A recent survey of retirees has found that despite the financial upheavals of recent years, retirement is still a source of happiness for most people.
The survey, sponsored by TIAA, spoke to 1,583 retirees between May and August last year and asked them whether they were satisfied with retirement. A surprisingly high 93 percent of those who took the survey said they were ‘very satisfied’ or ‘somewhat satisfied’ with retirement and 47 percent said that retirement had exceeded their expectations.
One factor that seems to correlate with the level of happiness experienced by retirees is the extent to which they had planned their personal finances for retirement. A significant 70 per cent of respondents stated that they had some form of defined benefit pension or annuity.
These findings were echoed by a study earlier this year from the Employee Benefit Research Institute which found that nearly three-quarters of people in the highest asset quartile found retirement satisfying, compared with one third of those in the lowest quartile, and only 18 per cent of those in the lowest income group have ever had a defined benefit plan.
The report has highlighted the importance of making adequate arrangements for retirement, which involves doing your homework, particularly when it comes to annuities. Along with paying off your mortgage and dealing with tax issues, preparing for your financial well-being post-retirement is one of the most important financial steps you can take.
Let the free MoneyTips Retirement Planner help you calculate when you can retire without jeopardizing your lifestyle.