Few in ‘Active Generation’ of Americans Have Planned for Their Retirement Pastimes 

Among Americans in their 50s and 60s, 77% view retirement as a phase in life when they can finally pursue passions and pastimes neglected during their working years. However, only 11% of pre-retirees claim to have extensively planned for their post-retirement leisure activities, according to Lincoln Financial’s Consumer Sentiment Tracker, released Tuesday. 

The study indicated that 87% of individuals in their 50s and 60s who engage with financial professionals have discussed an investment strategy for retirement. Yet significantly fewer individuals (53%) have delved into budgeting for their preferred activities, perhaps because nearly half of respondents did not discuss budgeting for retirement pastimes expressed heightened financial concerns. 

“As an adviser or plan sponsor, providing more effective tools and technology is key—but what this research shows us, above all, is that taking a human-first approach when talking to employees about their retirement goals is critical,” says Ralph Ferraro, president of retirement plan services at Lincoln Financial Group. 

According to Lincoln’s study, pre-retirees and retirees want to spend retirement pursuing passions like travel, volunteering, experiencing the arts, exploring outdoor activities and socializing. While most pre-retirees in their 50s and early 60s expect to devote more time to retirement planning (87%), only 30% of retirees believe their preparation years earlier adequately planned for their post-retirement activities. 

“The upcoming group of retirees is the most active generation of 50+ yet: They have places they want to go, family and friends they want to spend time with and pastimes they want to continue exploring,” says Ferraro. “Retirement planning shouldn’t just be personalized; it’s personal.” 

He recommends that participant educators and advisers start the “action plan” conversation by asking thought-provoking questions. 

“Encourage employees to dive deep into the specifics of what they want to do in retirement,” he says. “Challenge them to think about the things that bring them mental and physical wellness and how that translates to their financial wellness. That is how we help people find clarity and gain the confidence they need to make decisions now and through retirement.” 

The inability to properly prepare for retirement can also be seen in Bank of America’s 13th annual “Workplace Benefits Report,” which found employees are prioritizing short-term financial needs rather than retirement savings. The study, released in September 2023, revealed a decline in the number of employees prioritizing long-term retirement savings, dropping to 31% in 2023 from 45% in 2022.  

This shift was accompanied by a rise in short-term financial needs, with 16% reporting a need to pay off credit card debt (compared with 11% in 2022), and 13% reporting a need to save for unexpected expenses (up from 8% in 2022).