A new survey shows one in five investors expect to retire earlier than they had planned before the COVID-19 pandemic, according to the Money Management Institute (MMI) and Aon plc. The 2022 Advisory Solutions: Expectations and Experiences report, the first study in a three-part series, examines how the COVID-19 pandemic impacted investors’ retirement expectations. It shows the trend is driven by investors who are younger than 35 years old, 45 percent of whom expect to retire earlier. Of those younger investors who expect to leave the workforce early, 65 percent plan to retire by age 55.

"This research highlights the critical role advisors play in helping close gaps between clients’ life goals and the practical steps they are taking to accomplish those dreams."

Craig Pfeiffer, MMI President and CEO

The findings also illustrate that planning gaps are different for different generations of clients, which has significant implications for how wealth managers and advisors approach and structure their planning process by age cohort.

“Younger investors often have unrealistic return expectations, which means that financial planning must be an educational process with data and insights – and can sometimes require delivering difficult messages,” said Peter Keuls, Global Head of Wealth Management at Aon. “Rather than discounting younger investors’ ambitious life goals, advisors should engage these clients on the investing and lifestyle changes required to accomplish them in an iterative planning process that helps clients make better decisions.”

The first report found that:

• Many investors benefited financially during the pandemic, with 24 percent of investors stating that they increased their expected retirement budgets after the pandemic. That number rose to 54 percent among investors under 35 years old and 47 percent for crypto investors.
• Many investors benefited financially during the pandemic, with 24 percent of investors stating that they increased their expected retirement budgets after the pandemic. That number rose to 54 percent among investors under 35 years old and 47 percent for crypto investors.
• Many investors benefited financially during the pandemic, with 24 percent of investors stating that they increased their expected retirement budgets after the pandemic. That number rose to 54 percent among investors under 35 years old and 47 percent for crypto investors.
• Many investors benefited financially during the pandemic, with 24 percent of investors stating that they increased their expected retirement budgets after the pandemic. That number rose to 54 percent among investors under 35 years old and 47 percent for crypto investors.

"This research highlights the critical role advisors play in helping close gaps between clients’ life goals and the practical steps they are taking to accomplish those dreams."

Craig Pfeiffer, MMI President and CEO