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 is expected to reach almost 23% by 2050.¹

The vast size of this population and the uncertainty surrounding government programs make it more important than ever to build a strong and independent financial position as you approach retirement.

2. Retirement can be challenging for older Americans

According to the U.S. Department of Health and Human Services, 10% of people age 65 and older lived below the poverty level in 2022.² Out-of-pocket medical expenses are a major contributor and are often passed down to families.

No matter how far off retirement is, it’s never too early to start saving. According to Guardian’s Retirement Redefined report, the top regrets among retirees are not starting early enough and not saving enough.³

3. More than 10% of retirees rely almost entirely on Social Security

Social Security provides 90% or more of income for 12% of men and 15% of women who receive benefits.⁴ Benefits have exceeded incoming funds since 2021, and the trust fund is projected to be depleted by 2033.⁵

Understanding when and how to draw benefits is critical. Claiming early can reduce lifetime income, while delaying benefits past Full Retirement Age increases payments until age 70.

4. Your retirement portfolio may not last

The average retiree spends nearly two decades in retirement. A 65-year-old man is expected to live to age 84, while a woman may live to age 87.⁶

Healthcare is one of the largest expenses. A 65-year-old may need approximately $172,500 to cover healthcare costs alone.⁷ As a result, 44% of Americans worry their savings won’t last.⁸

5. Your standard of living will likely change

Many retirees underestimate expenses. Twenty-seven percent say they didn’t expect retirement costs to be so high.⁹

6. Retirement may impact your health

Forty-seven percent of retirees say they expected to be healthier in retirement.¹⁰ Leaving a long-term career can impact mental and physical well-being.

More than one-third say they didn’t expect to miss their career or feel bored.¹¹ Staying physically and mentally active is essential for emotional health.¹²

Physical activity supports brain health and reduces anxiety and depression, while mental engagement may slow cognitive decline.^13,14

7. Tradeoffs exist with retirement age and healthcare

Medicare begins at age 65, and few employers offer retiree health coverage. Retiring early may require continued work for benefits.

If you retire before Full Retirement Age and earn income, Social Security deducts $1 for every $2 earned above $23,400 (2025 limit).¹⁵

8. More people are working during retirement

Nearly one in five Americans aged 65+ were still working in 2023, and 62% worked full time.¹⁶ Unexpected work can impact emotional health.¹⁷

9. Living situations vary in retirement

Fifty-nine percent of people aged 65+ live with a spouse or partner.¹⁸ Many also care for family members.

More than one million grandparents aged 60+ are responsible for grandchildren living with them.¹⁹

Retirement is a goal for many, but preparation takes work. Everyone’s situation is different. Reach out to me, and I can help create a retirement plan that works for you.

References

1. Statista – Share of U.S. population aged 65+:
https://www.statista.com/statistics/457822/share-of-old-age-population-in-the-total-us-population/

2. ACL – Profile of Older Americans 2023:
https://acl.gov/sites/default/files/Profile%20of%20OA/ACL_ProfileOlderAmericans2023_508.pdf

3. Guardian – 14th Annual Workplace Benefits Study, 2025

4. SSA – Social Security Basic Facts:
https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

5. NPR – Social Security Trust Fund Projection:
https://www.npr.org/2023/03/31/1167378958/social-security-medicare-entitlement-programs-budget

6. SSA – Life Expectancy Calculator:
https://www.ssa.gov/OACT/population/longevity.html

7. Fidelity – Rising Healthcare Costs:
https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs

13. CDC – Physical Activity & Brain Health:
https://www.cdc.gov/physical-activity/features/boost-brain-health.html

14. AARP – Brain Healthy Lifestyle:
https://stayingsharp.aarp.org/about/brain-health/brain-healthy-lifestyle/

15. SSA – How Work Affects Benefits:
https://www.ssa.gov/pubs/EN-05-10069.pdf

16. Pew Research – Older Workers:
https://www.pewresearch.org/social-trends/2023/12/14/older-workers-are-growing-in-number-and-earning-higher-wages/

Guardian, its subsidiaries, agents, and employees do not provide tax, legal, financial, or accounting advice. Consult your professional advisors regarding your individual situation.

8467830.1 Exp. 10/27  *pre-approved content*