New retirement trend

 In a previous post I referred to the fact that in the United States most people aspire to retire at age 62, but they actually partially retire at age 65 and fully retire about 70. This trend has been slowed down by the Pandemic as another trend that’s emerging is that people retire while they still have their health at the expense of their lifestyles and future security.

The last two years have put people in a new mindset for what they want for their future. Many people who were 10-plus years away from a traditional age 65 retirement are now looking at how they can phase-out of the workforce with a longer runway. That means looking at their needs and wants and deciding to scale back to 80% to 90% as early as their mid-50s. This trend may continue as people place value on being able to enjoy their life now while their health is good and they are financially able, as opposed to waiting until later when there might be a lot more unknowns — health being the biggest unknown for many people and remember in the United States one of the biggest causes of personal bankruptcy in medical issues, and unless they change their health care funding model that will not change soon.

Young people who grew up in the age of rideshare drivers and Etsy stores will carry the mindset of side-hustle culture for the rest of their lives into retirement and that mindset is brand new in American history.

Past generations have always been either working or retired, with no middle ground. Future generations will have a spectrum to choose from. For example, if someone decides they want more time, then options like gig work, consulting and more will mean their lifestyle can scale as they see fit.