Abstract
With the aging of a significant portion of the global population, and many people living and working longer, issuing pertaining to longevity, funding for later years, and discussions of life priorities in the next phase of their lives are coming to the fore. In a series of national thought leadership studies, Bank of America Merrill Lynch and Age Wave conducted research to examine how Americans are preparing for retirement and reshaping their lifestyles during their later years.
Traditional dreams of retirement – a life of leisure and a home in the desert – are rapidly changing as a growing majority of older adults seeks lifelong work, learning, challenge and contribution. The changing culture of aging is generating exciting possibilities for individuals and opportunities for businesses and investors in the massive, growing and global longevity economy.
One of the most important underlying conclusions we found is that today’s ‘retirees’ are not simply retiring- they are exploring new options, pursuing old dreams, and living life to the fullest. They are taking advantage of longer life spans to devote energy to pursuits they may not have had the time or freedom to chase during the ‘career’ portion of their lives. They are staying active, engaging in new pastimes, and strengthening and expanding their social networks.
A new era of volunteerism, philanthropy and purposeful engagement is evolving. The emerging cohort of older adults is painting a very different picture of retirement than the tired visions of an earlier generation. How will the redefinition of retirement change our lives, communities and institutions? Every one of us and our families will be affected.
At a macro-economic level there is a revolution brewing as well. The longevity economy is becoming an increasingly powerful force, and the spending power of 60+ consumers is expected to reach US$15tn by 2020E. The US longevity sector alone is currently estimated at US$7.1tn, making it the world’s #3 economy. This section of the economy is expected to account for over 50% of US and Japanese GDP by the 2030s. The longevity economy is becoming an increasingly powerful force – encompassing both the economic activity serving the needs and wants of the 50+ global population, as well as directly purchased products and services, and the knock-on economic activity that this generates.
Join these thought leaders for a stimulating conversation about our future as families, communities and economies.