Retirement planning is all about numbers. It centers around one question: Do my financial assets — pension, 401(k)s/IRAs, Social Security, property, sale of a business, etc. — provide enough income to fund my lifestyle goals in retirement?
At least, that is what most people think. But ask any retiree, and they will likely tell you that it is only half the story. You’ll need enough money to get by, of course, but you don’t have to be super wealthy to be happy. In fact, life satisfaction tops out at an annual salary of $95,000, on average, according to a study by psychologists from Purdue University. Enough money to never have to worry about going broke or paying for medical care is important. But money is not the only or even the most important piece of a fulfilling retirement.
So, once you have your retirement plans, it is crucial for you to focus on all those things money cannot buy. Jacob Schroeder with Kiplinger, gives you seven happy habits that studies show can improve life satisfaction in retirement.
Habit No. 1: Happy retirees work at staying healthy
What good is money if you cannot enjoy it? Most retirees say that good health is the most important ingredient for a happy retirement, according to a Merrill Lynch/Age Wave report. Studies show that exercise and a healthy diet can reduce the risk of developing certain health conditions, increase energy levels, boost your immune system, and improve your mood.
Habit No. 2: They foster strong social connections
Hobbies and activities with people we like can boost life satisfaction, especially when our social networks shrink after leaving the workforce. Happier retirees were found to be those with more social interactions, according to one poll.
Further, social isolation has been linked to higher rates of heart disease and stroke, increased risk of dementia, and greater incidence of depression and anxiety.
Habit No. 3: Happy retirees find a clear sense of purpose
The notion of retirement as time spent golfing, strolling the beach, or reading classic novels is outdated. While fun, the stereotypical leisure activities associated with retirement don’t provide a sense of purpose or meaning, which many retirees believe to be so important.
One place that retirees find a sense of purpose is work. In one poll, nearly 3 in 4 Americans said they plan to work beyond traditional retirement age, with the majority planning to do so because they “want to,” not because they “have to.”
Retirees also gain meaningfulness and other benefits from volunteering. Further, those who donated money or volunteered felt a stronger sense of purpose and self-esteem and were happier and healthier.
Habit No. 4: They never stop learning
Experts believe that ongoing education and learning new things may help keep you mentally sharp simply by developing a habit of staying mentally active. Exercising your brain may help prevent cognitive decline and reduce the risk of dementia.
Habit No. 5: They train their brains to be optimistic
A glass-half-full attitude may pay huge dividends, including lower risk of developing cardiovascular disease and other chronic ailments and a longer life. In an article published in JAMA Network, researchers found that participants who rated highly in optimism were much less likely to suffer from heart attacks or other cardiovascular events and had a lower mortality rate than their pessimistic partners.
Other research articles, indicate that optimistic women had a 50% greater chance of surviving to age 85, and optimistic men had a 70% greater chance.
Habit No. 6: Happy retirees practice mindful gratitude
Studies by psychologists Robert Emmons and Michael McCullough show that people who counted their blessings had a more positive outlook on life, exercised more, reported fewer symptoms of illness and were more likely to help others. Gratitude enhances people’s satisfaction with life while reducing their desire to buy stuff.
Habit No. 7: They have a furry or feathered friend
It turns out that Fido can provide more benefits to you than grabbing the newspaper. According to a study in The Journal of Epidemiology and Community Health, older dog owners who walked their dogs at least once a day got 20% more physical activity than people without dogs and spent 30 fewer minutes a day being sedentary. Research has also indicated that dogs help soothe those suffering from cognitive decline, and the physical and mental health benefits of owning a dog can boost the longevity of the owner.
If a dog is not an option for you, cats and birds are lower-maintenance pet options. Or you could even consider pursuing home visits from a therapy dog. Therapy Dogs International has a home visit program with over 20,000 volunteer dog/handler teams registered throughout all 50 states.
Retirement is major transition made up of many financial as well as life decisions. Therefore, it is very important to work with a financial advisor to create a solid plan as early as possible. That way you can spend more time focusing on everything else that equally matters.
