Why Money Alone Can’t Guarantee a Happy Retirement

Can’t buy me love, the Beatles song goes, but what about a happy retirement? 

It’s been more than 20 years since the writer Dan Buettner helped popularize the idea of Blue Zones, areas of the world where daily physical movement, healthy diet and regular social engagement create excess longevity. Scientists have since questioned the underlying research, suggesting shoddy data is the real explanation behind Blue Zones. What’s not in doubt is that a happy and healthy retirement requires more than money, and advisors should help clients find meaning in their golden years. 

“You can question the numbers behind the Blue Zone concept,” Jon Sabes, author and founder of Longevity Financial Partners, told Retirement Upside. “What you can’t deny is the link between lifestyle, healthy habits and well-being. Happiness in retirement is not just about how much money you have but how you’ve created a sense of meaning.”

The 3 Ts of Meaning 

The “3 Ts of meaning” in retirement, namely time, talent and treasure, have become a popular mantra in retirement planning and David Blanchett, head of retirement research at Prudential Financial, believes that intentionally building a sense of purpose in retirement is paramount. 

“Americans associate their identity with their jobs and when you’re no longer working, you can lose that,” Blanchett told Retirement Upside. “The idea behind the 3 Ts is thinking about how you can redeploy your time, treasure and talent to intentionally create this sense of purpose. The key here is that these 3 Ts cover a variety of ways people can have an impact.”

For example, a given client may not have excess savings beyond what they need to live (i.e., they are low on treasure), and for whatever reason, they may not have specific talents that could be useful for the social issues they’re concerned about. Maybe, though, they have lots of time to offer in service to a well-defined cause or organization. “You can use this resource to have a positive impact,” Blanchett said. “Being very intentional about this idea of mattering is an important part of achieving a truly successful retirement. Now, that’s not to suggest Americans couldn’t save more for retirement, but I’m not convinced finances are the biggest concern.” Case in point, from Blanchett’s research on the topic: 

• Self-reported financial well-being declines for only about 7% of households moving into retirement, despite consumption declining by about 20% on average.
• 84% of those age 80 or older spending just $20,000 to $30,000 annually are satisfied with their situation. 

Put Me In, Coach! Sarah Mouser, managing director of financial planning at Verdence Capital Advisors, encouraged planners to factor the “mattering challenge” into their work. She’s even heard of some firms tapping life coaches and career consultants to help clients make a smoother emotional transition to retirement. “It’s not for everyone, but life coaching can be so beneficial,” Mouser said. “People will literally delay retirement unnecessarily because it’s scary to think about that loss of routine and meaning. This has to be part of the plan.”