9 surprising retirement facts
If you’re like most people, you’ve probably spent some time thinking about what you’ll do when you retire. Maybe you’ll do some traveling or relocate somewhere warm and sunny. You may even have spent time poring over your finances to see if there’s a way you can turn these retirement dreams into reality. No matter how much time you’ve devoted to planning, it’s totally normal to wonder what’s next. But as you get closer to retiring, there are a few facts worth keeping in mind that could really help you feel prepared. Consider the following:
1. The retiring population is bigger than ever before
Baby boomers are already in or near retirement, and the sheer size of this generation will have a compound effect on Social Security and health care programs. In 1950, adults aged 65+ represented just 8% of the population. That share has more than doubled as this age group now makes up almost 18% of the population and that number is expected to reach almost 23% by 2050.1
The vast size of this population and the uncertainty about the health of government programs make it that much more important to build your own strong and independent financial position as you near your golden years.
2. Retirement can be challenging for older Americans
According to the US Department of Health and Human Services Administration, 10% of people age 65 and older lived below the poverty level in 2022.2 The primary driver for poverty among older Americans is out-of-pocket medical expenses and this burden is unfortunately often passed down to their families. No matter how far off retirement is for you, it’s never too early to start saving. According to Guardian’s Retirement Redefined report, the top two financial regrets among retirees are not starting to save sooner and not saving enough.3
3. More than 10% of retirees rely on Social Security almost exclusively for income
As reported by the Social Security Administration, Social Security constitutes 90% or more of income for 12% of men and 15% of women who receive the benefits.4 Yet, benefits paid out have exceeded incoming funds since 2021, and it’s estimated that the Social Security trust fund will be depleted by 2033.5 If you have multiple sources of income, whether Social Security, retirement accounts, or others, take the time to understand your withdrawal choices. Tapping into those sources early gives you more money now but often means a decrease in the overall value of your payments. Conversely, delaying the start of Social Security past your Full Retirement Age (FRA) will earn you Delayed Retirement Credits for each month you delay up until age 70 when the benefit increase stops.
4. Your retirement portfolio may not sustain your retirement
The average retiree can expect to spend nearly two decades in retirement. The Social Security Administration reports that the average 65-year-old man can expect to live 19 more years to the age of 84. And the average 65-year-old woman can expect to live an additional 22 years to the age of 87.6 During this time, health care costs are one of the largest expenses for most people. According to the Fidelity Retiree Health Care Cost estimate, depending on health and location, a 65-year-old may need to have approximately $172,500 saved to cover health care expenses alone.7 So it’s not surprising that Guardian’s Retirement Redefined report shows 44% of Americans are concerned that their retirement savings won’t last as long as it’s needed.8
5. Your standard of living will likely change
Retirees are often prepared for a change in income level but may not be prepared to scale their lifestyle and living arrangements accordingly. This lack of preparation can lead to surprises as 27% of retirees say they didn’t expect their expenses to be so high in retirement.9
6. Retirement may impact your health
Retirement offers the promise of relaxation, but it can also come with mental and physical challenges. Almost half of retirees (47%) say they thought they’d be in better physical health/healthier in retirement.10 When you part ways with the working identity you knew for 40 or more years, you may not recognize your new life in retirement. Completing routine household chores or working on new hobbies may only take up a portion of your time, so planning how you want to fill the rest of your time is important. More than a third of retirees say they didn’t expect to miss their career or didn’t expect to be as bored in retirement.11 Your career likely required some degree of daily physical and mental activity, and it’s critical to maintain that level of activity, or even add to it, throughout retirement. Eighty-six percent of retirees with low emotional health say they thought they’d be healthier in retirement.12 Keeping physically active can help you improve memory, boost brain health, and reduce anxiety and depression, while staying mentally active may be protective against cognitive decline.13,14
7. There are tradeoffs with retirement age and health care benefits
Retiring early in good health gives you more time and energy for new hobbies and it may help you budget your retirement savings for medical expenses. But Medicare eligibility doesn’t begin until age 65, and few companies pay for retiree health insurance coverage. So, some retirees seek out alternate employment. It’s worth considering that if you retire before your full retirement age but earn employment income, the Social Security Administration deducts $1 for every $2 you earn above the 2025 limit of $23,400.15 However, it may be worthwhile to work simply for the health care benefits.
8. More people are working during their retirement years
Nearly 1 in 5 Americans aged 65 and older were still in the labor force in 2023 and 62% of them were working full time.16 Continuing to work during your retirement years because you have to can cause stress. According to research, 22% of retirees who didn’t expect to have to work during this time have low emotional health.17
9. Everyone has different living situations in retirement
The Administration on Aging reports that 59% of people aged 65 years or older live with a spouse or partner.18 And, many retirees still have significant family responsibilities. In 2022, the Administration on Aging also reported that more than a million grandparents aged 60 or more were responsible for the basic needs of grandchildren living with them.19 So as you plan for retirement, make sure you have the resources, both physically and financially, to take care of yourself and others.
Retirement is a goal for many but preparing for it takes some work. Everyone’s situation is different, reach out to me and I can help create a retirement plan that works for you.
Disclaimer:
1 Veera Korhonen, Share of the United States population aged 65 years and older from 1950 to 2050, Statista, June 16, 2025, https://www.statista.com/statistics/457822/share-of-old-age-population-in-the-total-us-population/
2 2023 Profile of Older Americans, US Department of Health and Human Services Administration for Community Living, May 2024, https://acl.gov/sites/default/files/Profile%20of%20OA/ACL_ProfileOlderAmericans2023_508.pdf
3 14th Annual Workplace Benefits Study, Guardian, 2025
4 Social Security Basic Facts, Social Security Administration, https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
5 Social Security is now expected to run short of cash by 2033, NPR, Mach 31, 2023, https://www.npr.org/2023/03/31/1167378958/social-security-medicare-entitlement-programs-budget
6 Retirement & Survivors Benefits: Life Expectancy Calculator, Social Security Administration, June 2025, https://www.ssa.gov/OACT/population/longevity.html
7 How to plan for rising health care costs, Fidelity, 2025, https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
8 14th Annual Workplace Benefits Study, Guardian, 2025
9 14th Annual Workplace Benefits Study, Guardian, 2025
10 ibid.
11 ibid.
12 ibid.
13 Physical Activity Boosts Brain Health, Center for Disease Control and Prevention, 2025, https://www.cdc.gov/physical-activity/features/boost-brain-health.html
14 6 Habits to Support Your Brain Health, AARP, https://stayingsharp.aarp.org/about/brain-health/brain-healthy-lifestyle/
15 How work affects your benefits, Social Security Administration, 2025, https://www.ssa.gov/pubs/EN-05-10069.pdf
16 Richard Fry and Dana Braga, Older Workers Are Growing in Number and Earning Higher Wages, Pew Research Center, December 14, 2023, https://www.pewresearch.org/social-trends/2023/12/14/older-workers-are-growing-in-number-and-earning-higher-wages/
17 14th Annual Workplace Benefits Study, Guardian, 2025
18 2023 Profile of Older Americans, US Department of Health and Human Services Administration, May 2024, https://acl.gov/sites/default/files/Profile%20of%20OA/ACL_ProfileOlderAmericans2023_508.pdf
19 ibid.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, financial, or accounting advice. Consult your tax, legal, financial, or accounting professional regarding your individual situation.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.
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