The most successful retirees seem to have it all: not just financial security but also health, happiness and peace of mind.
How do they do it? Here are habits, approaches and characteristics that can help put you on track to success in retirement.
1. They’ve made end-of-life plans
Did you know that only 43% of retirees have designated someone they trust as their medical power of attorney (or medical proxy) in case they can’t make medical decisions for themselves? The rest of us who don’t have someone named are leaving our loved ones’ hands tied when it comes to carrying out our wishes if we can’t communicate.
Likewise, just 41% of retirees have a living will (or advance directive) telling family and health care providers what end-of-life care they do and don’t want.
And only 39% have assigned someone they trust to have financial power of attorney for them if (and only if) they can’t make financial decisions for themselves.
Caring for family and close friends means not requiring them to make difficult decisions without your guidance. Make such decisions for yourself now, while you are able.
If you’re unsure where to start, check out “8 Essential Legal Documents to Create Before It’s Too Late.”
2. They spend time with loved ones
Time spent with those you love is a solid way for people to find fulfillment in their later years, according to a MassMutual Retirement Happiness Study from 2024.
The study found that retirees who fill their calendars with social activities report more happiness:
“Retirees who are much happier in retirement are more likely to be filling their free time with multiple kinds of activities, including spending time with loved ones.”
3. They’ve planned ahead for health care costs
To sleep better at night in retirement, you’ll need a solid plan for meeting the high cost of health care.
Financial services company Fidelity says that someone who retired in 2025 at age 65 would need $172,500 in assets to cover their medical costs in retirement.
How can you plan for this big hit? A few proven tactics:
- Buy long-term care insurance and time the purchase so you don’t spend too much. Money Talks News founder Stacy Johnson discusses who can benefit from the purchase in “Should I Buy Long-Term Care Insurance?.”
- Amassing a fat health savings account before retiring is smart. You save the money tax-free while you’re working and spend it tax-free on medical costs in retirement. Find out more in “3 Ways a Health Savings Account Can Improve Your Finances.”
- Simply saving enough to cover health care costs in retirement is the most basic approach.
4. They spend less than they earn
Retirees typically have no choice but to learn to live on a fixed income. That can mean getting tough about being frugal.
Fortunately, at this stage, you’ve been around the block a few times by now. Experience can make it easier to rein in the impulse to spend.
Here’s help with planning and managing costs in retirement: “8 Essential Moves for Retiring Comfortably on Social Security Alone.”
5. They have a Social Security claiming strategy
Studies have shown Americans’ ignorance about basic aspects of Social Security — like when to claim it and how much they’ll receive — is pretty scary.
Squeezing the most possible from Social Security requires getting help or understanding basics about how the system works. When you claim your benefits often makes a big difference.
For help, read: “Don’t Claim Social Security Until You’ve Done These 7 Things.”
6. They have a plan to minimize taxes in retirement
Taxes often become more complex, not less so, for retirees.
You may have new types of income to report: Social Security, pension payments and retirement account withdrawals. These can be taxed differently than your familiar paycheck income.
One example: If your money is in a tax-deferred retirement plan, like a traditional 401(k) or IRA, you must withdraw a minimum amount each year (a required minimum distribution, or RMD) beginning the year you turn 73 to 75, depending on when you were born. Miss taking an RMD, and you can face a penalty.
These factors can increase or lower your tax bill, so planning matters. Get help if you’re unclear about any of it.
A financial advisor can help craft your strategy, taking taxable retirement income into account. When hiring advisors, be sure to learn if they have expertise in tax planning.
7. They exercise
One looming fear of aging is a loss of independence. We’ve all seen elders lose the ability to perform basic functions like eating, walking, dressing and bathing. They become reliant on others’ help.
Some of that may come with the territory, of course. But there’s a cheap, simple habit that helps seniors stay active and independent: exercise. It also helps us feel happier, think clearly and reduce bone and muscle loss that’s common with aging.
Seniors on limited incomes will be happy to know that exercise also drives down retirees’ spending on medical care. Even life insurance rates can be affected since maintaining a healthy weight may help keep premiums lower.
Learn more in “7 Overlooked Perks of Staying Active in Retirement.”
8. They keep learning
Continuing to learn well into old age has payoffs beyond acquiring new information. Among them is a better ability to stave off the onset of cognitive decline, according to the University of Washington’s Memory & Brain Wellness Center.
Other benefits of continuing to learn include social engagement as well as the personal satisfaction that comes from expanding one’s horizons.
Many colleges and universities invite seniors to audit classes tuition-free, which could even lead to a college degree. You will find a few in “9 Colleges That Offer Free Tuition for Seniors.”
9. They adapt to change
You’ve surely heard some version of the saying (widely attributed to film legend Bette Davis), “Getting old ain’t for sissies.” It’s true. Retirement is a life stage when losses — of status, income, friends, family, a spouse or physical or cognitive ability, to name just a few — are all but guaranteed.
How to endure and enjoy despite that? Resilience — the ability to recover from difficulties — is key. One part of that is the willingness to adapt to change.
Successful retirees typically dust themselves off and try a new approach after hitting one of the obstacles that inevitably arise with aging.
10. They are generous
The slower pace of life in retirement often gives retirees a chance to look deeper and find meaning. Helping others by sharing their time or money brings tremendous fulfillment, many retirees learn.
Being generous is a source of purpose and fulfillment for 40% of retirees and 31% of pre-retirees, according to an Edward Jones survey.
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