Retirement Realities: The Experience of Retirees

Retirement is a new chapter in life, bringing freedom, time, and opportunity to discover a different rhythm of life and purpose. At the same time, retirement also reveals the realities of living on a fixed income and managing health needs.

Retirees face financial fragility, especially being vulnerable to economic uncertainty, inflation, rising health care costs, and financial market volatility—all factors that can easily erode their buying power on limited income. Many are concerned about their health in older age and their ability to afford long-term care, yet many also have not solidified plans for when they may need caregiving support.

Retirement Realities: The Experience of Retirees, a collaboration between nonprofit Transamerica Center for Retirement Studies (TCRS) and Transamerica Institute, spotlights aging and longevity-related challenges of today’s retirees. Their real-life experiences, navigating health and finances and facing the need for caregiving and long-term care support, offer critical insights for strengthening retirement security for current and future generations of retirees.

Key findings include:

• Life Changes in Retirement: Retirees indicate their standard of living has stayed the same since retiring (66%). Many experienced improvements to their enjoyment of life (44%) and happiness (41%) but also declines in their general health (33%) and financial situation (28%).
• Financial Realities: Retirees have saved $126,000 in total household savings excluding home equity (estimated median) as of late 2024 – and 12% have no savings. More than half (53%) rely on Social Security as their primary source of income throughout retirement.
• Long-Term Care Needs: Nearly half (47%) plan to rely on family and friends, including their spouse (30%), family members (26%), and friends (5%) for receiving long-term care.
• Reflections on Life: While most retirees feel they did as much as they could to prepare for retirement, 69% wish they would have saved more on a consistent basis and 65% wish they had been more knowledgeable about retirement saving and investing.

The report is based on findings from the 25th Annual Transamerica Retirement Survey conducted in 2024, including more than 2,600 U.S. residents who are retired and do not work.