Strategies for Making Your Retirement Aspirations a Tangible Reality, Overcoming Your Apprehensions
According to the 25th Annual Transamerica Retirement Survey, the top three retirement dreams among workers are traveling (65%), spending more time with family and friends (57%), and pursuing hobbies (49%). These aspirations reflect a desire for enjoyment, purpose, and connection in retirement.
However, retirement dreams often collide with retirement fears. Common concerns include financial insecurity, such as running out of money (41%) and Social Security reductions (44%). Health-related fears are also significant, including worsening health requiring long-term care (44%), dementia or cognitive decline (31%), and access to affordable healthcare (22%).
To address these dreams and fears and achieve a balanced and secure retirement, individuals can take several practical steps.
Financial Planning
Prioritize building savings with realistic targets aligned to desired retirement lifestyles. Many expect to need around $1.3 million, but savings expectations vary widely. Regularly review and adjust plans to address inflation risks and rising healthcare costs, including investing strategies that protect against inflation.
Working Longer or Part-time
Many pre-retirees plan to delay retirement or work during retirement to sustain income and savings.
Health Management
Engage in proactive health behaviors like regular checkups, exercise, good diet, and mindfulness to reduce health risks and support quality of life.
Home Accessibility
Prepare living spaces for aging in place by incorporating accessible design to maintain independence.
Seek Professional Advice
Consulting financial and retirement experts can help align fears and dreams with practical actions, ensuring a plan with purposeful goals and safeguarding against uncertainties like healthcare crises or market fluctuations.
Retirement also provides time for learning new skills and hobbies, which can replace work's purpose, boost mental health, and foster community. However, a 2025 AARP study noted that 25% of retirees struggle with finding purpose post-career.
Leaving the workforce can lead to feelings of a lack of purpose, especially if your identity was tied to work. Retirement offers time for pursuing interests, such as painting, gardening, golf, or volunteering. Some retirees envision paying off their home and having a nest egg to check off bucket-list destinations or visit family without work constraints.
However, unexpected expenses can drain savings you put aside for gifting or helping fund your grandkids' education. Medicare doesn't cover long-term care, and out-of-pocket costs can balloon. In 2025, the average cost for a couple's healthcare in retirement is $315,000, according to Fidelity.
Approximately one-third of workers dream of doing some form of paid work in retirement, with self-employed and employed workers being more likely than unemployed workers to harbor this dream. Many retirees dream of simplifying life and downsizing, moving to a smaller home or a retirement community to reduce essential expenses.
Americans believe it takes $839,000 to be "financially comfortable," according to Charles Schwab's 2025 Modern Wealth Survey. A striking 17% of unemployed workers say they have no retirement dreams at all.
By combining financial preparedness with health management, purposeful activity, and realistic planning, individuals can transform retirement fears into manageable challenges and realize their dreams more securely and joyfully.
Personal-finance considerations such as building savings and investing wisely can help individuals address worries about financial insecurity during retirement and achieve their dreams of pursuing hobbies or traveling. Seeking professional advice from financial and retirement experts can further help align financial goals with practical actions and safeguard against uncertainties.
When it comes to personal-finance management, staying aware of rising healthcare costs and inflation risks is crucial to maintain a balanced lifestyle in retirement. Factors like unexpected expenses and the lack of coverage for long-term care can significantly impact the financial aspect of retirement planning.
