To illustrate the differences between the expectations and realities of retirement, a study was done by the Harvard School of Public Health that concentrated on two separate groups: those who were approaching retirement, and those who had already reached it. Questions were asked of each group to determine these differences. Here is a look at what they found, which you can also check out this video.
Element #1: Overall Quality of Life
The first thing they looked at was the overall quality of life. Basically, they were looking for the feelings of each participant as to what they expected from their quality of life, and how it actually turned out for those who were already retired.
The Expectation: Of those surveyed who were on their way to retirement, 14% predicted that the overall quality of life would negatively change for them once they reached retirement. This indicated that the vast majority of people believe that very little will change, overall.
The Reality: For those who are already retired, 25% of them claimed that their quality of life had, in fact, become worse. While that is not necessarily a huge jump, it does represent a misinterpretation by quite a number of people.
Element #2: Finances
As you can imagine, holding onto your finances throughout retirement is an important part of your future. This is why many retirees find themselves working through their retirement. But you'd never know it, according to the expectations of those surveyed.
The Expectation: Study participants showed more confidence than you might expect in regards to their finances. In fact, only 22% believed that their financial outlook would be worse during retirement.
The Reality: Although the difference isn't huge, the fact that 35% of retirees confirmed they were financially worse off once they retired isn't exactly uplifting.
Element #3: Health
As we grow older, our bodies become more easily sick and injured. We are also more susceptible to a number of diseases, and many problems stem from old age. Yet, even with these facts, there was still a sizable difference between expectation and reality.
The Expectation: Despite the obvious fact that our bodies break down as we age, a mere 13% of participants believed that their health would deteriorate after retirement.
The Reality: Existing retirees painted a much different picture. According to them, an incredible 39% experienced a decrease in their health during retirement. In fact, this represents the largest number in the survey.
Element #4: Exercise
Exercise has been a common staple in the lives of millions of Americans, whether it's weightlifting, cardio, jogging, or even Zumba. Unfortunately, the amount you expect to exercise and what you can actually do as you get older is often different.
The Expectation: This was the most shocking result in the entire survey. An amazingly small 1% stated that they expected their exercise capabilities to diminish once they reached retirement. That is far from the reality.
The Reality: Proving that expectation is often way off from the reality of life, 34% of those who were already retired stated that their ability to exercise had decreased. That is not very hopeful, to say the least.
Element #5: Travel
Many people love to travel, whether it's by boat, plane, car, or some other means. Unfortunately, travel is another element hit hard by retirement.
The Expectation: Of those who were approaching retirement, only 11% believed that their love of travel would be negatively affected.
The Reality: Unfortunately, 34% of participants who were already retired reported a decrease in their ability to travel.
So what can you do with this information? Start planning now so that you are able to meet your expectations for retirement. You can schedule a free, no-obligation appointment with our advisors to set out on the right path.
Source: http://firstsecurityfinancialshow.com/blog/bid/174327/The-Expectations-and-Realities-of-Retirement
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