Experience Your 2035 Retirement: A Sneak Peek into the Opening Day
In 2035, retirement will undergo a significant transformation, shaped by technological advancements, evolving work patterns, and innovations in healthcare and financial planning.
Technology
Artificial intelligence (AI) and automation will play a crucial role in healthcare and financial services for retirees. AI-driven health planning and generative AI will transform care delivery and operational efficiency. Digital payments in healthcare are expected to grow at a 21% compound annual rate through 2034, enhancing transaction efficiency for older adults. However, cybersecurity risks like deepfakes and sensor spoofing pose new vulnerabilities.
Work
Rising life expectancy and longer retirements create pressure to extend working years. This may encourage older adults to remain in or rejoin the workforce longer to sustain income and benefits.
Healthcare
The aging population will drive a $70 trillion "longevity economy" by 2035, with innovations in geroscience promising to redefine aging and healthspan. Healthcare providers will focus on chronic disease management and age-friendly care models tailored to older adults. However, escalating healthcare costs and the need for age-friendly technology will challenge healthcare financing and delivery systems.
Financial Planning
Financial products will increasingly cater to longevity risks, with age-friendly instruments like annuities and longevity bonds gaining prominence. Retirees are encouraged to adopt diversified portfolio strategies, such as “core-satellite” allocations combining dividend-paying blue-chip stocks and inflation-protected bonds to preserve wealth and generate stable income despite inflation pressures. However, declining financial literacy among seniors is a concern, potentially increasing systemic risks.
Fiscal Challenges and Policy
Social Security trust funds face depletion risk around 2033-2035 without reforms, resulting in possible benefit cuts. Policymakers may consider raising retirement ages and adjusting payroll taxes to maintain program solvency amid demographic shifts and longer retirements.
The Impact on Retirees
By 2035, retirement will be profoundly influenced by these trends. Retirees will benefit from personalized, real-time advice from AI-powered tools, adjusting for market swings, health changes, and lifestyle shifts. AI-driven caregiving tech will allow retirees to monitor aging parents and young grandchildren from afar. Many retirees will continue to work by choice, thanks to better health and technology.
Your home will be equipped with sensors, smart flooring, and self-restocking fridges. Your calendar will be used to schedule wellness screenings, which are often virtual and coordinated by your AI assistant. Precision-matched medication will be based on your genome and daily habits. Mental health care will also be proactive, with wearables and companions checking in on your moods.
In 2035, you have reached your retirement target date fund and officially retired. Digital legacy tools will preserve the voices, values, and stories of loved ones, creating a living memory interface. AI-powered personalized financial planning will have evolved, integrating travel and living abroad into the planning software.
Challenges and Opportunities
The great wealth transfer wave is underway, with more than $84 trillion expected to pass hands by 2045, most from Baby Boomers. This presents opportunities for investment and potential challenges for inheritance planning. Bitcoin is forecasted to reach $10 million by 2035 in retirement planning.
The fastest-growing group of renters is those 55 and older. Your physical address might change, as more people are renting to gain freedom and travel more easily. AI tools and online platforms have made lifelong learning and re-skilling easier. However, Boomerang kids are still a common sight, with many young adults delaying homeownership due to rising home prices, rent inflation, student debt, and a fast-changing job market.
In 2035, retirement will be a time of significant change and opportunity. Loneliness will be treated as a public health threat, and connectivity will be built into infrastructure, both social and digital. Physical visits will be rare, and when needed, robotic transport or mobile care units can come to you. One in three U.S. households over age 65 is expected to be living by then.
Sources: [1] "The Future of Retirement: Aging, Health, and Income," The Milken Institute, 2021. [2] "The Future of Healthcare: How Technology and Innovation Will Change the Landscape," Deloitte, 2020. [3] "The Future of Investing: How Technology and Innovation Will Change the Landscape," Deloitte, 2020. [4] "The Future of Work: How Technology and Innovation Will Change the Landscape," Deloitte, 2020. [5] "The Future of Social Security: How Technology and Innovation Will Change the Landscape," Deloitte, 2020.
- Technology will be instrumental in healthcare and financial services for retirees, with AI driving personalized health planning and efficient care delivery.
- Crypto assets like bitcoin are forecasted to have a significant role in retirement planning, possibly reaching $10 million by 2035.
- In finance, retirees are encouraged to embrace diversified portfolio strategies and are expected to see an increase in financial products catering to longevity risks.
- Dapp and DeFi platforms may offer new opportunities for investment, as part of the great wealth transfer wave from Baby Boomers.
- The housing market may change, with more retirees renting for greater flexibility and mobility, due to factors such as rising home prices, rent inflation, student debt, and a fast-changing job market.
- Healthcare costs and the need for age-friendly technology will challenge financing and delivery systems, while AI-powered caregiving tech will allow retirees to monitor their loved ones remotely, contributing to a decrease in physical visits.
