Many Americans dream of the day when they hang up their briefcase and enter the third act of life, but a recent study suggests that retirement isn’t everyone’s joy.
A new survey from insurance company MassMutual found that one-third of retired adults have not been happier since retiring. Among those interviewed, many report feeling lonely. However, there may be some factors that could increase the happiness and sense of satisfaction of these retirees.
MassMutual surveyed 2,000 U.S. retirees and workers nearing retirement in late January and early February.
The keys to happiness in retirement
According to the survey, in most cases, retirement increases people’s sense of well-being. About 67% of retirees who have been retired for 15 years or less said they were happier since retiring, and 82% said they were more relaxed on a typical day.
While only 8% say they feel less happy in retirement, about a third say they are not Moreover happier than they were before leaving the world of work. Nearly half of those who no longer feel happy in retirement said they felt lonely sometimes, and 33% said there was less romance or dating in their lives.
Respondents who said they were happier in retirement shared a few things in common. 61% of those who reported feeling “much happier” said they had paid off their debt at least five years before retiring. By comparison, among those who are no longer happy, only 48% said the same about debt. And nearly half of the happiest said they had planned for retirement by taking steps to improve their health, while only 32% of those who were no longer happy said the same.
The happiest retirees also fill their free time with activities: 76% say they spend time with loved ones, 70% make sure to exercise, 63% cultivate hobbies and 62% say they travel.
Changing definitions of retirement
Many of today’s “pre-retirees” have a different view of their retirement. MassMutual defines this group as workers who are at least 40 years old, have at least $50,000 in savings and investments, are active in family financial planning and are within 15 years or less of retirement.
Rather than leaving the workforce entirely, 38% of pre-retirees believe retirement should be a shift to a “new type of job or fulfilling purpose,” while 17% see it as less work. By comparison, 60% of retirees define retirement as “the end of work,” while only 44% of pre-retirees said the same.
Pre-retirees are prioritizing their well-being in retirement planning, with 66% saying they are taking steps to improve their health. In terms of financial preparedness, 65% said they were focusing on making contributions to a retirement account, and a similar share said they were increasing their savings. Just over half said they are calculating how much they will need in retirement.
Those who are already retired were more focused on their finances than their physical and social health before retiring. Only 39% said they had taken steps to take care of their health, and only 7% said they had contacted old friends or tried to make new ones before retirement.
Retirement trends and ideal retirement age
Other survey data shows that nearly half of retirees left the workforce earlier than expected, with 33% reporting they did so due to changes at work. Twenty-eight percent said they were able to afford retirement earlier than expected, and about a quarter said they had had to leave work early due to illness or injury.
The same percentage said they wanted to relax and enjoy more free time, and 17% said they retired early because they were exhausted.
On average, both retirees and pre-retirees said 63 was the ideal age for retirement – and current retirees left the workforce pretty close to that threshold. The survey found that 62 is the average retirement age, but future retirees may have some difficulty retiring on time.
More than a third of early retirees said their savings are not on track for retirement at 63, and a similar share said they believe they could outlive their money. By comparison, only 22% of current retirees are worried about running out of retirement funds.
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