The impact of health on retiree lifestyles and satisfaction with life.

The impact of health on retiree lifestyles and satisfaction with life.

Background and Methodology

•      This report presents the results of research conducted by Greenwald & Associates on behalf of MassMutual, examining the impact of health on retirees’ lifestyles and satisfaction with retirement.

•      The research surveyed 905 retirees who were one to 15 years into retirement and 912 pre-retirees who were one to 15 years before retirement.

•      Respondents were required to be at least 40 years old, to have at least $50,000 in savings and investments, and to at least share a role in the household’s financial decision-making.

•      The 15-minute survey was conducted online using ResearchNow’s online consumer research panel. Fielding took place in September 2014.

•      A similarly sized random sample of 905 respondents would have a margin of error at the 95 percent confidence level of plus or minus 2 percentage points.

Health and Wealth Contribute to Retirement Satisfaction

•      Health predicts satisfaction with retirement: it is critical to a good retirement

•      Healthcare expenses are higher than what retirees had expected.

•      Pre-retirees are worried about encountering health problems in retirement.

•      Retirees share pre-retirees’ sentiment, and they are acutely aware of the increasing cost of healthcare.

•      Retirees are concerned about their ability to manage healthcare expenses in the case of chronic and debilitating illness, including the cost of long-term care.

•      Health and wealth predict retirees’ ability to engage in enjoyable activities in retirement, including traveling/vacations, hobbies, and dining out.

•      Retirees are concerned about the potential for health declines in the future and they indicate wanting to avoid placing any burden on their family, particularly their children.

Importance of Health

•      Having higher assets and income in retirement is unsurprisingly linked to feelings of financial security and being able to afford a comfortable lifestyle, but it doesn’t necessarily make retirees happier or more fulfilled.

•      Health actually appears to be the more important driver of well being in retirement. Those in better health are more likely to enjoy retirement and feel fulfilled, have new experiences and opportunities in retirement, and are less likely to experience several negative retirement outcomes.

Health & Wealth

•      Health is a major driver:

•      87% of retirees in better health felt secure at retirement vs. 69% of those in poorer health.

•      The loss of health is costlier to retirees’ overall experience than the loss of wealth.

•      76 percent of retirees with $250,000 or more in assets report having a positive retirement experience, compared to 68 percent of those with less than half the assets.

•      However, 80 percent of retirees in better health report having a positive experience in retirement, compared to only 59 percent of those who are in poorer health.