More than two-thirds of retirees wish they would have saved more and on a consistent basis — and half wish they hadn't waited so long “to concern themselves with saving and investing for retirement,” according to the researchers.
Many retirees continue working part time, spending an average of 1.42 hours per day on paid work or income-generating activities. Retirees spend more time volunteering, socializing and engaging in hobbies like reading and home maintenance than younger groups.
As part of a larger study from Harvard on happiness, researchers found that retirees don't miss working. Instead, they miss the people they worked with. Anecdotal evidence from the study participants showed they missed the connections and friendships with coworkers.
According to their table, for instance, the average remaining lifespan for a 65-year-old woman is 19.66 years, reaching 84.66 years old in total. The remaining lifespan for a 65-year-old man is 16.94 years, reaching 81.94 years in total.
1. Florida. Florida ranks as the best state to retire due to its relatively low taxes, including no estate, inheritance or income taxes.
The median income for Americans 65 and older is $50,290. The mean (average) is $75,020. Average annual expenditures for Americans 65 and older are $57,818. The average Social Security retirement benefit check is $1,907 as of January 2024.
1. Saving Enough Money: Perhaps the top retirement concern is the idea that without steady employment, it might be difficult to have enough resources to maintain your preferred lifestyle.
Nearly half of Americans retiring at 65 risk running out of money, Morningstar finds.
Retirees who took steps to set themselves up financially and take care of their health at least five years prior to retirement are more likely to report being much happier in retirement.
Around 1 in 3 retirees say they feel depressed or down after retiring, and it makes sense. Moving from one era to the next is a huge transition, and big life events make an impact on mental, emotional and physical health.
Senior Citizens' Saving Scheme
SCSS is arguably the first choice for most retirees.
The presence of death anxiety is reported to peak in middle age and disappear in the elderly (20, 24, 25).
You might feel a sense of loss, particularly if your career was a big part of your identity. And the sudden shift from a busy, structured work life to a more open-ended schedule can leave you feeling uncertain. Plus, losing the social life that comes with working can cause feelings of loneliness.
Among current retirees, 31% say declining health or illness is their biggest worry, according to CNBC's August 2024 Your Money retirement survey conducted with SurveyMonkey — the most common response.
Let's say you consider yourself the typical retiree. Between you and your spouse, you currently have an annual income of $120,000. Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.
According to data from the Social Security Administration, as of January 2024, the average monthly retirement benefit payment was $1,909.01, which comes to about $22,322 per year.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
The results
The top two states to retire in according to our formula are — drumroll please — Alaska and New Hampshire!
Retiring abroad on $1,000 per month doesn't mean sacrificing quality of life. Many countries offer excellent health care, infrastructure and amenities at a fraction of the cost compared to the U.S. The cheapest places to retire abroad include Panama, the Philippines, Portugal, Malaysia, Mexico, Thailand and Vietnam.