10 Habits Happy Retirees Have In Common

A 2010 Time Magazine article about the plateau effect—Americans not seeing significant rises in happiness levels as income rises above $75,000—inspired my first intensive study on the relationship between money and happiness. Though roughly 15 years have passed, and more nuanced conclusions have been analyzed, the eye-opening revelation remains an essential reminder for retirees. Namely, happiness isn’t only about the money itself. What people do with that money can often be the difference between a happy and unhappy retirement.

In many ways, a happy retiree is what a happy retiree does, so I’ve conducted several surveys over the years asking American retirees a series of 35 questions about their habits and behaviors. The answers identified 10 common habits of happy retirees.

10 Common Habits Of Happy Retirees

Happy retirees have excellent money habits.

With ample savings, happy retirees tend not to retire until the mortgage is paid off or the end is at least within sight. Data showed they are four times more likely to hold that deed of reconveyance within five years of retirement than unhappy retirees.

MORE FOR YOU
iOS 18.1.1—Update Now Warning Issued To All iPhone Users
Leak Reveals Trump Crypto Bombshell As Bitcoin Suddenly Surges Toward $100,000 Price
iOS 18.1.1: Apple Recommends New iPhone Update For All Users

Knowing that their primary earning years may be in the rearview, they plan and arrange to have multiple streams of income. These can include part-time work, part-time consulting, rental income, investment income (various types), Social Security, and pension income. The source doesn’t matter nearly as much as the diversity. The shift in mindset, especially for older generations, is to transition from one big W2-style paycheck to multiple smaller checks.

Happy retirees are curious and adventurous, with at least three “core pursuits.”

What is a core pursuit? It’s a hobby on steroids, one of your “super activities,” which you often look forward to doing. The survey found that happy retirees average 3.6 core pursuits versus 1.9 for unhappy retirees. From taking trips to making art, exploring ancient ruins, building model ships, restoring old cars, blowing glass, writing novels, penning poetry, and displaying taxidermy—there are as many choices as there are happy retirees to pursue them.

Happy retirees are curious to explore what they couldn’t see when tied to a desk for all those years. It follows, then, that vacations are essential. Happy retirees take 2.4 vacations a year versus 1.4 for the less happy. You may be thinking to yourself, “So what? It’s just a difference of one vacation!” However, from the research, one vacation made all the difference between being happy and miserable.

Happy retirees love their kids and see them regularly—but their kids are independent.

The research found that retirees who live “near or close” to at least half their children are five times more likely to be happy than those who don’t. The happiest families are close, figuratively and literally—just not too close. The goal is for your adult children to be out in the world living their own lives rather than dependent upon you.

Living near each other is a positive. Living with each other is much more precarious.

Happy retirees are married and have never been divorced or only divorced once.

What about love and marriage? The survey gave invaluable insight on that, too, including some surprising results. The numbers are clear: one do-over doesn’t seem to carry adverse effects. Having two or more divorces typically leads to less reliable happiness levels.

Longevity seems to matter as well. At 40+ years, couples are two times more happy than at any other point in their marriage besides their honeymoon. Some may refer to this as the "We made it!" phase.

Longevity seems to matter as well. At 40+ years, couples are two times more happy than at any other point in their marriage besides their honeymoon. Some may refer to this as the "We made it!" phase.Longevity seems to matter as well. At 40+ years, couples are two times more happy than at any other point in their marriage besides their honeymoon. Some may refer to this as the "We made it!" phase.

Happy retirees believe and give.

There is no specific data on how happy retirees worship, but there seems to be a connection between having faith in something, giving back, and being happy. Happy retirees who attend a religious service an average of once per week are 1.5 times more likely to be happy. Happiness levels drop with less attendance but don’t rise with more. Once per week seems to be the sweet spot.

In addition to the spiritual aspect, church can be a powerful way to build community. Losing access to social networks is one of the most significant risks during retirement. Even if you’re on the fence about your beliefs, getting involved at your local church, synagogue, etc., will give you access to a larger community of good people doing good works. And while you certainly don’t have to attend church to start volunteering, the two often go hand in hand: most church communities have ample opportunities for retirees.

Happy retirees stay connected.

Social connection is crucial to survival, and happy retirees tend to be social creatures. Marriages are important, but sometimes friendships are even more so. Happy retirees excel at cultivating their social support systems. This research mirrors that of the Blue Zone’s findings regarding Okinawan centenarians forming a Moai, or group of individuals who pledge to be lifelong friends. These connections offer social, financial, and spiritual support to one another.

Socialization can happen anywhere. Happy retirees remain eager for adventures with companions.

Happy retirees are healthy.

It’s tough to discuss happiness without exploring health. Anyone who has been sick for an extended period knows that without good health, not much else matters. That’s why the happiest retirees are active. Period. They love “INGs”—walking, hiking, biking, running, jogging, swimming. Tennis is a particularly attractive option; it is the perfect combination of both health and socialization. In fact, a Danish survey of 8,700 people over 25 years found that tennis adds 9.7 years to life expectancy compared to a sedentary lifestyle.

Happy retirees have good housing habits.

Happy retirees don’t typically live in McMansions but refrain from downsizing because they know their kids and grandkids will come home to visit.

The happiest retirees know neighborhoods and networks are more critical than their four walls. It can be tempting to move to greener pastures. But sometimes, when you’ve spent years cultivating your community, the best nest might just be the one you’ve been roosting in all along.

Happy retirees exhibit excellent investor behavior.

Happy retirees don’t panic or jump haphazardly into the latest investment trends. Several core investment habits clearly separate the happiest retirees from the unhappiest. First, stock dividend income typically trumps bond income. Second, investment success is less about perfection and more about participation. Chasing the fluctuations of the market is not a productive plan. Happy retirees give themselves time to earn. Losing money feels twice as bad as making money feels good, but happy retirees know to take the long view rather than make decisions based on emotion. Finally, the happy retirees are tomorrow investors, not today investors.

Happy retirees are savvy spenders.

Happy retirees may have experienced challenges here or there, but for the most part, they’ve prioritized saving over spending without needless deprivation. They are masters of the middle who can still enjoy a fancy latte now and then.

Whether their monthly spending limit is $5,000, $6,000, or $10,000 per month doesn’t matter as long as it’s affordable in their own situation and clearly defined beforehand. Happy retirees generally know how to save and spend with balance and an eye toward the future.

Bottom Line

These 10 common habits of happy retirees are an instruction manual for people who want to achieve the same happiness. Whether you’re still in your 30s or 40s projecting ahead into the future, in your 50s or 60s getting ready to retire, or you already are retired, these habits, behaviors, lifestyle choices, and financial principles are ones you can adopt today to push your life towards more happiness tomorrow.