Preparing for life changes during your golden years can be an unforeseen challenge of retirement. Planning for physical and financial health changes during working years can help ease the transition. According to MassMutual’s 2024 Retirement Happiness Survey, pre-retirees are more likely to take care of their health, increase savings, and reduce expenses than retirees. The study also found that most retirees feel happier (67%) and less stressed (75%) than when working full-time.
However, there is a gap between how many workers think they’ll be happy in retirement (77%) compared to how many retirees actually report being happy (67%). Additionally, almost two in three workers (61%) think they’ll be excited during retirement, versus just 41% of retirees who report excitement. While retirees generally report feeling happy, workers overestimate their happiness and stress levels in retirement.
Financial security strongly influences retirement happiness. One key indicator of retiree happiness is financial stability. 61% of those who report being happier in retirement note that they worked to pay off all debts at least five years before retiring. Less than half of those unhappy in retirement note that they did not pay off all debts before retiring. Happiness and contentment in retirement also impact physical health. Nearly half of those who report being happier in retirement indicate they prepared for such life events by prioritizing their health by eating well and exercising.
Happier retirees also tend to prioritize social activities more than those reporting unhappiness, such as spending time with loved ones (76% vs. 58%), pursuing hobbies (64% vs. 44%), and traveling (62% vs. 44%). However, the overall retirement outlook is more positive than it is negative. Most retirees (78%) note that they have what they need, if not more, in retirement savings. While workers may be overestimating their level of happiness in retirement, they may also be overestimating their anxieties in retirement. Improving physical and financial health during working years can pay off in the long term.
Adjusting to a new phase of life is often challenging, regardless of age. Therefore, it’s important that your finances are aligned with your planned expenses and that you budget for leisure activities that will contribute to personal happiness. Tips for workers include considering your current asset mix, calculating when you’ll start collecting Social Security, estimating retirement income and expenses, and identifying where you’ll live in retirement.
For retirees, keeping a daily routine, resisting the urge to overspend, staying active, and keeping in touch with friends and family are important factors in maintaining happiness during retirement. By following these tips and planning ahead, individuals can better prepare for the life changes that come with retirement and ensure a smooth transition into their golden years.