65: A speed limit, not a milepost

Increased longevity and the Great Recession are making Baby Boomers reassess the normal retirement age

February 20, 2012 6:01 am ET

Retirement used to mean turning 65 and collecting a gold watch from your lifelong employer. Well the watch has been replaced by the digital clock on your iPhone. You've done essentially the same job but worked for five different employers during your career. And, 65 is no longer marks the exit ramp on your road to retirement

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In fact, just 14% of respondents age 50 or older in a new Merrill Lynch survey cited "hitting a certain age" as a key factor that would lead them to retire. Instead, feeling confident that they had sufficient assets to afford them the lifestyle they want would more likely influence their decision to retire. That was just one of the fascinating results in a sneak preview of the Merrill Lynch Affluent Investors Survey that will be released Wednesday.

Expecting to live considerably longer than their grandparents' generation, affluent Americans saving for retirement find themselves in unchartered territory. Many are uncertain about how to adequately save for retirement and how to turn assets into sustainable income once retired. Market volatility and depressed home prices add to the uncertainty of when is the right time--or age--to retire.

"Helping individuals and families optimize their financial resources and quality of life during retirement is not a math problem solved soley with a calculator or single product," said David Tyrie, head of Personal Wealth & Retirement for Bank of America Merrill Lynch.

Tyrie predicts that financial advisers who focus on helping clients grapple with the broader challenges of retirement, from choosing appropriate investments and income products to picking the right medigap or long-term care policy, will come into their own over the next decade or two. "Advisers are going to play a different role," he predicts. "They are entrepreneurs and they are going to build their businesses around clients' evolving needs."