Six Surprising Facts About Retirement Confidence
- LampPost Planning
- Aug 1
- 2 min read
Planning for retirement often feels straightforward, save consistently, pay off debt, and rely on Social Security or other income streams when the time comes. But the reality for many retirees looks very different from what they expected. Here are six numbers that highlight where plans and reality often diverge:
Nearly half of all retirees report higher expenses than anticipated.
Travel, hobbies, and day-to-day costs add up quickly, but it’s often the unexpected—like home repairs or rising living expenses—that creates the biggest surprises.
17% of retirees find that extended care costs, which Medicare does not cover, are higher than expected.
Medicare doesn’t cover everything. About 17% of retirees find that long-term or extended care costs—such as nursing homes or in-home support—are much higher than they anticipated. Without a plan, these expenses can erode savings faster than expected.
33% of retirees-to-be expect Social Security to be a significant factor in their retirement, when in reality, 67% of retirees find it their most important source of income.
Before retirement, only a third of workers think Social Security will be their main source of income. In reality, two-thirds of retirees find it becomes their most important financial lifeline.
While more than half of workers believe they will retire at age 65 or older, the actual median retirement age is 62.
Many people picture working until at least 65, but the median retirement age is just 62. Health issues, job changes, or family responsibilities often push people out of the workforce earlier than they planned.
More than half of people approaching retirement describe debt as a problem and many make debt reduction a primary goal.
More than half of people approaching retirement describe debt as a challenge, and reducing it becomes a key goal. Carrying mortgages, credit cards, or other balances into retirement can make it harder to stretch your income.
Private health care costs can be mroe expensive than expected. With that in mind, it's a good idea to have a financial strategy in place for these and other costs.
Even with Medicare, private health care plans and supplemental coverage can be costly. As medical needs grow, these expenses often rise faster than anticipated, catching many retirees off guard.
Here's the good news: its never too late to update your retirement strategy, especially as your medical needs change.
Sources:
EBRI.org, 2023