"Inflation appears to be a major driver of the misalignment between expectations and reality, a double-edged sword that undoubtedly increases actual spending but also reduces spending, likely out of a desire to protect future purchasing power," said Bridget Bearden, research and development strategist, EBRI, in a press release.

Retirees' rating of their satisfaction in retirement dipped from 7.4 to 7.0 from 2020 to 2022 and their rating of their alignment of the reality of retirement with their expectations for it dropped from 6.8 to 6.4, according to the 2022 Spending in Retirement Survey: Understanding the Pandemic's Impact.

Employees with low financial knowledge

Among the retiree segments reporting lower senses of well-being were those with low financial knowledge. Many of those heading into retirement do not understand a variety of income strategies frequently used by retirees, according to the survey. For instance, 31% of respondents with tax-deferred savings accounts said they were not taking required minimum distributions from those accounts or were not sure if they were. In addition, only 57% of respondents were aware of annuities, while just 48% were aware of an emphasis on interest and dividends from an investment portfolio as an income strategy.

Related: 80% of employees are unprepared for retirement: Employers should do more

Of those who were aware of these strategies, the source they cited most for their knowledge was a financial advisor (26%). The survey helps illuminate key sources of financial education for those preparing for retirement and for those who are already retired. The most common information sources cited about the transition to retirement were a personal financial advisor (30%), online resources and research (24%) and a prior employer (23%). Another 14% cited a representative from their workplace retirement plan provider. Of the 73% of retirees with access to the stock market, less than half follow it even occasionally (26% follow the market with high or moderate frequency and 20% follow it occasionally).

"Having a spending plan before transitioning to retirement is important in retirement well-being," said Jason Fichtner, senior fellow, Alliance for Lifetime Income & Retirement Income Institute, in the press release. "This study underscores how expanding availability of professional financial help and improving awareness of protected income options contribute to comprehensive spending plans for retirement and can improve retirement security."

Overall, 36% of retirees are currently working with a financial advice professional. That number is lower for unmarried retirees (28%), Hispanic retirees (27%) and Black retirees (17%). Household income also plays a major role. Forty-two percent of retirees with more than $100,000 in annual household income use a financial advisor, while just 17% of those with less than $30,000 in annual household income do.

Approximately 7 in 10 retirees say that they have at least three months of emergency savings. Social Security continues to play a crucial role in retirees' financial health, as approximately 70% of respondents said it served as a major source of income for them. More than half of retirees spend less than $2,000 per month and another third spend between $2,000 and $3,999 each month.

Retiree's primary financial focus

Retirees' primary financial focus appears to be on simply funding their retirement, as respondents said the most important features in a retirement plan are to provide access to money and to guarantee an income stream for life. Ranking of far less importance to retirees was providing money for an inheritance and offering an opportunity for growth.

Survey respondents indicate that many Americans are retiring earlier than expected – with 55% of respondents matching that description versus 40% retiring when they expected and just 4% retiring later than expected. Still, retirement does not necessarily mean the end of work – 32% of those surveyed said that they worked in some capacity after retiring from their primary career, citing the desire to make money for discretionary or emergency expenses and finding emotional reward in continuing to work.