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What Boomers Can Teach Future Retirees
Both Gen X and the advisors serving them can learn a lot about retirement from the’ 60s generation.
By Robert Laura
AN INTERESTING TREND IS HAPPENING: Financial planners are starting to see more Gen X prospects, not just baby boomers. In general, you wouldn’ t think the planning for one would be much different from that of the other. But there are key differences between these two cohorts.
The baby boomers blazed many new and fresh trails. They were a generation of“ firsts” with a laundry list of accomplishments. They were the first generation to grow up with television and rock’ n’ roll music. They influenced the country’ s attitudes about drugs and sexual freedom and were actively involved in the civil rights movement, fighting for equality and justice.
They were also the first generation to enter retirement with little or no pension and— unlike their parents— were the first group to openly discuss their thoughts and feelings about retirement and the challenges it can bring.
Changing the world isn’ t easy, of course. As any pioneer or innovator will tell you, stepping outside the bounds of tradition means you’ re going to take wrong steps and learn lessons the hard way— mistakes that weren’ t necessarily fun at the time, but which might offer lessons for those who follow. That means boomers have things to teach succeeding generations and advisors about what they got wrong. And right.
I’ ve been guiding boomers for 25 years, studying the psychology of retirement, and I’ ve identified a few of the big retirement challenges that boomers commonly face. Advisors can raise these issues with their younger clients to better educate, prepare and transition Gens X, Y, Z … and those who come after.
The Extended Finish Line
Many boomers pondering retirement were so focused on hitting a magical age and dollar amount that they missed a bigger question:“ What comes next?” They saw the retirement date as the ideal finish line, only to realize it was just the beginning of another 30- to 40-year marathon. They should actually have been asking“ What’ s next?” well before they finished working.
I didn’ t realize the significance of this until a couple of years ago, when I completed some research for the Retirement Coaches Association. We polled over 1,000 current and future retirees and found that 78 % of respondents had seen someone struggle with the transition. I simply assumed it would take new retirees three to six months to find a new routine, purpose and direction in life. But half of the respondents said it took a year to adjust. It turns out that it’ s a much bigger and more complex task than we all assumed.
That means advisors need to put the“ What’ s next?” question
46 | FINANCIAL ADVISOR MAGAZINE | MAY 2025 WWW. FA-MAG. COM