In this episode I review an older article (2005) from Keith Bender and Natalia Jivan called “What Makes Retirees Happy”.
Now one might question why I’m using a nearly 20 year old article to discuss. Good question. The answer is because this was another seminal article, at least for me, as I began my career painting the picture of what works for retirees. And folks, it’s not wealth that makes people happy. Not by any stretch.
Yes, wealth can help. But there becomes a negative utility in having more wealth. That is a fancy economics term meaning the MORE you have of something the less you value it.
What do retirees value most? It’s having the choice to retire as opposed to being forced to. Also, having a guaranteed flow of income from pensions and annuities, not just Social Security, combined with an asset that can grow to provide a potential higher standard of living.
Lastly, it’s the ability to spend time with one’s spouse, or close friends.
Notice nothing states HOW much income one needs to be happy. In fact, there is no correlation with higher income levels and retirement well-being.
But having loved ones, guaranteed income to cover expenses and choices. You get those three things, you’re going to be good to go.
Listen to learn more.