retirees are willing to do something about it. Forty-nine percent of U.S. seniors said they'd made an effort to be more physically active, and of those who did so, 57% said it made a significant improvement in their lives. Another 48% said they had meaningfully changed their diet, and 47% of them said this made a significant impact.

Interestingly, only 24% of American retirees said they'd reduced their consumption of alcohol, but of those who did, 50% said this significantly increased their quality of life.

"There is a good understanding that with chronic diseases, such as diabetes, on the rise, there is a real need to take action," Haas said. "And we also saw that when people take action … that can dramatically improve their overall well-being."

Finances

Seniors were also willing to change course on their finances, which is especially important today's high-inflation economy. As of April, the consumer price index was still rising at 4.9% per year — a considerable drop from last spring, but still the highest rate of inflation in 15 years.

Retirees have proven willing to adapt. Almost half — 49% — said they'd reduced their everyday expenses and 42% said they were sticking to a budget. Meanwhile, an impressive 51% said they'd reduced or eliminated their debt, which appeared to make a big difference — 60% of these debt reducers said this significantly improved their lives.

As Haas pointed out, the statistics are a reminder that retirement savings don't have to end as soon as one retires.

"Oftentimes people feel like, 'Gosh, unless we started saving for retirement very early on, right after we graduated from college, there's very little that we can do,'" Haas said. "And in fact, that's not true at all. There are a lot of course corrections that are relatively minor … but that can make a very significant financial impact."

Family

Perhaps the most complex category of course correction was regarding family life. The study found that retirees increased their happiness not only by spending more time with certain people, but also by spending less time with others.

On the positive side, 56% said they were spending more quality time with family, and 37% said they were helping more to take care of their grandchildren. Only 19% relocated to live closer to family, but for those who did, it paid off enormously — just over half said this significantly improved their quality of life.

More surprisingly, almost half of retirees — 45% — said they'd limited their time with "toxic" family or friends. Of those, 59% said this made a significant improvement in their lives. Meanwhile, nearly three in 10 said they'd had to set financial or personal boundaries with family members.

"Time and money need to be really intentional in retirement," Haas said. "It goes both into the emotional well-being as well as financial — setting the boundary that we're not actually a family bank. We are willing to help you, but only to a certain extent."

Purpose

The final category is more abstract, but still highly important: finding a sense of purpose.

Retirees did this in many ways. Twenty-one percent sought out volunteer work, 32% found new hobbies or creative activities, and 38% reconnected with old friends. But the most impactful course correction of all was adopting a pet — just over 1 in 3  had done so, and a whopping 71% said it improved their lives.

Some wealth managers are familiar with this kind of course correction.

"One common thread I see people following is the 'semi-retirement' phase where they trade in the full-time rat race in a job they don't love for a part-time hobby or job they find enjoyable," said Julia Colantuono, a certified financial planner at One Financial Design in Boston. "The income from part-time work can go a long way, and they get to live a life they truly love."

Wherever it comes from, Haas said, the important thing is that retirees gain a sense of meaning and direction.

"They know why they get out of bed in the morning," she said. "People are redefining retirement, and it's a time to be active and productive."
Nathan Place
Retirement reporter, Financial Planning
Retirement Practice and client management Edward Jones
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