Retirement Happiness -- really interesting

[dude]

Pretty intriguing stuff (ignore the stupid headline, there's actually an interesting study at the heart of the article):

http://finance.yahoo.com/news/7-ways-to-retire-happy-192156194.html

[deborah]

We're happy retirees and we don't meet all the criteria. I think the study was a bit simplistic.

[Zelda01]

I think it gives a good message that people don't have to have excessive amounts to retire.  Hopefully this will prompt some people to start saving, who would otherwise throw up their arms in futility.

The amazon reviews look good.  I'll have to wait until my library gets the book :)

[Trudie]

While it's no secret that having more, rather than an optimal amount, of resources in retirement is NOT a key to happiness, I think what is interesting about this study is how perception shaped actions.  People who feel they have ENOUGH are content, less-stressed, and therefore not as likely to do crazy things with their money.  It's the striving for more that can kill you.

[dcheesi]

OK, so $500k is enough to feel "happy", while also spending around $4 month. So basically the average person is content with a 9-10% withdrawal rate? One wonders how their happiness evolves as their portfolio dwindles...

[slugline]

OK, so $500k is enough to feel "happy", while also spending around $4 month. So basically the average person is content with a 9-10% withdrawal rate? One wonders how their happiness evolves as their portfolio dwindles...

Article discusses retirement, and not necessarily early retirement, so. . .

"On average, the happiest retirees reported having between two and three different source of income — the most commonly cited income sources were Social Security, investment income, real estate income, a pension, and part-time work...."

[socaso]

My parents are very happily retired and I would say they check every box on this list. From what I have observed the "core pursuits" have contributed the most to their happiness. They are very involved in their church and some clubs and they have an absolutely massive garden every summer which takes a lot of planning and work and they very often do gardening projects with other retired couples they know. The things that keep them the busiest are free or inexpensive or have a good return on investment. Since their house is paid off and they live in an inexpensive area I bet they spend around $3k per month.

[arebelspy]

Wow, I really enjoyed that.  Obviously there are exceptions to every one, but reading about the general trends was very interesting.

Thanks for sharing!

[Dicey]

What amazes me is that the article appeared in Yahoo Finance. YF publishes more headline-grabbing skimming-the-surface-BS than anything that's remotely useful. And the comments are often worse, filled with egregious grammatical errors, political rants and whinypants complaints. Hopefully, this is a sign that things are looking up over there. Prob'ly not, but here's hoping ;-)p

[Letj]

What amazes me is that the article appeared in Yahoo Finance. YF publishes more headline-grabbing skimming-the-surface-BS than anything that's remotely useful. And the comments are often worse, filled with egregious grammatical errors, political rants and whinypants complaints. Hopefully, this is a sign that things are looking up over there. Prob'ly not, but here's hoping ;-)p

Lol. So true.

[Sdsailing]

The clear implication is that there is a causative link between the two, while presenting absolutely no evidence for causation.   Logic fail.

[taekvideo]

Apparently a Lexus is a "relatively modest" car.

[soccerluvof4]

3. Happy retirees pay off their mortgage early.

In his research, Moss found happy retirees were nearly four times more likely than unhappy retirees to be close to paying off their mortgage. More than one-third of happy retirees will have their mortgage paid off within eight years, compared to less than one-quarter of unhappy retirees. Nearly 30% of happy retirees said their mortgage payoff date is less than five years off, compared to just 5.6% of the unhappy sect. Any retiree who’s managed to pay off their mortgage debt should be thrilled — more seniors today are carrying mortgage debt in retirement than ever before.

“To me, this was kind of a real eye opener,” Moss says. “You hear all day long that there is no reason to pay off a mortgage early and you can make a great economic case for that. But my research shows the elimination of mortgage is really important, not just financially but also psychologically.”  Happy retirees weren’t all living in McMansions either — the average value of their homes was $355,000 – not far above the national average of $319,200. Unhappy retirees’ homes were worth $273,000 on average.




Would not see myself even wanting to retire with any mortgage period!! and the value of homes seem pretty high.



The Lexus over the BMW comparison I too found a bit foolish. Buy hey, different strokes for different folks!

[RetiredAt63]

I'm a happy retiree, I fit 1-6 but not 7.  My car is not a Lexus (2010 Mazda 3).  My mortgage will go way down when the matrimonial home is sold (I am separated and it is on the market).

Happy couples may be happy, but unhappy couples are still unhappy - sometimes separation/divorce is the way to go, even if financially it is not the greatest.  My life style is much more modest now, but I am incredibly happy - sometimes when I am driving to an activity (hey, I am in the country, nothing is close and no way I am cycling on a highway), I think how amazingly happy I am.  Life is good, the next 30 years may be the best 30.

[AccidentalMiser]

Thanks for the article, I also enjoyed reading it.  Worth some additional study, for sure.

[sobezen]

Thanks for sharing. I like the points raised and agree. Cheers!

[Timmmy]

OK, so $500k is enough to feel "happy", while also spending around $4 month. So basically the average person is content with a 9-10% withdrawal rate? One wonders how their happiness evolves as their portfolio dwindles...

Article discusses retirement, and not necessarily early retirement, so. . .

"On average, the happiest retirees reported having between two and three different source of income — the most commonly cited income sources were Social Security, investment income, real estate income, a pension, and part-time work...."

Spending is based on more than just portfolio income.  Read the part about multiple income streams.  These people are working part time, receiving SS AND withdrawing a small amount from their portfolio.