How has retirement changed in the post-pandemic era? Survey reveals a wide range of impacts

Social Security remains the financial backbone for most retirees, the survey found, with 91% depending on it as an income source and 58% identifying it as their primary source of retirement income. This heavy reliance creates vulnerability, as 42% of retirees cite Social Security funding shortfalls as their greatest retirement fear.

Debt management presents another significant challenge:

• 48% carry non-mortgage debt (median: $5,000).
• 30% have mortgage debt (median: $68,000).
• 45% list debt repayment as a top financial priority.

Also notable is the lack of formal financial planning among retirees. Only 19% have a written financial plan, and just 33% work with a financial professional, leaving many without structured guidance for assessing their financial future.

Health care decisions loom large in retirement planning. While 94% have health insurance and 76% maintain prescription drug coverage, gaps exist in long-term care preparation:

• Only 13% have long-term care insurance.
• 17% have no plan for receiving long-term care.
• 12% haven't thought about it at all.

Despite planning to live to age 90 (median), many retirees lack adequate preparation for potential health challenges. While 73% express concern about health in older age, only 19% actively consider long-term health when making lifestyle decisions.

Housing decisions reflect both practical needs and quality-of-life considerations. Most retirees (62%) remain in their pre-retirement homes, while those who relocate do so primarily to:

• Move closer to family and friends (36%).
• Downsize to smaller homes (33%).
• Reduce expenses (26%).
• Start a new chapter in life (24%).

When choosing where to live, retirees prioritize affordability (65%), proximity to family and friends (61%), access to quality health care (49%) and safety (48%). These priorities underscore the importance of both financial and social considerations in retirement planning.

Current retirees offer valuable insights for younger generations. When reflecting on their working years, 76% wish they had saved more consistently, and 68% acknowledge they should have been more knowledgeable about retirement saving and investing.

More than half of retirees (55%) believe future generations will face greater retirement challenges than they do. Their advice emphasizes early preparation, debt management and continuous financial education.

For those already in retirement, several strategies can enhance financial stability:

• Create a comprehensive written financial plan that accounts for longevity, health care needs and inflation.
• Consider delaying Social Security claims when possible to maximize benefits.
• Evaluate housing options to potentially reduce costs or tap into home equity.
• Explore part-time work or encore careers to supplement income.
• Investigate long-term care insurance or alternative care arrangements.
• Consult with financial professionals to optimize existing resources.

Beyond financial concerns, the survey reveals insights about retiree mental and social well-being. Retirement represents not just a financial transition, but a profound lifestyle change that impacts overall happiness and fulfillment.

The survey findings show that retirees experience mixed emotional outcomes. While 89% report being generally happy and 86% say they're enjoying life, concerning indicators of distress emerge:

• 27% often feel unmotivated and overwhelmed.
• 24% report frequent anxiety and depression.
• 17% experience isolation and loneliness.

Social connections prove vital to retirement satisfaction, yet only 53% of retirees maintain an active social life. This social engagement gap represents a significant opportunity for improving retirement quality of life.

Successful retirees actively pursue meaningful activities. The survey shows that retirement dreams and realities don't always align:

• 59% dreamed of traveling, but only 36% are doing so.
• 52% hoped to spend more time with family and friends, and 58% are achieving this.
• 41% planned to pursue hobbies, with 43% following through.
• Only 16% engage in volunteer work, despite its proven benefits for mental well-being.

To enhance mental and social well-being in retirement, consider these evidence-based strategies:

• Maintain regular social connections through community groups, faith organizations or hobby clubs.
• Practice stress management techniques (only 39% of retirees currently do so).
• Seek mental health support when needed (only 13% currently do).
• Volunteer or mentor to create purpose and community connections.
• Establish routines that provide structure while allowing flexibility.
• Pursue lifelong learning opportunities to keep mentally engaged.

Addressing these social and emotional aspects of retirement is equally important as financial planning for achieving a truly fulfilling retirement experience.

The Transamerica Retirement Survey finds that the most successful retirees approach retirement holistically — addressing not only financial security but also physical health, emotional well-being and social connections. While Social Security remains a foundation for most, supplementing this with thoughtful savings strategies, health care planning, housing decisions and purposeful activities creates a more resilient retirement. Perhaps the most valuable insight from current retirees is the importance of preparation and adaptability. Their experiences underscore that retirement is not a destination but a journey that requires ongoing adjustment and thoughtful planning.