Americans are living longer, which means traditional views on retirement must change, said Ken Dichtwald, president of Age Wave.
Dichtwald is a psychologist, gerontologist, and author of 19 books. He discussed how America’s demographic changes are impacting the meaning of aging in a session at the Lifetime Income Alliance Summit.
Humans have been trying to find ways to live longer, healthier lives for centuries, starting with the search for the mythical Fountain of Youth, he said. But it was 20th century public health advances such as sanitation, antibiotics, and vaccines that led to the rise in life expectancy. Lifestyle interventions, cracking the genetic code, and the development of more prescription drugs have further increased life expectancy.
But extending lifespans also has a downside, Dichtwald said.
“Until recently, people weren’t worried about running out of money in retirement,” he says. “Life in our public environments is geared towards young people.”
The financial services industry has primarily focused on accumulation. “That’s fine, but that’s not the point,” he said. “Because the next stage of life lies beyond the accumulation.”
Dichtwald called on the industry to come up with simple names for retirement products, names that older Americans can easily understand.
“A completely new era”
“Your customers are living in a whole new era,” he said. “Two-thirds of people who have lived past the age of 65 in the history of the world are still alive today, but most of them are clueless about what they should do with their lives,” he said. , pointed to a study showing the average retiree watched 47 hours of TV in 2023.
“We’re not going to be 50, 60, 74 years old like our grandparents,” he says. “We have new dreams, new hopes, new arrangements and new role models.”
Dichtwald described the increased life expectancy as a “longevity bonus.”
“If you found out you were going to outlive your parents, where would you put your longevity bonus? Most people think that they would be done with it early in life and just spend the rest of their time at leisure. Part of the problem is that people want to stay young, they want to live out their middle years, they want to reinvent themselves in retirement. How can we help them rethink and reinvent themselves? Is retirement really a good idea?”
Retirement period tripled
Dichtwald said the average length of retirement has nearly tripled since 1935, from seven years to 20 years. “Is that a good idea? Who can afford that?”
Dichtwald said the U.S. needs workers over 60 because there are fewer young workers to replace those who reach retirement age. “Last year, for the first time in America, there were more workers providing care for the elderly than providing child care. Still, child care receives attention. Companies due to lack of attention later in life The cost is exorbitant.”
Retirement no longer means the end of a job, he said. Retirement is now a new freedom, the beginning of a new chapter in life.
“Most people enter retirement relatively ignorant about what they do, how they spend their time, and who they are. There are people, but no one has ever imposed anything on them.”
Dichtwald proposed creating a seniors corps similar to the Peace Corps where seniors could volunteer, contribute and lead “to do something good for other people.”
Pursuit of work-life balance
According to research from Age Wave, most older Americans seek work-life balance.
The financial services industry is often focused on helping customers accumulate wealth. But Dichtwald said Age Wave’s research showed people wanted financial security more than wealth.
“I think you’re doing a life-saving job,” Dichtwald said. “By helping people access the economic resources that will last them a lifetime, you save lives. There may be no more prestigious profession today.”
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