Happy retire blog2

How Much Money Do You Need to Ensure a Happy Retirement?

01/18/2023 Written by: Kristine Simmons

This question takes for granted the huge assumption that there is an amount of money guaranteed to make you happy in your post-work years. Having enough money is important, but there's no magic total that will automatically bring happiness.

Steven Vernon, a Forbes contributor and author of Don't Go Broke in Retirement, is a former actuary. He's spent decades helping companies distill the risks associated with human behavior down to dollars and cents.

Vernon's biggest piece of advice, as you might guess from the title of his book, is don't run out of money. But as he explores the topic of planning for an enjoyable retirement, he finds that people must look beyond mere finances.2

"It turns out that happiness can be a complex goal," writes Vernon. In fact, it's not really the best word to describe a satisfying life. Psychologist Martin Seligman prefers words like "wellbeing" and "flourishing." He suggests that these concepts have five dimensions: positive emotions (such as pleasure), engagement, relationships, meaning, and accomplishment.

Vernon notes that much of the advertising around retirement focuses solely on the first dimension. "They often depict a smiling couple walking hand in hand on the beach at sunset," he writes. "They focus only on the 'vacation' part of retirement."  While retirement should include pleasurable experiences, living as if you're on a 30-year vacation soon can lead to dissatisfaction. It's an expectation that's impossible to sustain. Long-term wellbeing depends on having a fully rounded life.

Having the financial resources to meet your needs is important for a successful retirement. But money by itself won't make life fulfilling. Remember to consider and plan for the other key components you will need to thrive during your golden years.

1. http://go.pardot.com/e/91522/wex-beg-the-question/8nn2mw/1744565582?h=KIe17KTnNOjAyp8BVhggFjAgQ3IrkjhGy4LWts36lWY
2. http://go.pardot.com/e/91522/d-to-be-happy--sh-3e77349f6d8d/8nn2mz/1744565582?h=KIe17KTnNOjAyp8BVhggFjAgQ3IrkjhGy4LWts36lWY

Charitable Donation square edit
Charitable Giving
Wealth Management04/24/2024

When developing your estate plan, you can do well by doing good. Leaving money to charity rewards you in many ways. It gives you a sense of personal satisfaction and can save you money in estate...

Financial Plan square
Don’t Let Emotions Get in the Way of Your Financial Plan
Wealth Management04/03/2024

Taylor Tepper, a financial journalist for Forbes, writes that when the vast majority of us try to trade stocks for short term gain, we do a horrible job. "We sell them when we should buy," he says,...

60 40 allocation square
Three Reasons Why the 60/40 Allocation can be a Good Starting Point
Wealth Management03/13/2024

Many people have the misconception that the primary goal of investing is to make as much money as you can as fast as you can. Unfortunately, you can't just order up outsized returns like a delivery...