Summary
This study explores the relationship between retirement satisfaction and both health and wealth by analyzing respondents' household assets, self-reported health ratings, and retirement satisfaction ratings. Additionally, it seeks to identify specific demographic groups at risk of experiencing dissatisfaction in retirement by examining factors such as guaranteed income, risk-taking behavior, and racial background among survey respondents. The analysis is based on survey data collected in the 2020 Health and Retirement Study (HRS) and focuses on retired individuals ages 55–80. Below are the key findings.
- Individuals in higher household-asset brackets were more likely to report being very satisfied with their retirement. For example, 73 percent of those with $500,000 or more in assets expressed high satisfaction, compared with 33 percent of those with less than $25,000 in assets.
- Individuals in the self-reported healthiest group were more likely to be very satisfied with their retirement. For example, 70 percent of those in the “excellent – very good” health group reported being very satisfied, compared with 28 percent of those in the “fair – poor” health group.
- Individuals in the wealthier groups were also more likely to be healthier. For instance, 56 percent of individuals in households with $500,000 or more in assets reported being in excellent to very good health, compared with only 25 percent of individuals in households with less than $25,000 in assets.
- When comparing individuals from the same wealth group, those in better health were more likely to be very satisfied with their retirement compared with those in poor health. Among people with the same health ratings, those with higher household assets were also more likely to be very satisfied with their retirement. This shows that both good health and wealth have a positive impact on retirement satisfaction. For example, 78 percent of those in excellent to very good health with assets of $500,000 or more reported being very satisfied with their retirement, compared with 55 percent of those in fair to poor health with the same level of assets. Similarly, 55 percent of those with $500,000 or more in assets and fair to poor health reported very high satisfaction with retirement, compared with only 20 percent of those with less than $25,000 in assets and the same health rating.
This analysis indicates a strong correlation between health, wealth, and retirement satisfaction. Individuals with better health were more likely to be satisfied with their retirement, even when controlling for wealth. Factors such as preretirement planning, guaranteed income, and racial background can also influence retirement satisfaction. When preparing for retirement, retirement income strategies and ways to maintain good health should be considered.