Generational Trends & Investments
Writer / Julie Yates
Photography Provided
In past times, retirement was thought of as the golden years of leisure, when hobbies could be pursued. A June 2021 study, commissioned by financial services company Edward Jones in conjunction with Age Wave, has shed light on how views of retirement have changed. Titled The Four Pillars of the New Retirement, the comprehensive poll gathered information and insights across five generations.
Today, the majority of people view retirement as a new chapter in life where they can continue to contribute to society. Edward Jones has identified four interconnected aspects, that are not solely connected to money, but are essential to consider when planning for retirement. These comprise the four pillars of health, family, purpose and finances. Steve Rector, AAMS®, a financial planner at the Kokomo branch of Edward Jones has gleaned insights from the study.
The study revealed some interesting generational differences across the four pillars, Rector says. From a health perspective, which is the first pillar, I am truly inspired by the mental fortitude older generations have developed over time. I’m sure I’m not the only one who may be surprised to learn that while, understandably, most retirees report physical health to be on the decline, they said that their mental health, emotional and psychological wellbeing, actually improved.
The study also identified, however, that the biggest fear retirees face is the loss of cognitive abilities and subsequently becoming a burden on their families. Concern of developing Alzheimers or dementia ranked highest, surpassing worries of getting COVID or even developing cancer. Since most of our elderly population are so resilient, it’s no wonder their biggest fear is the loss of cognitive ability, Rector added.
Another interesting find was that retirees in small cities or towns actually report higher levels of mental well-being compared to those in big cities or even rural settings. To me, this screams the importance of community and the connections that people form, and that we never really grow out of that, Rector says.
The second pillar, family, highlighted the trait of generational generosity. Almost three quarters of those 50 and older are willing to provide financial support to family, even if it jeopardizes their own financial security. Younger generations, often portrayed as self-involved, actually gave and/or loaned money to family and friends during COVID: 41% of Generation X (those born from 1965 to 1980), 43% of Millennials (those born from 1981 to 1997), and 48% of Generation Z (those born from 1995 to 2015).
Purpose is the third pillar and it relates back to family, Rector adds. Retirees may have all kinds of things on their bucket lists, but what they desire most is to be connected with loved ones. Their greatest source of meaning and fulfillment in retirement is spending time with their friends and family.
The fourth and final pillar, finances, revealed that one in three of those who are nearing retirement think they will now retire later due to COVID. The pandemic was seen as a financial wake-up call for over 70% of those surveyed, Rector says. One-third now contribute more to retirement savings due to the pandemic, with Millennials leading the way at 42%.”
Most surveyed said they strongly prefer a financial guide, someone who is more of a partner in understanding their goals and can help them achieve them, rather than just an investment advisor. First and foremost, at Edward Jones, we want to really get to know our clients and their families. We have an established, time-tested process of helping people clarify their goals and then work through a plan comprised of strategies that are tailored specifically for them. And because our individual offices are interwoven throughout communities, we are thankfully able to be involved in meaningful ways. This allows us to partner for life with multiple generations, and it’s truly a beautiful journey to experience with people.
Rector has lived in Kokomo for the last 15 years. He and his wife Tasha, a Kokomo native, have an 11-year-old son, Nolan and a nine-year-old daughter, Natalie. While he is involved with several community organizations, one of his biggest passions is helping facilitate Kokomos annual Walk to End Alzheimer’s. This years event will be held on Saturday, October 2, in Foster Park.
Kokomo is a resilient community and the people here have become my people, he says. I do what I do because I love helping them take their next step, whatever that may be, toward improving their family’s financial security and future. There is nothing more rewarding or fulfilling than having those opportunities to help in such impactful ways.
Edward Jones is located at 2985 S. Webster Street in Kokomo, IN. For more information, visit www.steve.rector.com, or call 765-450-5301.
Information on Kokomo’s Walk to End Alzheimers can be found at bit.ly/alzsteve and the 24/7 Alzheimers Hot Line can be reach at 1-844-440-6600.
