80 is the new 60

As investors are living longer, their attitudes about aging have changed. Most investors do not feel “old” until they are in their 80s, finds a UBS Investor Watch survey. In prior generations, investors believed on average that their parents were old at 62, the age when people typically retired.

It’s not just attitudes about age that are shifting. The survey finds that expectations for retirement have evolved. For instance, many investors anticipate a gradual transition to full retirement, rather than an abrupt departure from the working world. Once retired, nearly 70% of investors foresee an extended period dedicated to travel and other leisure activities. And nearly all expect a third stage where health and mobility concerns could limit their activities, a period that may last a decade or more.

Despite adapting expectations, UBS finds that investors consistently underestimate the income needs for each phase of retirement. An income shortfall takes on greater urgency given the timeline of modern retirement—up to 30 years for many.

Key takeaways

  • Most investors project that they’ll need 60% income replacement in retirement, though the industry rule of thumb is 78%.
  • Though they plan for lower expenses, only 33% of investors expect to downsize homes when they retire.
  • 61% of pre-retirement investors have an aging parent or young adult children, and many have the added burden of helping these other generations make key financial decisions.
  • Will you have enough for the retirement you want? Talk to your UBS Financial Advisor

As you consider your own retirement, these insights could help you implement a financial plan that anticipates changing income needs across each stage, among other nuances of the modern era.

Are you prepared for the changes—and challenges—of modern retirement? Together we can find an answer. Connect with your UBS Financial Advisor or find one.

UBS Investor Watch is a quarterly survey that tracks and analyzes investor sentiment. For this edition, UBS surveyed 2,319 U.S. investors with at least $250,000 in investable assets, at least half of whom had $1 million or more. For complete results, download the full report (PDF, 580 KB). Then talk to your Financial Advisor to see how these insights can help you tailor your financial plan to accommodate the realities of retirement today.