How Millennials Want To Spend Their Retirements — and How They Can Make It Happen
Written by
Kerra Bolton
Edited by
Zuri Anderson
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Millennials are reimagining retirement on their terms — less about spending their golden years winding down and more about living meaningfully.
However, getting the retirement they want requires intention, creativity, discipline, and flexibility.
Here are ways millennials want to spend their retirements and how they can make it happen.
Retiring Early
Many millennials are challenging the traditional retirement age of 60 to 65 by retiring earlier and being open to traveling or becoming digital nomads.
“The appeal of retiring younger and then being able to physically enjoy your retirement is their motivation,” said Drew Boyer, certified financial planner (CFP) and founder of Boyer Financial Group. “Most millennials realize that ‘no one is coming to save you’ as pensions and defined benefits go extinct and Social Security is just a promise people hope will pay them.
“If these programs may pay a person at 62, why wait on the system? Create your own.”
As a result, Boyer said millennials are focusing on saving early, saving often, becoming more comfortable with higher risk versus return, and keeping their eye on long-term investment returns, not short-term moves.
Creative Retirement
Many millennials are rejecting the idea of full-time retirement in favor of spending their older years blending passion projects, part-time work and extended travel.
“This approach offers flexibility, purpose and financial security while allowing them to explore interests without the pressure of a traditional 9-to-5,” said Christopher Stroup, founder and president of Silicon Beach Financial. “It aligns with their desire for autonomy, experiences over possessions, and ongoing personal growth.”
Millennials can reach their goal of having a creative retirement by building a diversified portfolio that includes taxable brokerage accounts, Roth IRAs and passive income streams.
“Unlike 401(k)s with age restrictions, these allow early access to funds without penalties,” Stroup said. “Millennials should also focus on high savings rates, strategic tax planning and flexible income sources like real estate or online businesses to sustain a non-traditional retirement.”
Giving Back to the Community
Philanthropy and charitable giving are important to millennials.
According to a survey by Define Financial, a San Diego-based financial planning firm, 84% of millennials give to charity and nonprofits, averaging about $481 annually.
“They tend to share their wealth and place it into organizations and individuals that can help reshape the world into a more idealistic place,” said Daniel Gleich, CEO and president of Madison Trust Company. “Having lived through recessions and country-shattering events such as 9/11, millennials tend to have their eye on the significance of community.”
Millennials can continue charitable giving during their retirement by investing their money in an asset that accrues passive income.
“For instance, alternative assets like precious metals have generally stood the test of time, historically demonstrating a value that withstands the volatility of the stock market,” Gleich said. “In conjunction, other tangible assets like real estate are unlikely to ever lose value entirely since they’re physical possessions.”
Spending More Time With Family
According to a Wealth Enhancement survey, nearly two-thirds (64%) of millennials rated spending more time with their family as their top priority during retirement.
Prioritizing family time in retirement often means staying physically and financially close — whether it’s relocating near loved ones, budgeting for frequent visits or creating a lifestyle that allows for caregiving, connection and shared experiences.
Sara Levy-Lambert, an expert in real estate, finance and operations, said many millennials experience the tension between needing to spend money for immediate financial obligations and saving for retirement.
“This dynamic often leaves millennials delaying on investing early enough to actually take full advantage of compound interest,” Levy-Lambert said. “I’ve observed a number of professionals wrestle with this balancing act.”
Instead, Levy-Lambert said millennials can take advantage of micro-investing platforms that automatically round up everyday purchases to the next dollar amount and invest the spare change.
“It essentially accumulates a retirement fund from very little, daily work,” she added. “It is very appealing to millennials because the barrier to entry is low, and it can turn everyday purchases into a way to build wealth over time.”
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