Research shows most American seniors regret at least one aspect of their retirement planning. Saving for retirement is all about preparing for the future. But once they reach retirement age, many Americans find themselves regretting the past.
“We think about the regrets that most of our survey respondents had, it was that they did not start saving early enough,” Nate Miles, Allspring's head of retirement, told Yahoo Finance Live about the company's recent global investment survey of 2,758 adults near and in retirement.
And about 15% of seniors end up regretting retiring earlier than they expected, according to a recent survey by Clever Real Estate. Here are three reasons why.
You may worry about managing financially on a fixed income, coping with declining health, or adapting to a different relationship with your spouse now that you're at home all day. The loss of identity, routine, and goals can impact your sense of self-worth, leave you feeling rudderless, or even lead to depression.
However, You Have Got to Be Ready if You Want the Happy Life After Retirement. Another study, this one from the Employee Benefit Research Institute, finds that while most seniors are indeed happy, a higher percentage are feeling more dissatisfied than before.
67-70 – During this age range, your Social Security benefit, if you haven't already taken it, will increase by 8% for each year you delay taking it until you turn 70.
How Many Older Adults are Depressed. The good news is that the majority of older adults are not depressed. Some estimates of major depression in older people living in the community range from less than 1% to about 5% but rise to 13.5% in those who require home healthcare and to 11.5% in older hospitalized patients.
Get Active!
Not only is exercise extremely beneficial to the body, it's also important for the mind and soul. Studies have shown that an active lifestyle can decrease feelings of loneliness and depression in retired seniors and help to manage stress and anxiety.
Failing To Take Into Account Inflation
Failing to take into account inflation is one of the biggest mistakes a retiree can make, because inflation causes the dollar to lose its purchasing power over time; meaning you need to consider the investment returns required to keep up with inflation.
The worst time to retire since 1929 turns out not to be the Great Depression, as most people would believe. In fact, the worst time to retire in history was 1966, followed by the Great Depression year of 1929.
If this sounds familiar, don't worry — you are definitely not alone. Even though most people see retirement as the time of life when you get to do what you want, go where you want, and live free, sometimes, that freedom doesn't feel so “free” and can turn into boredom.
So those retirees who take care of themselves in retirement and maintain a healthier lifestyle are generally happier than those who do not. Happy retirees are fans of what Moss calls the “ings.” These are low-cost forms of exercise such as walking, swimming, biking, and hiking.
The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.
Research shows a connection between the early stages of retirement and cognitive decline, and numerous studies indicate that retirement can exacerbate a slew of mental health challenges, including anxiety and depression.
The 3 R's of a Successful Retirement Transition: Resiliency, Resourcefulness, and Renaissance Spirit. Individuals and retirement planning experts alike are recognizing that a successful and satisfying retirement experience depends on more than a healthy nest egg.
In short, to enjoy a reasonably high expectation of not running out of money prior to death, you should never withdraw more than three percent of your initial portfolio value in retirement.
Minimum pension drawdown rules
Normally the minimum drawdown percentage factor begins at 4% if you are aged under 65 and rises gradually to 14% when you are 95 or older (see table below). These government-mandated rates are a rule of thumb based on advice from the Australian Government Actuary.
Measures of loneliness and social contact over time
More than one in three older adults (37%) reported feeling a lack of companionship (29% some of the time, 8% often) in the past year, compared with 41% (32% some of the time, 9% often) in 2020, and 34% (26% some of the time, 8% often) in 2018.
The average age of onset for major depressive disorder is between 35 and 40 years of age. Onset in early adulthood may be linked with more depressive episodes, a longer duration of illness, and therefore a more difficult clinical course.
More than two-thirds, or 76%, of U.S. adults aged 65 to 69 are still working, up from 70% thirty years ago. Septuagenarians are on the job, too. While 83% Americans who are aged 70 to 74 have officially retired, that's down from 88% in 1991.