Insights from MIT AgeLab and MassMutual Strategic Distributors
A conversation with Caryl Falvey, head of annuity marketing at MassMutual Strategic Distributors
Q: MMSD is collaborating with MIT AgeLab on a project to understand how people view and describe life after work. Tell us about the research and the goal you hope to achieve with this work.
A: The research explores the evolving concept of retirement in the context of increased life expectancy and changing societal norms. Advances in science, technology, medicine, and public health have significantly extended the average lifespan, resulting in people spending more years in what has traditionally been considered their retirement period. U.S. Centers for Disease Control estimates that a 65-year-old man can expect to live an additional 17.5 years, and a 65-year-old woman 20.2 years. [1]
We are calling the project “Words Matter.”
Our goal is to use the research to help advisors have better conversations with their clients, so that they can, in turn, build a better plan for their clients to live a longer and more fulfilling life.
Q: When do most people retire?
A: With more people living longer, the idea of retirement is shifting. Retirement is no longer seen as a singular moment but rather a process that varies in timing and duration. Some people may choose to "un-retire" and re-enter the workforce, while others may never plan to retire at all. [2] This longer phase of life after a career is unique and evokes a range of emotions and thoughts.
It is important that advisors understand people's expectations and goals for this retirement phase.
Q: You conducted an online survey conducted with a national U.S. sample between February and May 2024, with 1,303 participants aged 18 and older. Please share the question and the results.
A: The survey asked participants to list five words that come to mind when they think about life upon completion of their career, without using the word "retirement" to avoid cultural biases.
The results revealed that people tend to converge around a relatively small number of words to describe their life after a career. The top 10 most frequently used words accounted for about a third of all word responses, and the 28 most frequently used words accounted for about 50% of all responses. The top words were generally positive, indicating that people have optimistic views of this phase of life. The top 10 words could be grouped into three categories: positive realizations (e.g., relax, happy, fun), relationships (e.g., family), and money.
We learned that there are distinctive patterns in vocabulary around life after a career by age and gender. For example, younger people were more likely to use words related to work and the workforce, while older people focused more on words associated with personal relationships and social connections. The vocabulary of retirement changes with age, reflecting current concerns and wishes. Financial professionals can use these insights to tailor their communication and planning strategies to different age groups and genders. We built a wordwheel, linked here, to help financial with these discussions.
The vocabulary of retirement is not an endpoint but a starting point for conversations.
Q: So how can financial professionals can use the words from the study as a basis for discussions with clients about their priorities and aspirations for later life?
A: Clients want to know if their financial professional “Gets them.” This means clients expect holistic conversations or longevity discussions — beyond stocks, bonds, mutual funds and annuities. They want to discuss mental health, social connection, physical health and well-being. Those discussions need to be tailored by gender and age. By understanding the vocabulary people use to describe life after a career, financial professionals can better support their clients in planning for a fulfilling and enjoyable retirement.
References
[1] Kochanek, K.D., Murphy, S.L., Xu, J.Q., & Arias, E. 2024. Mortality in the United States, 2022. NCHS Data Brief, no 492. Hyattsville, MD: National Center for Health Statistics. Accessed July 2024 at https://dx.doi.org/10.
[2] Life After Career: The Vocabulary of Retirement
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