Economic volatility, pandemic aftereffects and changing expectations about life after work continue to impact the way Americans approach retirement. The modern-day retiree faces challenges where financial stability overlaps with health considerations, housing choices and the search for meaningful activities. The Transamerica Retirement Survey — one of the most comprehensive studies of its kind — reveals a telling contrast: while 43% of retirees report greater life satisfaction post-pandemic, 34% experience worsening financial situations. This division highlights a reality of modern retirement, where success depends not only on saved assets but on flexibility, planned strategies and attention to wellness.
The survey also finds that the majority of retirees (65%) maintain the same standard of living they had before retiring, though many have adapted by decreasing spending habits (50%). Most notably, while retirement brings freedom and opportunity, it also introduces financial constraints. Financial preparedness varies dramatically among retirees. While 70% express confidence about maintaining a comfortable lifestyle throughout retirement, this optimism isn't always backed by adequate savings.
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:
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:
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:
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:
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:
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:
To enhance mental and social well-being in retirement, consider these evidence-based strategies:
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.
Alliance America is an insurance and financial services company dedicated to the art of personal financial planning. Our financial professionals can assist you in maximizing your retirement resources and achieving your future goals. We have access to an array of products and services, all focused on helping you enjoy the retirement lifestyle you want and deserve. You can request a no-cost, no-obligation consultation by calling (833) 219-6884 today.