[Trending News] Retirement Revolution: Millennials ditch old-school relaxation for adventure-fuelled futures Singapore News

By traditional standards, millennials are thriving financially. However, their approach to retirement is anything but conventional. While building wealth remains a priority, the dream of a classic, sedentary retirement is increasingly being replaced with a focus on living in the present and pursuing flexibility.

Retirement: A less prioritized goal

A recent article from CNBC showed how retirement, once the ultimate goal for many workers, is no longer the number one ambition for millennials. Michael Liersch, head of advice and planning at Wells Fargo, notes a shift in priorities. “Ten or 15 years ago, that was always the number one goal,” he explains. “Now, living in the moment has become a bigger priority.”

Research backs up this change. A 2024 report from Edelman Financial Engines reveals that 37% of Americans envision a retirement that looks vastly different from previous generations. Rather than dreaming of long hours spent in relaxation, millennials are more inclined towards an active and adventurous lifestyle. Thirty-two per cent of millennials say they will never fully retire, suggesting that their retirement will be less about sitting back and more about staying engaged.

Financial growth amid changing priorities

While millennials may be rethinking what retirement looks like, their financial success is undeniable. According to the St. Louis Federal Reserve, the median wealth of younger millennials and older Gen Zers, born in the 1990s, has skyrocketed in recent years, more than quadrupling in recent years. Additionally, millennials with seven-figure retirement balances have increased by 400% as of the third quarter of 2024, according to Fidelity Investments.

However, the wealth that millennials are building is often tied to the present—housing down payments, medical expenses, student loans, and more. “There are a lot of financial priorities that we are all trying to reach simultaneously,” says Sophia Bera Daigle, a financial planner for millennials. These competing financial responsibilities are reshaping how millennials view their future retirement.

Flexibility over traditional retirement

For many millennials, the idea of a traditional retirement—one focused on leisure and relaxation—has evolved into a desire for greater work flexibility. Brett House, an economics professor at Columbia Business School, points out that millennials’ financial stability is largely determined by their ability to balance immediate needs with long-term savings goals. In a world without traditional pensions, personal savings and Social Security will play a larger role in funding retirement.

Sophia Bera Daigle underscores this shift, stating, “When I got into this business, retirement was about quitting the grind… playing golf.” Today, retirement is about flexibility and the freedom to choose the type of work that excites them in their later years. The focus is on finding a balance rather than relying on the outdated notion of retirement as an endpoint.

In the years to come, millennials may continue to shape retirement into something far different from the quiet, traditional image many of us once imagined.