Amid the coronavirus outbreak, many people are calculating what the global pandemic may mean for their retirement plans and finances.
However, even prior to the outbreak, retirement had started to look different in the American workforce.
With the average lifespans longer than they were in previous generations, it has changed the way Americans think about retirement. It's not uncommon for people to have retirements that last two or more decades, which can be a daunting task to save for.
"The big risk is outliving your money," Keith Bernhardt, vice president of retirement income for Fidelity Investments, told U.S. News and World Report.
A recent report from GOBankingRates found that having a comfortable 20-year retirement in Georgia costs more than $1 million or roughly $56,000 annually.
The high costs of a longer retirement, paired with longer life expediencies for U.S. adults means that more people are opting to stay in the workforce longer.
Last year, a survey, based on responses from 2,000 adults, found that the majority of Americans now plan to work beyond a traditional retirement age, and one in three respondents said they plan to work at least a part-time job in retirement.
However, baby boomers staying in the workforce longer may mean that younger generations may have fewer opportunities to climb the ladder and acquire the financial gains that tend to come with that.
About 15% of baby boomers, ages 54-74, still work full time, while they are joined in the workforce by the three generations that succeed them: Gen X, millennials and Gen Z, according to USA Today.
"This is the first time ever that five different generations are in America's workforce at the same time, from Gen Zers up to baby boomers. It's no surprise that there are some growing pains," LinkedIn career expert Blair Decembrele told the newspaper.
According to the report, not retiring has more to do with financial concerns — although that is certainly part of it. Lifespans have gotten longer, which means it costs more to be retired.
But the unretired trend also has to do with a sense of purpose, preventing boredom and avoiding depression.
Among those surveyed who had retired, about 30% said they felt like they lost their identity after they were done working.
"The concept of retirement is evolving," Russell said. "It's not just about finances. The value of work is also driving folks to continue working past retirement."
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