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Miami Herald
10-05-2025
- Business
- Miami Herald
Americans Fear Retirement Shortfall
Older Americans fear that they will not have enough money to live out their ideal retirement, according to a new survey. The survey for investment banking firm D.A. Davidson polled 1,008 U.S. adults 50 years and older between March 20 and 25 and found that 41 percent said they won't be able to support the retirement lifestyle they envisioned. Recent decades have seen a significant shift in how many Americans retire. A 2023 Pew Research Center report found that around one in five Americans aged 65 and older were still employed, nearly twice as many as 35 years ago. Data from the Bureau of Labor Statistics shows that 10 years ago, in February 2015, some 8.2 million people over 65 were employed in some capacity. This increased by 11.1 million, 35 percent, in February 2025. Saving for retirement has become more challenging for many reasons. The cost of living, including health care and housing, continues to rise, and wages have not risen consistently at the same pace. Increased life expectancy also means people need more savings. Stable pensions have largely been replaced by less reliable 401(k) plans, putting the burden of saving on individuals. Student loan debt and caregiving duties often force people to delay saving money for later life. "Once one gets to retirement age and hasn't accumulated enough retirement savings, one only has two options left-continue working or accept a lower standard of living in retirement-and neither of them are good," Robert Johnson, chairman and CEO at Economic Index Associates, told Newsweek. Over half of pre-retirees are considering taking up a side gig during retirement to bridge the financial gap. Among Americans aged 50 and older-mostly Gen Xers-who have not yet given up work, 63 percent say they have considered taking on a side hustle to raise some extra cash once they exit the workforce. Other survey results reflect the same anxiety held by Gen X, with many retired Americans grappling with the reality of post-working life and financing it, which falls short of their expectations. However, only a small portion of the population is turning to supplemental income sources. While 92 percent of retired Americans report not having a side gig, 60 percent say they wish they did. For those who have taken on part-time work in retirement, the experience appears to be positive. The study found that an impressive 93 percent of retirees with a side gig said they enjoy the work, and more than half, 55 percent, report that they pursued their side job to stay mentally or socially engaged. Financial motivations, however, play a key role. Twenty percent took on side gigs to pay down existing debt, while 17 percent said they aimed to fund a more ideal retirement lifestyle. "The definition of-and classic timeline for-retirement is changing," said Andrew Crowell, financial adviser and vice chairman of wealth management at D.A. Davidson. "While many retirees might picture never working again, a side gig in retirement can be a fun and meaningful way to stay engaged in the community while supporting a more ideal retirement overall." Setting up a side hustle in your later years can be a boon, but it's not without its hurdles, explains Zack Swad, president and wealth manager at Swad Wealth Management. "America is a land of opportunity. Unlike past generations, people today have the ability to learn virtually anything online, build side hustles, and create their own careers," he said. "But with that opportunity comes responsibility and often, a lack of structure. Without employer pensions or consistent guidance, more of the retirement burden falls squarely on individuals." Aging can also get in the way of pursuing new income avenues. "Health-their own or the health of a loved one," is a big factor in whether any sort of work is still tenable in later life, Johnson said. "People may want to continue working past retirement age but simply may not physically be able to do so." Many older Americans are considering or have already taken on side hustles or other work during their later years, and it's not without good reason. The Schroders 2024 U.S. Retirement Survey, published in December, found that Gen Xers anticipate having just shy of $603,000 in retirement savings when they stop working, but they believe they'll need just over $1,069,746 to fund an ideal retirement. Only 14 percent of Gen Xers felt that they had saved enough to live on in their later years. Another study, by Transamerica Center for Retirement Studies, found that more than half of current workers-52 percent-plan to work at least part-time in retirement. Almost seven in 10 workers-69 percent-said they could work until retirement age and still not save enough to meet their needs. "The biggest challenge facing today's pre-retirees is financial uncertainty-rising health care costs, inflation and longer life expectancies have made it harder than ever to retire comfortably," Brian Harrison, financial planner and president of SAVVI Financial, told Newsweek. "Many individuals haven't saved enough, and even those who have are struggling to manage their retirement funds efficiently." Related Articles Social Security Beneficiaries Reaches New HighDOGE Announces Deadline for Major Retirement ChangeWhat New Social Security Head Frank Bisignano Has Said About OverpaymentsSocial Security Announces Changes Coming This Summer: What To Know 2025 NEWSWEEK DIGITAL LLC.
Business Insider
07-05-2025
- Business
- Business Insider
I'm a financial advisor — here's the biggest factor that can make or break your retirement
This is an as-told-to essay based on a conversation with Andrew Crowell, the vice chairman of wealth and a financial advisor at DA Davidson. Crowell is based in Southern California and has almost 30 years of experience in the financial services industry. His words have been edited for length and clarity. Over the course of my career, I've realized that what retirement looks like today is really different from what it was when I first started. Back then, people followed the traditional path of working at a company or a couple of companies for a long period of time, retiring eventually at 65 and then spending their time traveling, playing golf, and going on vacations. As time has passed and we're living longer, people are having a much more active retirement. I have seen successful retirements and less successful ones. The successful ones are when people are planning to retire to something, an activity, a set of priorities: "I'm going to be the babysitter to my grandchildren two days a week," or "I'm going to continue with my pottery class." They have a schedule that they're looking forward to continuing on the other side of work. The unsuccessful ones often are the result of retiring from a job, but not retiring to an activity or a schedule or something of purpose. People who are retiring need to plan ahead for how they'll fill those hours in those days because it is a lot of time. Consider a retirement side hustle The definition of — and classic timeline for — retirement is changing. While many retirees might picture never working again, a side gig in retirement can be a fun and meaningful way to stay engaged in the community while supporting a more ideal retirement overall. I have four or five clients who have active retirement side gigs. One client, a freelance writer, turned her volunteer role into a paid position. Another one of my clients has always loved knitting. She's part of a group that meets monthly to knit sweaters and scarves, and she realized, "Oh, this can be an Etsy business." At the last conference I attended, both of my Uber drivers were retirees. I asked one, "Why are you doing this?" And he said, "Oh, it gets me out of the house, it's flexible hours, and I can earn a little extra income." One reason for this trend is inflation. A side hustle allows people to have another stream of income in retirement, other than just Social Security or living off their savings. But at the same time, people are living longer and searching for meaning in life, and I think that's another reason that people are looking to do something that brings fulfillment. My knitting client began knitting sweaters and scarves for those affected by the Altadena wildfires, so her side hustle brought a sense of purpose, not just cash flow. There are also health benefits to a side hustle. There have been numerous studies that show that people who are not engaged in meaningful activities cognitively in retirement suffer ill health effects because they just haven't been actively using their mind. How to get a side gig in retirement When it comes to side gigs, it's a real opportunity for advisors to help clients think a little more out of the box than they traditionally do. If you retire tomorrow, you may think, "Well, I don't really have a hobby that lends itself to an Etsy business." My freelance writer client had spent her career in PR and marketing. She had also volunteered on the board of directors of an assisted living facility. I asked her, "Are you still doing that? Do they have anybody on staff who does marketing and communications?" And she said, "Nope, I've been doing it pro bono for 10 years now." I suggested she approach them and ask to be paid part-time, and lo and behold, it turned into a couple of thousand dollars a month side gig for her. It was simply me prompting the questions of "What are you involved in?" and "Why are you involved in that?" You don't have to change anything you're doing, but your role could change from pro bono volunteer to part-time employment. A lot of exploration conversations with clients have surfaced these ideas that people weren't thinking about earlier. We have direct communication capabilities today that didn't exist 30 years ago, and those are opening up doors to possible businesses for people.
Yahoo
28-04-2025
- Business
- Yahoo
Gen X retirees have regrets over how much they saved—they're copying Gen Z and turning to side gigs
Millions of Gen X and baby-boomer retirees are panicking that their savings are not enough, with troubled Social Security, inflation, and market turbulence fuelling concerns. They're turning to side gigs like teaching, selling real estate, and Uber driving for extra income and social stimulation. Gen Xers and baby boomers have long waited for the day when they can ditch the nine-to-five work schedule altogether and enjoy their golden years in peace. However, many are waking up to a worst-case-scenario financial reality: Their savings are not cutting it. Over two in five retired Americans worry their nest egg won't fund their ideal retirement, according to a new survey from investment banking firm D.A. Davidson. That is possibly equivalent to over 20 million Americans. And whether this was caused by not saving enough, inflation, or an unexpected life event, it is a frustrating sign for families who may have spent years living paycheck to paycheck—just to experience déjà vu in retirement. The 'tides are shifting,' Andrew Crowell, vice chairman of wealth management at D.A. Davidson, told Fortune, with more retirees than ever deciding not to throw in the towel completely on work. Some 60% of retired Americans wish they had a side gig to supplement their savings. 'A side gig doesn't have to be a last resort in retirement,' Crowell said. 'It can actually be an integral part of retirement planning, supplementing savings while also encouraging engagement in the community and keeping the mind sharp.' Retirement can be a time of mixed emotions. Some retirees may be eager to relax with their grandchildren or finally find time to travel internationally, whereas others may not know how to function without the rhythm of their nine-to-five. It's why, as life expectancy increases, people are not only working longer in their primary careers, but also making the pursuit of part-time second careers a norm. 'Unlike past generations, current retirees are staying active longer in retirement and living longer, which increases the amount of money they need throughout retirement,' said Patrick Doherty, senior vice president at Wealth Enhancement. 'Generally, we see clients spending similarly in retirement as they did while they were working.' Doherty told Fortune he has increasingly seen retirees take on side gigs alongside their retirement like being a substitute teacher, selling real estate, or serving on the board of a business. However, it's not always for the money. More than half, or 55%, of retirees with a side gig report doing it for mental or social benefits, according to the D.A. Davidson survey. Just 20% cite paying off existing debts as a motivator, and 17% said it's to financially support their more ideal retirement lifestyle. Retirees are not alone in their affinity for a side career. Gen Zers and millennials, too, are embracing the gig lifestyle. In fact, one survey found that nearly two-thirds of young people aged 18 to 35 have either started a side gig or plan to use one for supplemental income. Interestingly, their reason for doing so isn't necessarily just for the money—but because they'd mostly rather be their own boss and follow their passions. And it makes sense considering how easy it is to start a side gig with the aid of technology. For example, many young people can earn extra dollars just by streaming video games on YouTube, dancing on TikTok, or selling products on Etsy. For young people who play the side-gig game right—and save more than they spend—it can lead to a situation where retiring earlier, and in financial comfort, is possible. 'There is an old saying that says, pay ourselves first,' Doherty said. 'If you contribute to your 401(k) and stock money away in brokerage accounts on a systematic basis before discretionary spending starts, you will find it easier to save.' This story was originally featured on Sign in to access your portfolio
