What’s the most important factor in ensuring a happy retirement? If you said “your health” or “having enough money to live comfortably,” you have only part of the answer. When we recently surveyed Consumer Reports subscribers, we found surprising themes about what satisfaction in retirement involves.
Our survey respondents—online and print subscribers ages 55 to 75 who were recently retired, semiretired, or not yet retired—were a somewhat special group, financially. Those who were five years from retirement had median savings of $680,000, vs. $100,000 in median retirement savings for preretirees nationwide.
Nonetheless, their experiences and attitudes generate universal lessons.
You’re happier when you know what’s ahead
Those whose retirement expenses were in line with expectations were more satisfied than those who were caught off-guard. As the chart below shows, recent retirees with less than $250,000 in savings who said their expenses weren’t higher than they expected were more content than those with $1 million or more who had underestimated.
Of course, retirement can be fraught with uncertainty, particularly when it comes to health and long-term-care costs. But the results suggest that it’s worth attempting to determine the numbers in advance.
The good news: Survey respondents who expected to retire within the next five years were preparing. Fifty-eight percent had talked to relatives and friends about their plans. About two-thirds had read books or articles about retirement planning. More than half had used a retirement calculator.
In contrast, respondents who told us they’d never retire—largely because of insufficient savings—had taken fewer steps to map out their future. Sixteen percent said they had done nothing.
That could be an error if their projections prove false. About a third of recent retirees told us they’d left their jobs involuntarily.
Learn more about retiree health, financial planning, and lifestyles through the Consumer Reports Retirement Planning Guide.
Develop hobbies and connections
Money doesn’t buy happiness. OK, scratch that: Money helps. In our survey, retirees with more savings were generally more satisfied than those with less. But nonfinancial factors that encourage social engagement could help as much, if not more. Retirees with less than $250,000 in savings who reported having friends and hobbies were more satisfied than those with $1 million or more who reported lacking those resources.
Building those networks could involve rekindling interests or personal contacts that were neglected during workaday life. Beginning the process before retiring could ease the transition.
Focus on gains, not losses
A corollary to keeping engaged in retirement is being comfortable with your “retired self.” Moving to civilian life can be disconcerting. The routine, the colleagues with whom you share history and speak the same lingo, and the imperatives are gone. Money isn’t the point; across all savings levels, retirees in our survey who felt a lack of identity were far less satisfied than those without that concern.
That underscores the importance of viewing retirement with a positive attitude, as an opportunity for growth. Now’s your time to uncover new sides of yourself. You might even meet people in the same boat willing to take that discovery journey with you.
—Tobie Stanger
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