New Retirement Mindscape study

[walkinwood]

I came across this article and found it interesting. Never mind the sponsor - the study surveys people and their attitudes/feelings towards retirement. (The report focuses on standard retirement age, but I saw parallels to ER in it)

Ameriprise Newsroom | New Retirement Mindscape II Study: The Stages of Retirement Have Changed

What's a study without slicing and dicing the data?

The New Retirement Mindscape IISM study, conducted by telephone by Harris Interactive, uncovered six distinct attitudinal and behavioral stages that occur before and during retirement: 1) Imagination, 2) Hesitation, 3) Anticipation, 4) Realization, 5) Reorientation and 6) Reconciliation. This compares to five stages that were identified in the previous study: 1) Imagination, 2) Anticipation, 3) Liberation, 4) Realization and 5) Reorientation.

It ends on a positive note:

“Coming out of the recession, it may not be surprising that people – especially those who are closest to their retirement day – are looking at this important milestone differently,” added Brimhall. “However, I’m encouraged to see consumers in some stages take a more proactive approach to planning and saving. I believe that the more people understand the stages of retirement and prepare themselves – emotionally and financially – the more likely it is they’ll have the confident and fulfilling retirement they desire.”

There is a link to the whole report on the page.

 

[W2R]

Interesting article, but I am finding it hard to relate to the feelings described.

During the first year of retirement, "Realization", people apparently have some problems.

The decrease in positive feeling is dramatic – compared to 2005, far fewer are enjoying retirement “a great deal” (56% vs. 78%), say they are living their dream in retirement (45% vs. 68%) or feeling that retirement has worked out as they planned (57% vs. 77%).

I'll be in that first year of retirement until November 8th.

Years 2-15 after retirement are called "Reorientation".

After a difficult year of adjustment, most people enter the Reorientation stage feeling more “happy” (80%) and “on track” for retirement (69%) than they did in previous stages.

I'm sorry, but if I get any more happy and on track for retirement I think I'll explode. So far, this first year has been a hundred times better than I had ever imagined.



What really, REALLY surprises me is that apparently most new retirees are not as happy as I am. That is pretty hard to imagine. Do they miss getting up to the hideous sound of the alarm clock, before the sun rises? Do they miss the petty office politics, pointless interminable meetings, or tedious sexual harassment and discrimination in the workplace training sessions? Do they love having people tell them what to do with their time? Apparently I just don't understand their mindset.

 

[REWahoo]

What really, REALLY surprises me is that apparently most new retirees are not as happy as I am. That is pretty hard to imagine. Do they miss getting up to the hideous sound of the alarm clock, before the sun rises? Do they miss the petty office politics, pointless interminable meetings, or tedious sexual harassment and discrimination in the workplace training sessions? Do they love having people tell them what to do with their time? Apparently I just don't understand their mindset.

I'll start by saying I didn't read the article - I'm not sure I can force myself to click on anything associated with Ameriprise.

The question I have regarding happiness in retirement, especially in the first year, is how many of those surveyed were forced to retire vs. those who actively sought retirement? Seems to me that could make a huge difference in the survey responses...

 

[walkinwood]

W2R, since this is aimed at normal age retirees, some of them may not have a choice in when they retire. They may be retiring with a lot less than they hoped to

You fall in the 45% that is "Living their dream"

We've had people on this board who have had a rough first year of ER. Most of the time, it had nothing to do with finances.

ReWahoo - I'm in the middle of the full report and so far, no sales pitch. (Or, the whole doc can been seen as a sales pitch)

Added:
If you read the whole report, the parts I found most interesting begin on page 7
What is the best thing about retirement?
What is the hardest thing to deal with related to retirement?
What are the top priorities in retirement?

In my third year of ER, I find the non-financial aspects of retirement more interesting.

 

[MasterBlaster]

I must be in the Hestitation stage.

Funny thing though, While reading through the article I had the sudden urge to go buy some annuities.

 

[traineeinvestor]

Thank you for posting the link.

With somewhere between 15 months and three years to go, I'm in the anticipation stage - I thought I had been in that for at least a decade or so

One of the quotes I found interesting:

Expect to feel more empowered in retirement than in 2005 (60% vs. 49%). This may be because more are using a financial advisor (54% vs. 33%), have developed a written financial plan (50% vs. 35%) and determined the amount of money needed for retirement (68% vs. 56%) compared to 2005.

If more people are taking these steps because of the current recession (a point on which the report is silent), then maybe the recession is not all bad.

 

[Tesaje]

I've got 9 months into my retirement and I agree with W2R. Retirement is nothing but wonderful. And no, I don't miss any of things associated with work.

If a large porportion of those surved were forced into retirement, that would color the results. Those people are really among the unemployed.

 

[Delawaredave5]

Stages are interesting - and suprisingly close to the grief cycle (denial, anger, bargaining, depression, acceptance). Change creates anxiety.

I'll bet respondents were typical retirement age -65 - not ER.

How could you not be happy ? People have a lot more "mental anxiety" with retirement than I ever expected - some combination of influences:

• Not enough money
• Not enough hobbies
• Retirement = "too close to death"
• Work ethic burned in their brains

I don't get it. But I see it all the time with friends and people I know.

 

[Purron]

We've had people on this board who have had a rough first year of ER. Most of the time, it had nothing to do with finances.

I had a rough first year.

 

[Amethyst]

Some people miss being the "go-to" person they thought they were at work. Once they retire, nobody goes to them for anything, any more.

Inner resources aren't shared out equally.

Amethyst

What really, REALLY surprises me is that apparently most new retirees are not as happy as I am. Apparently I just don't understand their mindset.

 

[Khan]

Interesting article, but I am finding it hard to relate to the feelings described.

During the first year of retirement, "Realization", people apparently have some problems.

I'll be in that first year of retirement until November 8th.

Years 2-15 after retirement are called "Reorientation".



I'm sorry, but if I get any more happy and on track for retirement I think I'll explode. So far, this first year has been a hundred times better than I had ever imagined.



What really, REALLY surprises me is that apparently most new retirees are not as happy as I am. That is pretty hard to imagine. Do they miss getting up to the hideous sound of the alarm clock, before the sun rises? Do they miss the petty office politics, pointless interminable meetings, or tedious sexual harassment and discrimination in the workplace training sessions? Do they love having people tell them what to do with their time? Apparently I just don't understand their mindset.

I don't know if "happy" was the word I would use for the first ~six months of retirement. Maybe "relieved". I was mostly destressing, just being glad not to have to go there ever again.

After that, the "happy" did set in.

 

[Gone4Good]

What really, REALLY surprises me is that apparently most new retirees are not as happy as I am. That is pretty hard to imagine. Do they miss getting up to the hideous sound of the alarm clock, before the sun rises? Do they miss the petty office politics, pointless interminable meetings, or tedious sexual harassment and discrimination in the workplace training sessions? Do they love having people tell them what to do with their time? Apparently I just don't understand their mindset.

I'd wager that most of the people who are disappointed with their retirement didn't give a lot of thought to what they'd do with all of their free time. I can see how sitting around the house watching daytime T.V. would be pretty depressing.

 

[Nords]

About the study
The New Retirement Mindscape IISM and New Retirement Mindscape® studies were commissioned by Ameriprise Financial, Inc. and conducted by telephone by Harris Interactive in May 2010 and August 2005 among 2,007 (2010) and 2,000 (2005) U.S. adults age 40-75. The sampling error for the 2010 study is +/-2.5%. The 2005 study was conducted in conjunction with Age Wave and Ken Dychtwald, Ph.D.

IIRC Ken Dychtwald is no raging fan of retirement, either.

I think I'll wait for the peer-reviewed literature before I can draw any conclusions about the effect of a recession on ER.

They should've stuck with calling the first retirement stage "liberation". I spent years in "anticipation", and I'm still "stuck" in "liberation"!

 

[old woman]

I am just starting to want to retire at 62. I worry about not having to get up, shower, dress and walk out the door. I have a lazy streak and on days off I don't do much unless I am invited somewhere. I am not self motivated to do things.

I kinda like work besides some place to go people are nice to me and ask me to figure things out for them. I love problem solving and solving actual problems not just games. It feels like showing off if you already know the answer because you have solved the same problem before.

Now I am having eye problems that are minor so far, my boyfriend is only working 800 hours a year and is planning a two week fishing trip next summer and will have a lot of freedom. I am starting to resent not being able to take time off without a ton of planning and catching up when I get back.

So I am writing up instructions on how to do my job and training my boss to do it. I have over 500 hours vacation time saved. I told him I might need to have eye surgery and if it turns out bad not be back so he is starting to prepare to replace me.

But I don't think I will need eye surgery it might be nothing I see the eye doctor in two weeks.

I have about my goal amount saved but I think I should work until 65 in 30 months.

 

[rescueme]

I think I'll wait for the peer-reviewed literature before I can draw any conclusions about the effect of a recession on ER.

Yes, that would be interesting to see.

IMHO, a lot has to do with how you faced retirement in any down market/recession period based upon the "terms of retirement".

For example, I retired in mid-2007 so I was at the cusp of the next period of downward portfolio growth. However, I spent a lot of years planning for retirement (both financially and emotionally) so when things really got bad in 2008, it did not bother me at all. I had my cash buckets (I sold nothing) and life continued on as normal.

Unfortunately for those I worked with, the local office announced that they would be merging operations and moving to another state, a year after I retired. Only a few I formerly worked with had the opportunity to transfer. Since most of my co-workers were the same age as me at the time (late 50's - mid 60's), they were forced to retire earlier than planned.

Both faced retirement (one planned, one forced) but certainly different outcomes, based upon personal plans. I realize that I was both "smart" (by having a retirement income plan in place), but I also know that I was lucky to have a plan in place when it was most critical. My co-workers plan? Theirs was not to retire as early as mine and through no fault of their own faced a truly different "retirement".

I guess I'm saying that all retirements in an economic crisis are not equal...

 

[Midpack]

Interesting read, thanks! Several good points already made, I also thought it was interesting to finally see some statistics on "Retirement Triggers" as well - to add some perspective to that aspect. Part of this thread and countless others...

 

[Nords]

Interesting read, thanks! Several good points already made, I also thought it was interesting to finally see some statistics on "Retirement Triggers" as well - to add some perspective to that aspect. Part of this thread and countless others...

I wonder why Ameriprise neglected to include "achieved financial independence"?

 

[harley]

I wonder why Ameriprise neglected to include "achieved financial independence"?

Maybe they only polled their customers. Slow pitch, right down the tube.

 

[Midpack]

Maybe they only polled their customers. Slow pitch, right down the tube.

 

[ikubak]

Maybe they only polled their customers. Slow pitch, right down the tube.

That is too funny!!!!