Ten Important Facts About Today’s Retirees
The compendium offers more than 50 indicators of retirees’ health and wealth by age range, including the
following 10 facts:
1. Just getting by and/or covering basic living expenses is the most frequently cited financial priority. Retirees
cite financial priorities including just getting by and/or covering basic living expenses (42 percent), paying
healthcare expenses (37 percent), paying off mortgages (21 percent), and continuing to save for
retirement (20 percent). An alarming 25 percent of retirees cite paying off credit card debt as a financial
priority. Most retirees are living on a modest income. The annual household income among retirees is
$32,000 (estimated median); however, there is a sizeable gap between those who are married ($48,000)
and unmarried ($19,000).
2. Social Security is the cornerstone of retirement income. Social Security (89 percent), followed by other
savings and investments (48 percent), company-funded pension plans (42 percent), and
401(k)/403(b)/IRAs (37 percent) are the most frequently cited current sources of income among retirees.
Among those currently receiving income from Social Security, the median age they started collecting
benefits was 62, despite major reductions to their monthly benefits. Only one percent waited until age 70,
the age at which one can receive maximum monthly benefits.
3. Retirees’ confidence about maintaining their lifestyle exceeds the size of their nest eggs. Seventy-two
percent of retirees are “somewhat” or “very” confident that they will be able to maintain a comfortable
lifestyle during retirement. However, fewer than half (46 percent) agree that they have built a large
enough retirement nest egg. Current household savings among retirees in all retirement accounts stands
at $119,000 (estimated median), with a wide disparity between retirees who are married ($224,000) and
unmarried ($40,000).
4. Sixty percent of retirees retired sooner than planned. Retirees in their fifties (79 percent) are far more
likely to have retired sooner than planned, when compared to older retirees. Two-thirds (67 percent) of
retirees in their sixties and 53 percent of age 70-plus retirees retired sooner than planned. Across age
ranges, fewer than 10 percent retired later than planned.
5. Reasons for retiring sooner than planned range from employment-related reasons to health issues.
Among retirees who retired sooner than planned, two-thirds (66 percent) cite employment-related reasons
for having done so. However, reasons for retiring sooner than planned vary by age range. Age 70-plus
retirees (70 percent) were most likely to retire due to employment-related reasons, while retirees in their
fifties (52 percent) were most likely to do so because of their own ill-heath. Only 12 percent of retirees of
all ages who retired sooner than planned say they did so because they saved enough money and could
afford to retire.
6. Retirees expect a long retirement and most say they are in good health. Retirees expect to live 28 years
(median) in retirement, and 41 percent expect a retirement of more than 30 years. Most retirees (70
percent) believe that they are in good or excellent health with one notable exception: retirees in their fifties.
Only 55 percent of retirees in their fifties consider themselves in good or excellent health. Moreover, 45
percent of retirees in their fifties say they are in fair or poor health, a finding that is much higher than
retirees aged 60 and older.
7. Most retirees are happy and enjoying life. The vast majority of retirees say that they are a generally happy
person (94 percent), are enjoying life (90 percent), and have a strong sense of purpose (84 percent).
However, some say that everyday activities are becoming more difficult for them (31 percent) and/or that
they are having difficulties making ends meet (28 percent). Eleven percent feel isolated and lonely.
8. Retirees spend their time in a wide variety of activities. Retirees most frequently cite spending more time
with family and friends (53 percent), pursuing hobbies (40 percent), and traveling (33 percent) as ways
they are spending their time in retirement. Twenty-four percent are doing volunteer work and 11 percent
are taking care of their grandchildren. Retirees under age 65 are more likely than older retirees to say they
are traveling (72 percent vs 62 percent, respectively) and pursuing hobbies (54 percent vs 42 percent,
respectively). In contrast, retirees age 65 and older are more likely to be doing volunteer work.
9. Retirees’ fears evolve with their age and stage in life. Retirees most frequently cite declining health that
requires long-term care (44 percent) and a reduction in or elimination of Social Security (44 percent) as
their greatest retirement fears, closely followed by outliving their savings and investments (41 percent).
Notably, more age 60-plus retirees cite declining health that requires long-term care as a fear. In contrast,
more retirees in their fifties fear difficulties in finding meaningful ways to spend their time, not being able
to meet the basic needs of their families, and/or feeling isolated and alone.
10. Few retirees have a written financial plan for their retirement. More than half of retirees (54 percent)
indicate that they have a retirement strategy, but only 10 percent have it in writing. Among retirees with a
retirement strategy, most factor Social Security and Medicare benefits (88 percent) into their current
strategy – and many include ongoing living expenses (71 percent), healthcare costs (60 percent), a budget
for basic living expenses (60 percent), total savings and income needs (60 percent), and investment
returns (56 percent). However, relatively few consider important factors such as pursuing retirement
dreams (31 percent), inflation (30 percent), estate planning (26 percent), tax planning (25 percent), and
long-term care insurance (23 percent). Only seven percent have contingency plans for retiring sooner than
expected and/or savings shortfalls.
I do think many older adults think they are healthy. I know if you had asked me at 52, I would have said "heck yeah". the problem is with anything you don't know what's going to "creep up". now I'm in line for knee replacement, who knew.
