New comprehensive survey data shows retirees balancing joy, well-being and economic concern.
Many American retirees are enjoying their life after leaving the workforce, despite the financial and health challenges that they are experiencing.
According to Retirement Realities: The Experience of Retirees, part of the 25th Annual Transamerica Retirement Survey, a significant share of retirees report improvements in how they feel about their lives since retiring. More than four in 10 say their enjoyment of life has increased, and a similar proportion report higher levels of happiness.
“Retirement is a major life change. It brings freedom and time for personal pursuits and, unfortunately, it also comes with aging-related health issues and financial constraints,” says Catherine Collinson, CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies.
Positive emotions dominate how retirees describe this stage of life and the vast majority associate retirement with freedom and enjoyment while many say they are prioritizing experiences over material goals. Seven in 10 retirees list enjoying life as a top priority, while roughly two thirds say staying healthy and physically fit is central to their retirement years.
Many retirees report spending more time with family and friends, traveling more frequently and engaging in hobbies they postponed during their working years. Those lifestyle gains, however, often coexist with financial and physical setbacks. About one third say their overall health has declined since retiring, and more than one-quarter report a deterioration in their financial situation.
Income and savings levels highlight why confidence remains fragile for many retirees. Social Security serves as the primary income source for more than half of retirees, supplemented by savings, pensions and, in some cases, part-time work. Median household income in retirement is modest, and savings vary widely. While some retirees report substantial nest eggs, others have little or no savings beyond home equity.
Only about one in four retirees say they are very confident they will be able to maintain a comfortable lifestyle throughout retirement. Most express only moderate or limited confidence, reflecting concerns about inflation, unexpected expenses and market volatility.
Three quarters of survey respondents say they are concerned about their health as they age, and many are uncertain how they would pay for long-term care if it becomes necessary. Nearly half expect they would rely on family or friends for care, while fewer anticipate being able to afford professional in-home care or assisted living.
Looking back, a strong majority of retirees say they regret not saving more consistently while they were working, and many point to the value of financial education and planning earlier in life.
“Retirees have a wealth of life experience, perspectives, and lessons learned that can help younger generations as they save, invest, and plan for retirement,” Collinson notes.
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