Describe how economic changes have influenced retirement in the past decade. Despite these economic changes, what can people do to increase the likelihood they will be satisfied with their retirement?

Question

What will be an ideal response?

Answer 1

Economic downturns have a major disruptive effect on people's retirement decisions and plans—after declining for decades, the number of people over age 65 still in the workforce has increased significantly. As more people retire and take advantage of longer lives, significant social challenges are how to fund retiree benefits and how to view older adults who are still very active.

Many people lost much (and sometimes all) of these financial packages as the value of stocks plummeted and companies eliminated pension plans. Research indicates that most people have not saved anything close to what they will need in retirement.

Most people respond well to retirement, particularly if the retirement was by choice rather than by circumstances. Financial security, health, a strong social network, and internal motivation are all associated with reports of feeling good about retirement.

An important aspect of adjusting to retirement is to keep busy, and to replace work time with other interests. Many people opt to spend time volunteering, most likely because they have the time to devote to their community that was formerly devoted to their career pursuits. Staying healthy and active is very important for post-retirement satisfaction.