As the pandemic fades further into the rearview mirror, retirees are enjoying retirement with well-defined priorities and spending time on a wide variety of activities. However, for some, things aren’t necessarily going according to plan.
This is according to Retiree Life in the Post-Pandemic Economy, a report released by the nonprofit Transamerica Center for Retirement Studies (TCRS) in collaboration with the Transamerica Institute.
The report provides detailed survey findings on the health and well-being, personal finances, and longevity planning of U.S. residents who are retired and no longer working. Based on the survey’s findings, these ten key facts illustrate retirees' experiences and vulnerabilities.
1. Retirees Are Active and Engaged
Many retirees remain active and engaged in meaningful ways. Since retiring, they report spending more time:
With family and friends (58%)
Pursuing hobbies (43%)
Traveling (36%)
Taking care of grandchildren (19%)
Doing volunteer work (16%)
Providing caregiving (10%)
2. Mixed Emotions: Happiness and Financial Stress
While most retirees have positive feelings about life, some experience financial and emotional stress.
Positive aspects of retirement:
89% report being generally happy
88% have close relationships with family and friends
86% say they are enjoying life
79% have a positive view of aging
79% feel a strong sense of purpose
53% have an active social life
Challenges retirees face:
30% struggle to make ends meet
27% often feel unmotivated and overwhelmed
24% frequently experience anxiety and depression
3. Early Retirement Trends
Retirees stopped working before the traditional retirement age of 65, with the median retirement age being 62. Many had their working years and time to save cut short.
58% of retirees left the workforce sooner than planned
Of those who retired early:
46% did so for personal health-related reasons
43% left due to employment-related issues
20% retired early for family-related reasons
Only 21% retired early because they were financially able
4. Juggling Financial Priorities
Retirees continue to manage multiple financial obligations. Their top financial priorities include:
Building emergency savings (31%)
Covering basic living expenses (29%)
Continuing to save for retirement (24%)
In addition, 45% cite paying off one or more forms of debt as a major priority, including:
Credit cards (30%)
Mortgages (20%)
Consumer debt (10%)
Student loans (3%)
5. Biggest Retirement Fears: Money & Health
Retirees’ top concerns include:
42% fear Social Security will be reduced or eliminated
37% worry that declining health will require long-term care
32% fear they will lose their independence
32% worry about outliving their savings and investments
28% are concerned about cognitive decline, dementia, or Alzheimer's disease
6. Social Security as the Cornerstone of Retirement Income
58% of retirees expect Social Security to be their primary source of income throughout retirement.
Most retirees started claiming Social Security before their full retirement age, with the median claiming age being 63.
Only 4% of retirees waited until age 70 or later, which would have maximized their monthly benefit.
7. Limited Financial Resources and Savings Shortfalls
The estimated median household income for retirees as of late 2023 was $55,000.
36% of retirees reported an annual income of less than $50,000.
Excluding home equity, the estimated median household savings was $71,000.
8. The Cost of Long-Term Care
The potential need for long-term care poses a financial challenge for many retirees:
Only 13% are very confident they could afford long-term care if needed.
Only 13% have long-term care insurance.
If their health declines and they require assistance, 48% plan to rely on family members and friends.
Few retirees have formalized their wishes in legal documents such as powers of attorney and advance directives.
9. Opportunities for Financial Improvement
Many retirees lack financial literacy and preparedness:
Only 24% say they have "a lot" of working knowledge about personal finance.
Only 19% have a written financial strategy for retirement.
Just 7% frequently discuss saving, investing, and retirement planning with family and close friends.
Only 33% use a professional financial advisor.
10. Retiree Regrets
Although 69% of retirees say they did as much as they could to prepare for retirement, many have financial regrets:
76% wish they had saved more and on a consistent basis.
68% wish they had been more knowledgeable about retirement savings and investments.
50% would have liked more information and advice from their employers on achieving retirement goals.
49% say debt interfered with their ability to save for retirement.
49% feel they waited too long to prioritize saving and investing.
Final Thoughts & Policy Implications
"Many retirees may wonder what they could have done differently to save and plan for retirement, and many may feel they have done everything right but still came up short," said Catherine Collinson, CEO and president of Transamerica Institute and TCRS.
"In reality, over their working careers, the world has changed, the retirement landscape has evolved, and the need to self-fund a greater portion of one's retirement income has intensified."
Collinson added that by gaining financial knowledge and taking greater control of their situation, retirees can make better-informed decisions to optimize their income and savings. She also emphasized the role of policymakers, industry stakeholders, employers, and nonprofits in providing innovative solutions to help retirees navigate financial challenges.
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