3 habits shared by happy retirees—and why you should start doing them now
A financial planner who studies retirement happiness says money, meaningful pursuits and close friendships can all shape life after work.
TL;DR
- Happy retirement well-being depends on more than just savings; lifestyle factors are crucial.
- Saving diligently and investing early is recommended, with a target of at least $1 million in investable assets, or more based on lifestyle needs.
- The 4% rule can help estimate retirement savings targets, where withdrawing 4% annually (adjusted for inflation) is considered sustainable.
- Starting retirement savings early significantly reduces the annual amount needed due to compounding returns.
- Happy retirees often have five or more 'core pursuits' that provide purpose and fulfillment.
- Cultivating new interests and passions before retirement is essential for creating purpose post-work.
- Having five or more close friendships is a significant marker of retirement happiness, with a higher percentage of happy retirees reporting this.
- Maintaining and cultivating friendships early on is as important as financial saving for a happy retirement.
- These habits are described as lifelong and holistic, contributing to both financial well-being and an enjoyable retirement.