Retirees are generally happier in retirement than in the workforce, but like many things in life, there are gaps between expectation and reality according to the latestMassMutual Retirement Happiness Study.
"The happiest retirees invest not just in their financial futures but also in their social circles and physical health long before retirement,"Paul LaPiana, head of brand, product and affiliated distribution withMassMutual, said in a statement. These investments can help mitigate loneliness in their older years, which the U.S. surgeon generaldeclareda public health epidemic last year."
Preparation Matters
While preparing for retirement, current retirees focused on their finances more than health or social connections.
- In the lead-up to retirement, retirees were most focused on shoring up their finances by contributing to a retirement account (64%) and increasing their savings (60%), though 13% of retirees regretted not taking better care of their health.
- Nearly half (49%) of retirees who are much happier in retirement planned by taking care of their health.
- Only 7% of retirees reached out to their social circles as part of their retirement planning.
Retirement Blues
While many retirees experience increased happiness in retirement, a noteworthy number admit to feeling lonely.
- 31% of retirees report feeling forlorn at times. Of the 33% of retirees who are not happier in retirement, nearly half agree that retirement occasionally makes them feel lonely.
- A third of retirees who are not happier in retirement report less opportunity for dating and romance in retirement than they expected.
- Retirees who are much happier in retirement are more likely to fill their free time with social activities, including spending time with loved ones (76%), exercising (70%), pursuing hobbies (63%) and travel (62%).
Expectation Versus Reality
Apprehensions and high hopes abound headed into retirement, though there are discrepancies between what people expect in retirement versus what transpires.
- 77% of pre-retirees anticipate feeling happier on a typical day in retirement compared to 67% of current retirees who say they are happier. 75% of pre-retirees expect to feel less stressed, which matches retirees’ experiences.
- Retirees reported having fewer financial problems (46%) and were less bored (45%) than they anticipated. Retirees also enjoyed more free time (30%) and spent more time with family and friends (26%) than they expected.
- 44% of pre-retirees feel anxious about how their finances will support them through retirement, and 34% of retirees cite health issues as their number one concern.
- Pre-retirees envision an active retirement lifestyle with traveling (79%) and exercising (71%) rising to the top of their lists. In contrast, watching TV is the top activity for current retirees (83%).
On average, 63 is the ideal age for retirement, andmost retirees report retiring earlier than or exactly when expected. However, there are indications that future retirees could have more difficulty retiring at their ideal age.
- 48% of retirees retired earlier than planned, usually because of changes at work (33%) or being able to afford to retire sooner (28%). 17% retired earlier due to burnout.
- Pre-retirees are anxious about their retirement savings, with 35% reporting their funds are tracking behind where they believe they need to be to retire at their ideal age. 34% express concern they will outlive their money, which is significantly higher than the 22% of retirees reporting the same worry.
Most retirees report having ample retirement savings for the rest of their lives, likely due to sound financial planning and a disciplined approach to spending.
- 78% of retirees say they have more than they need or about what they need in retirement savings while 19% have less than they need.
- Recently retired respondents are more likely to report feeling less secure in their savings (21%) compared to those now retired for over a decade (12%), suggesting a greater need to plan for market volatility, high interest rates and other macroeconomic trends that may impact pre-retirees’ nest eggs.
- To manage economic headwinds, 52% of retirees are spending less, 30% are consulting a financial professional, and 28% are creating a budget. Pre-retirees expect to do much of the same when they retire.
FAQs
Retirees who are much happier in retirement are more likely to fill their free time with social activities, including spending time with loved ones (76%), exercising (70%), pursuing hobbies (63%) and travel (62%).
Who is most likely to be happy after retiring? ›
“97% of retirees with a strong sense of purpose were generally happy, compared with 76% without that sense.”
Why do people enjoy retirement? ›
health, and financial well-being are important ingredients for the enjoyment of life in retirement. In addition, being involved in physical activities, hobbies or volunteer work and researching retirement issues while still at work help make the transition to retirement a success.
Is it healthier to keep working or retire? ›
“There are also health benefits of continuing to work as you age,” says family medicine and sports medicine physician Dr. Teresa Coyle. “Going to work provides you with natural socialization and friendships, helps you maintain a sense of purpose, and slows cognitive decline by providing mental stimulation.
What is the happiest retirement age? ›
The early retiree then experiences peak levels of happiness from ages 55-to-75 until their health starts to fade.
What is the biggest retirement regret among seniors? ›
Along with getting a late start on saving, some retirees also ignored other planning activities. Many are realizing that mistake now, with the Schroders survey finding 63% of retirees wish they had done more planning before retirement.
Are retired people happier than working people? ›
MassMutual Research: Most Retirees are Happier in Retirement vs. Working Thanks to Financial Preparation, but More than One Third Report Feeling Lonely.
What is the biggest problem for retirees? ›
Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.
What do retirees miss the most? ›
Retirees don't miss working, they miss the people
One participant, when asked what he missed about being a doctor for nearly 50 years, answered: "Absolutely nothing about the work itself. I miss the people and the friendships."
Is 65 too late to retire? ›
And while there's a lot of guidance out there on how to make your retirement nest egg last for 30 years, retiring at 65 could, for some people, mean having to stretch their savings for more than 30 years. Plus, age 65 isn't when full retirement age for Social Security kicks in. For someone in my boat, that age is 67.
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
What percentage of 68 year olds are still working? ›
About 26% of people between 65 to 74 are continuing to work, and that number shrinks to about 7.3% for people over 75, according to census data. "We can recognize that these folks are indeed not representative of the underlying cohorts that they're born into," he said.
What is the best age to retire for long life? ›
When they looked at the sample of 2,956 people who had begun participating in the study in 1992 and retired by 2010, the researchers found that the majority had retired around age 65. But a statistical analysis showed that when people retired at age 66 instead, their mortality rates dropped by 11%.
What is the smartest age to retire? ›
The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.
At what age do you get 100% of your social security? ›
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.
What is the golden age of retirement? ›
There was never a “golden age” of retirement in America. Retirees 30 or 40 years ago did not have it better than retirees today. Retirees do not have it so much better in other countries. There is no nirvana of free everything for the over-65s.
What percentage of retirees are happy? ›
About 67% of retirees who are 15 years or less into retirement said they're happier since retiring, and 82% said they're more relaxed on a typical day. While only 8% report feeling less happy in retirement, about a third said they're not more happy than they were before leaving the workforce.
Do retirees tend to be happier than younger people? ›
New study finds people get happier as they grow older
Older adults generally report greater satisfaction with their close friends and family members, which may also explain why people who are older have relatively stable levels of well-being over time.”
What percentage of people get depressed after retirement? ›
Almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall.
What is the average life expectancy after retirement? ›
According to their table, for instance, the average remaining lifespan for a 65-year-old woman is 19.66 years, reaching 84.66 years old in total. The remaining lifespan for a 65-year-old man is 16.94 years, reaching 81.94 years in total.
