Transamerica Reveals Greatest Retirement Dreams and Fears

For middle-class Americans, the vision of an ideal retirement includes a blend of adventure, connection and personal fulfillment. However, this dream is often tempered by significant fears about financial security, health and the sustainability of essential programs like Social Security.

According to 2023 data cited in Transamerica’s “The Retirement Outlook of the American Middle Class,” the top five retirement dreams for workers making between $50,000 and $199,999 include traveling, spending more time with family and friends, pursuing hobbies, volunteer work and caring for grandchildren.

The annual report covered a variety of lifestyle and financial responses from more than 10,000 adults and was compiled by the Transamerica Center For Retirement Studies, led by CEO and President Catherine Collinson.

Travel is the most popular aspiration for Americans, with 67% of respondents wanting to explore new places or visit family members across the U.S. Among respondents, 58% reported looking forward to strengthening relationships with their loved ones, while 51% said they hope to pursue hobbies they may have set aside during their working years. Additionally, nearly one-quarter of middle-class Americans said they plan to engage in volunteer activities, and 20% reported looking forward to playing an active role in their grandchildren’s lives.

Notably, one in four middle-class individuals wanted to engage in some form of paid work during retirement. Such opportunities include starting a business, pursuing an encore career or continuing in their current field. Those with a household income between $100,000 and $199,999 were generally more likely to express these aspirations, compared with those earning between $50,000 and $99,999.

On the flip side, retirement dreams are often overshadowed by significant fears about the future. The five most common retirement fears for middle-class Americans included outliving savings and investments (40%), declining health that requires long-term care (40%), the reduction or elimination of Social Security benefits (39%), cognitive decline (33%) and the financial burden of long-term care (32%).

The potential reduction or cessation of Social Security benefits is a looming fear, especially for those with lower incomes. Mental health issues, particularly those related to aging, are also a major concern, especially among those with higher incomes.

Among participants, those with a household income ranging from $50,000 through $99,999 were more likely than their higher-earning counterparts to report fear of the reduction or elimination of Social Security. Conversely, individuals with a household income of $100,000 to $199,999 reported more concern about cognitive decline than those with lower incomes. Additionally, 24% of individuals with a household income ranging from $50,000 through $99,999 cited the lack of affordable housing as a significant retirement fear, compared with  19% of those earning $100,000 through $199,999.

One in three middle-class individuals (34%) reported relying on a professional financial adviser. Those with household incomes ranging from $100,000 to $199,999 were more likely to seek professional advice than those earning between $50,000 and $99,999 (40% vs. 27%).

The Transamerica study results were based on a 25-minute online survey conducted in the U.S. from September 14 through October 23, 2023, among a nationally representative sample of 10,002 adults. The sample included 5,726 respondents with household incomes ranging from $50,000 through $199,999. All respondents were U.S. residents aged 18 and older.