When thinking about retirement, the focus is often on saving a certain amount of money. But retirement is about much more than a number. Money can help give you choices and opportunities, whether that means maintaining your health, spending time with family and friends, traveling, pursuing hobbies, or simply feeling financially secure. Understanding how money supports your well-being can help you prepare for a longer retirement.
How money affects more than your finances
Money and well-being are closely connected. Research shows that finances can influence several areas of life as you age.1
Your health
Financial stress can take a toll on both your mental and physical health. If money is tight, some people may delay medical care or skip necessary prescriptions due to cost concerns. Over time, those decisions can affect long-term health and quality of life.
Tip: Create a realistic budget and learn more about potential healthcare expenses in retirement. Small steps today can help reduce stress and make it easier to manage unexpected expenses later.
Your social connections
Staying connected with family, friends, and your community can play a big role in your overall well-being during retirement. But financial limitations can sometimes make it harder to participate in activities and experiences you enjoy. Research found that many people worry about having enough money to stay socially engaged as they age.1
Tip: When planning for retirement, include room in your budget for the activities and experiences that are meaningful to you.
Taking control starts with education
Many people struggle with concepts such as investing, inflation, and diversification. Building your financial knowledge can help you make informed decisions about your future. Take advantage of educational resources, planning tools, and financial guidance offered by your company or retirement plan to help you feel more confident about your future.
Four steps to help you prepare for a longer retirement
Living longer can be a gift, but it also creates planning challenges. Here are four practical steps you can take now.
1. Make saving automatic
One of the easiest ways to grow your account balance is to make it happen automatically. If possible, increase your contribution rate when you get a raise or pay off debt. Even small increases can make a difference over the long term.
2. Think beyond money
Money’s important, but it’s just one part of retirement planning. Consider other factors that may affect your quality of life, including healthcare, housing, transportation, and social connections. Taking a broader view can help you build a more realistic picture of retirement and the costs that may come with it.
3. Keep learning
Financial confidence doesn't happen overnight. The more you understand about budgeting, investing, retirement income, and inflation, the better prepared you may feel to make decisions along the way. Use educational resources, webinars, calculators, and planning tools offered through your retirement plan or financial professional. These resources can help you connect today’s financial choices with your long-term retirement goals.
4. Plan for life, not just retirement
A successful retirement plan is about more than reaching a savings target. Think about what you want your retirement to look like. Where do you want to live? How do you want to spend your time? Understanding what matters most can help you estimate the resources you'll need and stay motivated to save.
The bottom line
Money isn't the only goal when you’re thinking about retirement—but it's an important tool that can help support the life you want to live. Whether it's maintaining your health, staying connected with others, pursuing your interests, or feeling financially secure, your retirement savings can help create opportunities throughout a longer life. By saving consistently, continuing to learn, and planning for all areas of retirement, you can take steps today that may help you enjoy a longer, healthier, and better tomorrow.
Discover our guide to thriving in retirement
1 The Longevity Preparedness Index was developed in collaboration with MIT AgeLab and funded by John Hancock Life Insurance Company (U.S.A.). While financial support was provided for the research, it did not influence the findings, methodology, or conclusions. Data for the Longevity Preparedness Index were collected by NORC at the University of Chicago from their AmeriSpeak Panel, a probability-based panel designed to be representative of the U.S. household population. Surveys were conducted online and by phone in English between May 14 and June 5, 2025; median survey completion time was approximately 25 minutes. The final sample comprised 1,307 Americans, aged 18 and up, with oversamples of non-Hispanic Black panelists, Hispanic panelists, and non-Hispanic Asian American and Pacific Islander panelists to ensure adequate sample size for subgroup analysis. During analysis, survey responses were weighted to represent the U.S. population. The overall LPI is composed of eight domains. Each domain captures positive behaviors toward longevity preparedness and awareness of the importance of a domain. Domain scores are each calculated independently and can range from 0 (not at all prepared for longevity) to 100 (completely prepared for longevity). All eight domain scores are averaged to calculate an overall LPI score.
