As America ages, more time must be spent planning for pastimes during retirement

The number of Americans aged 65 and older will more than double in the next 40 years, and more adults than ever are planning for their post-working years. While traditional retirement plans require ample conversations about savings for the future, less of the retirement conversation refers to how retirees intend to spend their days during their non-working years. New research from Lincoln Financial Group1 (NYSE: LNC) shows that 77% of Americans surveyed in their 50s and 60s see retirement as a phase of life during which they will finally be able to pursue the passions and pastimes they did not have time for during their working years. Despite the desire to plan for exactly what they want to do in retirement, only 11% of pre-retirees say they have done a lot of planning for pastimes in retirement.

Establishing plans with a professional

Many Americans approaching retirement work with a financial professional to ensure accurate planning, saving and investing, yet they are not spending the time needed to ensure a lifetime of enjoying their passions. To create a lifestyle, complete with time and funds to explore these passions and pastimes, and to ensure that loved ones can be part of this plan, more energy must be put toward a plan for these activities.

• The research shows that 87% of individuals in their 50s and 60s who work with a financial professional have discussed an investment strategy for retirement, but only 53% have discussed a budget for their favorite activities.
• Nearly half (48%) of individuals aged 50+ who work with a financial professional but have not discussed budgeting for their pastimes in retirement have grown more worried about their finances.

“Those approaching retirement today have no plans to slow down, and that’s what so many are overlooking in the planning process,” said John Kennedy, EVP, Chief Distribution and Brand Officer at Lincoln Financial. “We want to help the next generation of retirees ensure their pastimes last a lifetime, and this research is a clear indication that there needs to be more of an emphasis on planning to do the things that you love, especially when you finally have time for them after your working years.”

Pursuing pastimes in retirement

Pre-retirees and retirees have a desire to spend retirement pursuing their passions and pastimes like traveling, volunteering, experiencing the arts, exploring outdoor activities and socializing.

• Pre-retirees in their 50s and early 60s intend to do more planning, with 87% saying they expect to spend additional time planning for retirement.
• However, once in their retirement years, only 30% of retirees say they did enough planning for how to spend time during retirement.

“Retirement can be full of opportunities, adventures and new experiences – if the right plans are in place,” said Jimmy Reid, President of Workplace Solutions at Lincoln Financial. “Our new research shows that while many people are dreaming of what they will enjoy in retirement, they aren’t factoring the expense of their hobbies and activities into their planning. By leveraging the right advice, tools and solutions into financial planning, pre-retirees can ensure they have saved sufficient funds for what they love most in the years ahead.”

To learn more about how to take financial action today to ensure your pastimes last a lifetime, visit LincolnFinancial.com.

About Lincoln Financial Group

Lincoln Financial Group helps people to plan, protect and retire with confidence. As of Dec. 31, 2022, approximately 16 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection and retirement plan services. As of September 30, 2023, the company had $290 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

1 Source: Lincoln Financial, Consumer Sentiment Tracker, September 2023

Annuity Alliance is not affiliated with Lincoln Financial. This article is for informational and educational purposes only. It should not be used to make a buying decision. If you would like to speak with a financial professional, please use Annuity Alliance’s contact form.