Making ends meet can be challenging even if you have a good job. But it gets even tougher after you retire.
Recently, the Transamerica Center for Retirement Studies published its 24th annual retirement survey of workers, which this year was titled “Retiree Life in the Post-Pandemic Economy.”
Transamerica asked more than 10,000 adults — including a subset of 2,404 retirees — to list their top financial priorities. Following are the retiree answers.
9. Contributing to an education fund (tie)
Respondents who said this is a financial priority right now: 7%
College is brutally expensive. And — as with retirement — the longer you wait to save, the steeper the climb.
If contributing to a child or grandchild’s college education is a top priority, now is the time to start saving. With any luck, maybe your loved one will choose one of the “15 Smart College Majors for Dependable, Great-Paying Jobs.”
9. Supporting grandchildren (tie)
Respondents who said this is a financial priority right now: 7%
Raising children can be challenging, and taking care of aging parents is sometimes heartbreaking. But supporting grandchildren is often a pure joy.
Some survey respondents said caring for grandchildren is a financial priority these days.
8. Supporting children
Respondents who said this is a financial priority right now: 9%
Even after children are grown, they sometimes need financial help — maybe even with paying for their own children’s needs.
Nearly 10% of retirees said helping their children financially is a top priority now.
7. Saving for a major purchase or life event
Respondents who said this is a financial priority right now: 17%
Whether you are buying a house or paying for a wedding, a major purchase usually requires months — or even years — of diligent saving. Today’s retirees know this as well as anyone, so they are saving now.
5. Creating an inheritance or financial legacy (tie)
Respondents who said this is a financial priority right now: 18%
At some point in life, making a buck gives way to leaving a legacy. Whether it is our children, grandchildren or favorite cause, most of us would like to ensure that some part of this world is better off after we go.
A good estate plan is essential to making such dreams come to fruition, so make sure you have critical documents in order sooner rather than later.
5. Paying health care expenses (tie)
Respondents who said this is a financial priority right now: 18%
Sometimes, it feels like the three certainties of life are death, taxes and ever-rising health care costs.
So, it’s no surprise to find that saving for health care expenses is a priority for many Americans. One of the best ways to prepare for future health care costs is to open a health savings account, if you are eligible. We detail the many benefits of HSAs in “21 Surprising Things You Can Pay for With an HSA.”
4. Saving for retirement
Respondents who said this is a financial priority right now: 24%
Americans are not the world’s greatest savers. After all, it’s easy to put off saving when steady paychecks are rolling in. But at some point — either because you want to or because you’re forced to — your days of working will end.
Will you have enough money saved to survive? Not if you don’t start saving well before retirement. To get started, check out “The 17 Best Retirement Investments to Achieve Your Financial Goals.”
3. Just getting by to cover basic living expenses
Respondents who said this is a financial priority right now: 29%
Anyone who looks at the bottom line on their grocery receipt knows inflation is making it harder to simply get by.
When prices soar, saving is never easy. But that doesn’t mean it’s impossible. If you are struggling to get by, cutting your costs can make a world of difference.
2. Building emergency savings
Respondents who said this is a financial priority right now: 31%
You never know when a rainy day will arrive. If you didn’t understand that before the coronavirus pandemic and subsequent inflation, you certainly realize it now.
The time to prepare for an emergency is long before it happens, and building a rainy-day fund is an essential part of anyone’s financial peace of mind. If you don’t already have a financial safety net, check out “9 Tips for Starting an Emergency Fund Today.”
1. Paying off debt
Respondents who said this is a financial priority right now: 45%
If there is one cardinal rule of good financial behavior, it is this: Avoid unnecessary debt.
Some people manage to steer clear of red ink their entire lives. But for most of us, falling into debt is a rite of passage. Once we realize how much debt hurts us, we often are desperate to climb out of the financial hole.
Although 45% of people overall said paying off debt is a top financial priority, the type of debt they want to tackle differs. Retirees named the following four types of debts:
- Credit card debt: 30%
- Mortgage: 20%
- Other consumer debt: 10%
- Student loans: 3%
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