A new study from Ephraim Global reveals that an important percentage of clients between the ages of 25 to 55 (71%) are planning to work during their pension years, whether full time or part time, and mostly voluntarily, not out of financial considerations.
Out of the individuals that consider working at least part time, the majority (67%) would do so in order to remain active while 21% believe financial necessity will oblige them to do so.
These results are illustrated in an Ephraim Global survey about Personal Retirement Savings (PRS) and the investment habits of individuals born between 1960 and 1990. The survey was conducted on a sample of 900 clients worldwide that have at least one active investment account.
“The results of the survey conducted by our team of retirement research specialists tell us that individuals are adopting a radically different approach to retirement life, one that is characterized by an active lifestyle and also continued work” said Howard Dempsey, Chief Financial Officer at Ephraim Global. “What this suggests is that many younger clients would be willing to adhere to this new vision regarding retirement, and it is definitely promising to notice that such decisions are made as an individual choice rather than out of unease regarding their financial future, even though this presumes that they will have to begin saving at an earlier age”.
Other study results among the above mentioned age group have identified that the average age when individuals plan to retire is 60 and that they expect to spend on average 20 years in this phase of their life. Additionally, three-quarters of the respondents believe that tax rates will rise considerably up until the time that they expect to retire.
“In order to successfully maneuver through retirement individuals need to find an appropriate equilibrium between aspects of life such as occupation, leisure, capital preservation and expenditures. Often times we suggest to people that are nearing their expected retirement age and who are financially prepared to begin exercising some of the activities that they have planned out. Transitioning to retirement life can prove to be difficult and that is the reason why we recommend taking a practice run while still being active and having an occupation, thus pre-retirees will be psychologically prepared for the next stage of their life”.
About Ephraim Global
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
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