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  • Writer's pictureAdam Tafoya


The retirement scene has been changing quite a bit for Americans, due to the several advancements in technology and science, along with political and economic factors that influence retirement’s dynamics.

Retirement today (and in the future especially) is very different from the one that previous generations experienced. Retirement planning has become a fundamental step for assuring the retirement you want. It is important to be aware of these trends, in order to make the most informed financial decisions.

Trend #1: Pensions are disappearing

Pensions as we know them are not a reality anymore. These plans, which provide retirees with lifetime benefits, are becoming rarer and rarer, mostly due to their high cost. It is reported that 30% of people born from 1940-1950 are covered by a pension, but only 11% of people born in the 1980s will be. The private sector has shifted from pensions to less costly plans, like the 401(k). These plans let workers set aside part of their pay in tax-deferred accounts, with the employer often matching their contributions. It is important to have a good understanding of employer-sponsored retirement plans, to know how to contribute to them wisely and to be aware of the taxation they are subject to, in order to secure enough funds for your retirement years.

Trend #2: Social Security’s Uncertainty

Many Americans rely on Social Security as a form of guaranteed income in their retirement. However, Social Security’s future is uncertain. In fact, 2034 will be pivotal year for Social Security; in that year, its trust fund will be depleted, and it will only cover 79% of its benefits. The Social Security reform has been a hot topic in the political arena for several years, and it concerns a big percentage of Americans; the Transamerica Center for Retirement Studies' 2016 survey of workers reports that 77% of employees are concerned that Social Security will not be available to them when they retire. It is important to take into consideration such uncertainty when planning for retirement, and to follow the Social Security Reform debate closely, in order to make the most appropriate financial choices for your retirement plan.

Trend #3: Better Health, Longer Lives, Longer Careers

Scientific advancements have increased the quality of life for all members of society; people benefit from better health, which allows them to live longer and, consequently, to work longer. Technological advancements have contributed in bettering workplace conditions, with jobs becoming less physically demanding. Moreover, Social Security and Pension reforms acted as incentives for people to be part of the workforce longer, since they made working later in life financially appealing. The Bureau of Labor Statistics data from 2014 reports that, over the past 20 years, the percentage of people 65 and older who work has grown 117%- and the trend seems only to continue.

When facing important decisions like retirement planning, there are many variables and factors to take into consideration. At Educated Wallet, we provide you with the tools for achieving the peace of mind and confidence you want when planning for your retirement.

At Educated Wallet, we offer online courses that provide you with the knowledge and tools needed for building a personalized financial strategy. Money Guide for Millennials is a course built and dedicated specifically to Millennials, to guide them through the financial strategies that will efficiently help them in their planning. For more information, visit


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