This week, I’m using data from the Health and Retirement Study to talk about what makes retirees happy and what detracts from enjoyment. This study was begun in 1994 and tracked 20,000 retirees through 2018.*
The conclusions were that there are three core pillars of retirement happiness: Money (obviously), Health, and Relationship with Peers and Community.
- Money: Having more money makes you happier (or maybe just more secure feeling which to many people equals happiness). The more money they had, the happier the participants were up to $4,000,000, at which point the more-happiness-more-money relationship tapered off. More on how to have $4,000,000 at retirement in next week’s blog.
- Health: Feels like an easy conclusion. If you don’t feel good physically, it’s hard to enjoy life to the fullest. So, invest in your body and mind now. Really, get out there and walk, buy a piece of exercise equipment you will use, or sign up for a fun class. Buy groceries rather than Taco Bell.
- Relationship with Peers and Community: This one is the reason I’m writing the blog. Notice it doesn’t say “Time spent with my adult kids.” It’s the engagement with their spiritual community, friends met while engaging in hobbies, and feeling you are fulfilling some purpose.
Speaking of adult kids, it’s not the time spent WITH the kids that creates the most happiness. It’s the time without them. One of the biggest problems for retirees is children who haven’t launched from the home. Getting kids financially independent by age 30 is a huge contributor to the happiness of their parents.
You’ve heard it before and I’ll say it again: Start building your peer relationships, engaging in non-work interests, take care of your body, and for Goodness’ sake, setting expectations for your kids now. Don’t wait until you have more time to do these things. Retiring with nothing to do can lead to depression. Make time while you are working to enjoy your life.
*Source: Financial Advisor Magazine, November 2021
