In my most recent article, I wrote about Why 28% of Retirees Are Depressed.
Shortly after publishing that article, I received an e-mail from a reader named Jeff. His points were valid and gave me pause, so today I am addressing his comments with a “Part 2” on the topic, as he suggested.
- Part 1: Why 28% of Retirees Are Depressed
- Part 2: Why 72% of Retirees Are Happy
Jeff, I trust you approve of the positive spin. Wink.
More importantly, we’re going to look into the differences between the two camps. What is it about the 72% of retirees who are happy vs. the 28% who are depressed? What should you think about as you plan for retirement to increase your odds of falling into the “Happy Camp?”
Today, I’m sharing the 9 Traits I’ve discovered that are unique to happy retirees.
Thanks to Jeff for suggesting today’s post. If you’re planning for retirement, try to apply as many of the traits as possible to your retirement planning. The effort will reduce your risk of depression and increase your odds of a happy retirement.
These 9 traits differentiate the 72% of retirees who are happy from the 28% who are depressed. Click To Tweet
Why 72% of Retirees Are Happy
Since Jeff’s e-mail was the genesis of today’s post, it seems appropriate to start by sharing the full content:
When I write I don’t worry about “framing” or “messaging.” I try to focus on the facts. The reality is that 28% of retirees ARE depressed (much higher than the ~10% of the population at large that are depressed), and it’s something we don’t talk about often enough. Of course, that’s a negative “frame,” but it’s honest and was the focus of Post 1 in this series.
That said, I realized Jeff had some valid points and decided to write a second post focused on the 72% of happy retirees. My motive isn’t around “framing” a more “positive” message, but rather an attempt to determine some facts. Jeff’s next-to-last sentence is what drove me to write today’s post. “Let’s see why they’re satisfied and how to emulate them.”
Challenge accepted.
What if we can identify the difference between the two groups, and use the findings to help the reader improve their odds of being happy retirees?
What Percentage of Retirees Are Happy?
While it’s hard to determine exactly how many retirees are happy, using the 72% inverse of the 28% who are depressed may actually be pretty accurate. Following is a relevant quote I found in this article from New Retirement (citing Age Wave/Merril Lynch research), bold added by me:
- Only 51% of 25–34-year-olds say that they often feel happy compared to 76% of people ages 65–74
- Only 47% of youngsters say that they often feel content, while 71% of those retired report contentment.
Bottom Line: For the sake of this article, assuming 72% of retirees are happy is a reasonable position. The fact that it’s the inverse of the 28% who are depressed is not merely a coincidence but appears to be supported based on my review of available data.
What’s Different About Happy vs. Depressed Retirees?
In writing today’s article, I have attempted to differentiate between the two groups (Depressed vs. Happy) to see what we can learn. I conducted online research on happiness in retirees and have compiled my findings into the following 9 traits (3 financial and 6 non-financial) that are common among happy retirees.
3 Financial Traits of Happy Retirees
It’s worth noting these 3 financial traits identified by Wes Moss in his book, “What the Happiest Retirees Know: 10 Habits for a Healthy, Secure, and Joyful Life.” (Amazon Affiliate link, I’ll get a small commission at no charge to you if you order). I’ve not read it yet, but this article on Fortune provides a good summary. Summarizing from that article:
3 Financial Traits of Happy Retirees:
- Having at least $500,000 in liquid assets.
- Having your mortgage paid off.
- Having multiple streams of income.
6 Non-Financial Traits of Happy Retirees
As I’ve researched the differences between Happy vs. Depressed retirees, I’ve found there are several critical non-financial traits to consider. Some of these factors have a higher correlation to happiness than financial wealth and are worth considering as you seek to achieve happiness in retirement.
1. Curiosity
Wes Moss highlights several important non-financial traits of the happiest retirees, starting with curiosity. Quoting from the Fortune article cited above:
“We hear curiosity killed the cat. A lack of curiosity kills the happy retiree, plain and simple.” Wes Moss
Moss cites curiosity as a key driver for happiness in retirement, with the happiest retirees having an average of 3.6 core pursuits (most of which were driven by pursuing curiosity). By comparison, the unhappiest retirees have an average of only 1.9 core pursuits.
2. Purpose
As I read Moss’ findings on curiosity, I couldn’t help but see the similarity between his findings and my consistent advice to pursue your curiosity as a means of finding your purpose. I’ve become convinced that Purpose matters, but what does the research say? Following is a quote I found in this article that highlights the importance of Purpose, and its relevance between Happy vs. Depressed retirees:
“97% of retirees with a strong sense of purpose were generally happy, compared with 76% without that sense.”
3. Social Connections
As I was doing my research for this post, the work of Wes Moss appeared frequently in my searches. In this article from The Street, the author cites Moss as stating:
“For retirees who are not married, they are 4.5 times more likely to be unhappy.” Wes Moss
To offset the increased risks if you’re not married, Moss encourages retirees to have strong support networks, stay active and socially engaged. His research also highlights the reality that “someone who has been divorced and remarried one time does not have a lower chance of happiness.” Moss also cites the fact that the happiest retirees have an average of 3.6 close friends, compared to only 2.6 close friends for unhappy retirees. Clearly, relationships are a critical element of happiness in retirement. In fact, the article states…
“…the number of friends a retiree has is more correlated to happiness than the amount of money they have.”
In a related field, Moss found that retirees who go to church on a weekly basis are 1.5 times more likely to be happy than other retirees. Those who volunteer also experience a higher chance of happiness.
In conclusion, these three key areas are worthy of your focus as you work to increase your chances of a happy retirement:
- Building Relationships
- Spirituality
- Serving Others
4. Retiring At Your Planned Time
Research from Boston College concludes that both a) timing and reason for retirement and b) personal health have a higher correlation to happiness than financial well-being does.
As pointed out in Part I of this series, being forced into retirement before you’re ready significantly increases your odds of experiencing depression. According to this article in Forbes, 56% of retirees retired earlier than they expected. Read that sentence again.
56%!
The Boston College study includes this important finding:
“If individuals say that they voluntarily retired, they express much higher levels of well-being compared to those who did not voluntarily retire. It is likely that if they retired before they had expected to, they may not have completed financial or psychological preparations for retirement, leading to lower wellbeing in retirement.”
While we’re often not in control of when we’re able to retire, it’s important to be realistic regarding your risk. The facts are consistent and I’ve highlighted in past posts the very real risk of being forced into retirement earlier than you’d prefer. Recognize your risk, and begin preparing now for a scenario where you’ll be forced into retirement earlier than you expect.
It’s best to be prepared early, just in case.
5. Personal Health
From the Boston College Study: “The second major factor is health. Unsurprisingly, those with poor health also
experience dramatically lower levels of well-being.” The importance of doing everything within our control (exercise) is a consistent theme when studying happy retirees.
I write about the importance of exercise frequently, and I continually expand my self-learning in this area. I’m currently reading an excellent book, “Outlive: The Science and Art of Longevity” by Peter Attia MD (Amazon Affiliate Link). It’s a fairly heavy read, but learning about the physiological realities of the benefits of exercise is motivating. There is nothing more important one can do to improve longevity than focus on consistent exercise, and it’s a trait more common among the happiest retirees. From The Street:
“…those retirees who take care of themselves in retirement and maintain a healthier lifestyle are generally happier than those who do not. Happy retirees are fans of what Moss calls the “ings.” These are low-cost forms of exercise such as walking, swimming, biking, and hiking.”
The following quote from this article is relevant:
Passive activities like watching television and staying at home were found to generate the lowest amount of happiness in a retirement study, while more active endeavors, like socializing, volunteering, walking, or exercising, were associated with the highest level of happiness.
If there’s one thing you take away from this article, it should be the importance of exercise when striving for happiness in retirement.
6. Planning For A Happy Retirement
Finally, a difference between Happy vs. Depressed retirees is the amount of planning they’ve invested into their retirements. Of the 4 Paths To Retirement, the happiest have proven to be the “Purposeful Pathfinders,” or those who have invested the most amount of time in planning for their retirements. Conversely, the “Regretful Strugglers” are the ones least enjoying retirement, and are likely the highest to suffer from depression.
Research has shown a correlation between the amount of time spent planning for retirement (both financial and non-financial aspects) and the resulting success of the transition into retirement. If you want to increase your odds of a happy retirement, take the time to expand your focus beyond the “money stuff.” Finding ways to replace those non-financial rewards of work (social connections, sense of identity, structure, purpose, etc) is some of the most important work you’ll do as you plan for retirement.
The following article from INC summarizes it nicely:
“…few people realize that planning for retirement contentment is as important as planning for economic health.”
If you’d like to read additional articles I’ve written on how to achieve a successful retirement, the following are some of my most-read posts on the topic (or, read my book, Keys To A Successful Retirement):
Further Reading:
- 7 Secrets To A Great Retirement
- 20 Ways To Be Happier In Life
- Wise Advice For A Successful Retirement
- How To Get In Shape For Retirement
Conclusion
The 9 traits I’ve discovered that differentiate happy vs. depressed retirees are worth considering as you work toward your ideal retirement. To summarize:
- Having at least $500,000 in liquid assets.
- Having your mortgage paid off.
- Having multiple streams of income.
- Curiosity
- Purpose
- Social Connections
- Retirement Timing & Reason
- Personal Health
- Planning For A Happy Retirement
Apply as many as possible into your life. If you’re struggling through the “Messy Middle,” have confidence in the fact that the happiest retirees are those who have been retired for more than two years. Focus on your mindset, and seek out those things that bring you joy in life. Happiness is more within your control than you realize, especially in retirement.
If you do nothing else, go outside and walk a few miles, and think about what you just read.
You’ll be happy you did.
Your Turn: Are you happy in retirement? If so, why? What advice would you give those who are struggling to find happiness in retirement? Let’s chat…
Well said Fritz. I can relate to all nine. Thanks for sharing
Another great article Fritz! I agree with all of the findings. Health is wealth. Purpose is why we want to raise out of bed to start our day. Being on this planet….why were we put here?? Some never really ponder this.
Giving of ourselves makes others happy/better, but what it does to your innards multiplies in your “happiness factor”. Money sure becomes less important the longer one is retired. I am going on close to 8 years now. A wonderful chapter of my life!
God speed to you and Jackie, Steve
“Money sure becomes less important the longer one is retired.”
I couldn’t agree more, Steve. It’s been one of my biggest surprises on my retirement journey. The “other stuff” matters so, so much more, but it’s hard to understand until you actually experience retirement.
Fritz,
Thanks for this touch point, much appreciated. I’ve been retired just over a year now, and this is a handy list to check my progress and see if any course corrections are needed. Most of my attention this first year has been financially-focused (all good there); it’s clear to me that I need to spend more time on those non-financial areas.
I’m pleased to hear this article raised your awareness of the importance of focusing on the non-financial areas, Tom. If you’re like most of us, it’s a natural transition as your retirement matures.
The last thing you want to experience is waking up every day and thinking its Saturday.
Fair point, though I’d argue the last thing I want to experience is a week that starts with a Monday. Wink.
Garbage pick-up days help me keep track 😊.
I’ve been retired for 11years. Having a routine, while no where near as demanding as when I was working, is terrific. It seems no matter what your routine consists of, it’s grounding. Much like Jeff, I exercise regularly, volunteer and spend time with family and friends. I’m very glad to find myself in the 72% group.
I’d never remember garbage pick-up day if it weren’t for that helpful reminder from my friend, Alexa. Tough to keep the days straight as the years of retirement go by. I’m with you on the exercising – just finished a 1+ hour swim in my favorite Lake Blue Ridge! 100% in the “Happy Camp” here, love my retired life!
I disagree. For me, Saturday was always the perfect day for living–enough time to do what needs doing, and to enjoy after the chores are done. I love having every day Saturday.
I agree! While Saturdays are great, an endless amount is mind-numbing! Retirement is life and, for me, I need the discipline and purposefulness of a day of the week mindset to create, develop, learn, take action, etc.
Fritz, I enjoyed this piece very much, so well done, the same with your other piece about depressed retirees. I for one didn’t view it as too negative to be open about the struggles and pitfalls retirement can bring — but giving awareness and support. Thanks for another great piece.
Thanks for your kind words, Judi. I hope Jeff reads your comment. Wink.
Thank you for that great response to my email! I’m about to retire at 56 and am doing (and planning) all those things you mentioned. We’re fortunately financially ready and I’m already thinking about freelancing a bit (I love writing and advertising which was my 30 year career), taking classes at local colleges, spending more time with friends, and continuing to exercise (I’m a bit of a health and exercise nut already). I will likely do some volunteering which my wife does a lot, and am toying with getting a tattoo to mark the beginning of retirement (that was not on your list). Thanks again for that very valuable article! Jeff
And thank you for planting the seed. For the record, I think The Retirement Manifesto would be a great logo for that tattoo. Send me a pic once it’s done. 😉
As for exercising, we’re aligned there. I’m doing a podcast interview in 6 minutes, then off for a 1+ hour swim in the lake…
Dear Fritz,
Thanks for today’s post.
After struggling for one year or so, now I can say that I am a happy retiree.
The most important thing I’ve learned in these first two years as a retiree is that life in retirement changes, and evolves with us. I learned to move with it, speeding up or slowing down the pace. The unexpected freedom, so difficult to manage in the early days, gave way to a real inner revolution. Finding my purpose was really crucial in this process, learning from others, cultivating curiosity and remaining agile and flexible are other important ingredients .
My personal piece of advice (I was a workaholic fully focused on my profession) : pay attention, look around and focus on the beauty of the world and the “moral beauty” of others. If I may, I would suggest reading Dr. Kelntner’s book: Awe: The New Science of Everyday Wonder and How It Can Transform Your Life.
Hope that this can be of help.
Thanks again
Michaela, thanks for the reading recommendation – adding it to my “Want to read” list! Also, I love your phrase “inner revolution.” That resonates with me. Thanks for stopping by.
It sounds exactly like my playbook. I know I’m doing life well if I’m doing it like you, Fritz! Between chairing nonprofit boards and mentoring students and church activities there is even more purpose in my retirement than when I was working full time. And much more time for the active sports and hobbies my wife and I share. We recently added cycling to our list of fun hobbies and are looking forward to biking trails all over the country.Today our thirty some odd pickleballers will meet for recreational play, tomorrow is tennis and we’ve got four trips for this year in the planning stages. Life is better than good, and it’s largely because we are checking those nine boxes.
We do seem to have a lot in common, Steve. I hope your biking trail exploration includes a leg in North Georgia, would be good to meet you after our many exchanges. Life is better than good, indeed!
Fritz,
It’s interesting how these principles need to start way before retirement. They apply both in our youth and what I call the “4th” quarter. Solid relationships are key. Especially, when you feel yourself emotionally being pulled out of the Happy camp. A few solid friends are critical. Purpose that is outwardly focused to your family and others is key. I’m just hitting 2 years into retirement. It was a huge struggle for me at first because I was forced into it early. You were one of the first resources I benefited from in the early stages. I felt very alone and was grasping to understand all the crazy emotions I was feeling and trying to figured it all out since my journey was not voluntary. I’ll stop there so I don’t keep rambling. Keep the articles coming. Thanks for your important purpose. It helps many.
“You were one of the first resources I benefited from in the early stages.”
Glad to hear my writing helped you negotiate that “Messy Middle,” Todd. It’s rewarding to hear from those who benefit from my words. Thanks for reiterating the importance of relationships and Purpose, I agree that both should be a focus well before retirement, though the ability to spend more time with an “outward focus” is one of the most rewarding things about retirement. Best of luck on your journey.
Fritz~ Another GREAT article putting the positive spin on retirement. I love the list, but would have to add to your list. Having a strong personal faith and trust in GOD!!! Marc
Amen to that one, Marc. Eternity matters more than anything we face here on earth. Thanks for the important reminder.
Having Multiple Streams of Income
Would Social Security count as 1 item in the stream? Or is it multiple in addition to social security?
Social Security would be 1 item. The happiest retirees have several more (perhaps a side hustle or a pension, would also think you could include dividends on the list).
Great summary article. I would add that the Planning part should not end at retirement. You certainly have to plan FOR retiring to have a good start, but you need to continue to find things that challenge you and those challenges require planning. The planning and problem solving process provides a lot of happiness because it becomes a continuous source of feeling accomplished. It is similar to finding your purpose, but I think of it as the “game” that you are choosing to play in retirement. It may be that I have too many years of corporate planning in my background, but “Purpose” as a label sounds formal and rigid. It implies mastery. That’s why I like calling it a game to play. Games only require trying to win and have a good time while doing it. I’ve read some blog writers who appear to be playing the game of “how little can I spend in retirement and still enjoy myself”. These are people who obviously don’t need to live that way, but have chosen their game in order to have something to focus on. Living that way doesn’t translate well into a Purpose Statement, but it is a fun game to play. It also requires many decision points and lots of planning. My theory is that it is the desire to feel like you are accomplishing something even if it doesn’t matter to others.
“…but you need to continue to find things that challenge you…”
100%, Darrell. Like the poker hand analogy I’ve used in the past, retirement is all about picking up and putting down cards. Yes, that sometimes requires planning, but more important is the curiosity required to pick up another card that interests you.
As for “Game” vs. “Purpose”…you’re going to love my next post. Here’s a tease (don’t tell anyone), the working title is “Life In The Batter’s Box”. Stay tuned…
As always great thoughtful piece! We plan to relocate from the Northeast to a warmer more tax friendly area when retiring however it gives me great pause. We are trying to approach as the great adventure but lots of logistics to consider. The happiness rules are challenging when I don’t know “where” retirement will be.
I’d encourage you to spend some extended time in your targeted area, use AirBnB to stay in a “real” house and get a sense of the various areas you’re considering. Part of the fun of retirement is deciding to live where YOU want to live, and not where your employer forces you to live. Savor the freedom, enjoy the quest!
Is the $500;000 per person so a couple should have $1M?
Good question, didn’t read his book so can’t say with certainty.
My husband retired one year ago this month. I am retiring in 93 working days (you can believe I am counting). We are both government workers with pensions and also have a significant amount of savings. This article resonated with me and I thank you for writing it. I have already dipped my toe into volunteering and I love it – can’t wait to do more. I also have four major travel trips scheduled for next year and we are also looking forward to that. The spirituality thing does not resonate with me due to some bad experiences in the past, but I realize that is a major source of connection that people use. I started building core friendships over the past 20 years and will continue to cultivate those.
Thank you for a positive article. I do appreciate the first article as well – it’s important to be aware of the adjustments that lie ahead.
93 days will fly by. Congratulations on your rapidly approaching “Starting Line,” kudo’s for getting an early start on volunteering and lining up some travel. Best of luck on this side of the line!
Great job at addressing the whole retirement pie Fritz and coming back with the happy folks. I too am reading Attia’s book. I discovered him randomly thru a couple Joe Rogan podcast. He’s an accomplished guy. I think the importance of that curiosity gene is so understated and so glad you highlighted it. I clearly inherited it from my Dad and appears I have passed that onto my kids. Keep up the great work !!!
That book’s gotten a lot of press. I found the first section (Metabolism) a bit thick, but it’s picked up speed since. I’m in the last section on Emotional Health. Debating whether or not to write a book review on it…
Good point about curiosity being inherited. I suspect that’s partly true, tho each of us can always cultivate the traits we most want in our lives. I, like you, have never had a problem being curious. It keeps life interesting.
I suspect it’s a not a clear binary: many retirees are just “OK” and there is a spectrum of happiness ranging from ecstasy to depression. It may also change from day to day, season to season, hour to hour. But the reminders are certainly helpful.
No doubt there’s a spectrum, John, and we all go through the roller coaster cycles of life. Valid points, thanks for adding to the discussion.
Thanks for this enlightening article, Fritz! I am about 3 years away from retirement, single and currently describe myself as happy, but your touchpoints made me realize I have a few things to work on.
Nice on Frtiz… you put curiosity at #1 and I’d agree. If you’re not interested in exploring things in life then you’re doomed to the couch, TV, and poor health.
Doomed being the key word….
I’m 59, my wife is 58. Although we owned our townhouse free and clear last year, we were forced to move for health reasons and ended up with a mortgage ($130k). We have about $110k in retirement right now.
I don’t expect to have anywhere near 500k at retirement given our current income, though we are aiming to have the mortgage paid off.
James, you’re far from alone in being behind in your retirement journey. I’d encourage you to check out Catching Up To FI, it’s a podcast aimed at helping folks catch up. Good folks, here’s the link:
https://catchinguptofi.com/
Nice article Fritz! For me personally, number one (based on my own experience) is loving family, which brings so much joy and happiness no money can buy; though having ‘enough money/material’ (varies depending on one’s lifestyle), always helps! Of course, the key member of my family (my significant other) and the relationship we both built and maintained together over the years certainly contributed in many ways.
I’m with you on the importance of family. As a matter of fact, we’re heading to Alabama today to pick up our 4-year-old granddaughter. We’re bringing her home to our cabin in the mountains for a week – her first time doing “Grandparent Camp.” Looking forward to a great week!
Thank you, Fritz. Another exceptional article that guides and inspires. I have been retired almost 8 months and have a good grip on most of your top 9 points. I am focusing even more on fitness after reading Attia’s book, looking to expand my social network, and remaining curious to build out my purpose. This week I tried out “Mountain Biking”, after many years, and enjoyed the experience. Next week, we are heading off to a Backroads hiking adventure in Vancover and San Juan islands. I’ll get the opportunity to do several things I love: time with my wife, hiking, photography, eat good food, meet interesting people and spend time in nature.
It sounds like you’re doing well in your first 8 months, Bruce. Interesting how reading a book like Attia’s can be so motivating to make lifestyle changes, isn’t it. Enjoy your time in the San Juan Islands, my wife and I love that area!
When I first retired I found one question from both friends and acquaintances troubling – “what are you going to be doing?” Usually followed by the statement “ I know you will be doing something great!”
My response was awkward even though I knew the question was not intended to elicit a serious response. But I was taken aback by the question. Because the truth was I was doing essentially- nothing of any great importance to anyone. I was really enjoying doing what most would consider nothing. But I was really enjoying it – but I found the innocent question unsettling- should be doing “something”. I even went to my wife and asked her if she was OK with me basically doing “nothing”
Long story short I finally came up with a response when asked the question- “I’m writing a book ( I’m not) “ the next question was “what’s it about?” Answer (with a straight face – “ Quantum Mechanics and the Existence of God” There has only ever been one person with a follow up question.
I’ve been retired 10 years now ( retired at 60) and I’m still loving it
Questions: How do you define “core pursuits”? For example, is time spent with family/grandchildren considered a core pursuit?
Also, re: the $500k liquid assets: Is that the same for both married couples and single individuals?
Fritz, wonderfully written and timely article since I am on the Moselle River with Germany on one side and Luxembourg on the other. My wife and I have met a few lovely couples who are nearing retirement who have made their number but do not know what to do when they get there. I will share your website and that of Wes Moss with them. Auf Wiedershen.
Hi Fritz
Another great article. Like many, I was overly focused on the financial side of planning for retirement, overlooking the other side of the equation. Your articles have allowed my wife and I to have some very good conversations about the non-financial side of retirement. This has been very helpful to create more balance in our plan as we near our retirement
Thanks
Paul and Susan.
Fritz, Thanks for your most recent posts: 72% & 28%, reading both have given me food for thought. I am only 1 month in to retired life and as a public school teacher, I sometimes still think I’m on summer vacation!
I’ve been laser focused in preparing for a healthy life span physically and financially for the past 10 years so retiring was a most welcome choice. Still it is a daunting, exciting proposition to be so very time rich. I don’t have all the answers, it’s just life after all but I truly enjoy your writing and the comments of your readers.
Hi Fritz, I enjoyed reading this post and agree with most of it. I’d like to challenge you on this statement, though: ‘There is nothing more important one can do to improve longevity than focus on consistent exercise.’ In Marta Zaraska’s book, ‘Growing Young,’ she quotes research that shows strong support networks (i.e. social groups) lower mortality risk by about 45%, while exercise lowers it by about 23%.
I’m glad to see that both support networks and exercise are covered in your post. After focusing on my exercise for so long, I’m trying to combine exercise and social interaction to reap the larger benefits of being social. Zaraska’s book is a fascinating read that I strongly recommend.
Hi Fritz! You hit the nail on the head with this one. I agree 100%. As a Finance Exec I lived everyday by my voluminous TO DO lists with many meetings and deadlines. For 6 1/2 years in retirement I have continued making to do list for everyday farm life. Suddenly I have decided to I’m going to try to stop making the lists and I’m going to write down what I DID DO everyday instead. That will be a big change for me but I’m going to give it a try! Maybe I’ll be even happier 😄