Does money buy happiness in retirement?
It’s no secret that saving money for retirement matters. More than 90% of Americans believe financial resources affect their quality of life as they age.¹ At the same time, people are living longer, which means retirement could last 20, 30, or even 40 years. The challenge isn’t just saving enough money; it’s also having a financial plan that can support the life you want for decades to come. Check out the four steps you can take now to prepare for a longer retirement.
When thinking about retirement, the focus is often on saving a certain amount of money. But retirement is about much more than a number. Money can help give you choices and opportunities, whether that means maintaining your health, spending time with family and friends, traveling, pursuing hobbies, or simply feeling financially secure. Understanding how money supports your well-being can help you prepare for a longer retirement.
What money can and can’t buy in retirement
| Money helps with | Money alone can’t guarantee |
| Healthcare access | Meaning and purpose |
| Housing security | Strong relationships |
| Reducing financial stress | Emotional fulfillment |
| Travel opportunities | Community connection |
| More lifestyle choices | Physical health outcomes |
How money affects more than your finances
Money and well-being are closely connected. Research shows that finances can influence several areas of life as you age.1
Your health
Financial stress can take a toll on both your mental and physical health. If money is tight, some people may delay medical care or skip necessary prescriptions due to cost concerns. Over time, those decisions can affect long-term health and quality of life.
Tip: Create a realistic budget and learn more about potential healthcare expenses in retirement. Small steps today can help reduce stress and make it easier to manage unexpected expenses later.
Your social connections
Staying connected with family, friends, and your community can play a big role in your overall well-being during retirement. But financial limitations can sometimes make it harder to participate in activities and experiences you enjoy. Research found that many people worry about having enough money to stay socially engaged as they age.1
Tip: When planning for retirement, include room in your budget for the activities and experiences that are meaningful to you.
Taking control starts with education
Many people struggle with concepts such as investing, inflation, and diversification. Building your financial knowledge can help you make informed decisions about your future. Take advantage of educational resources, planning tools, and financial guidance offered by your company or retirement plan to help you feel more confident about your future.
Four steps to help you prepare for a longer retirement
Living longer can be a gift, but it also creates planning challenges. Here are four practical steps you can take now.
1 Make saving automatic
One of the easiest ways to grow your account balance is to make it happen automatically. If possible, increase your contribution rate when you get a raise or pay off debt. Even small increases can make a difference over the long term.
2 Think beyond money
Money’s important, but it’s just one part of retirement planning. Consider other factors that may affect your quality of life, including healthcare, housing, transportation, and social connections. Taking a broader view can help you build a more realistic picture of retirement and the costs that may come with it.
3 Keep learning
Financial confidence doesn't happen overnight. The more you understand about budgeting, investing, retirement income, and inflation, the better prepared you may feel to make decisions along the way. Use educational resources, webinars, calculators, and planning tools offered through your retirement plan or financial professional. These resources can help you connect today’s financial choices with your long-term retirement goals.
4 Plan for life, not just retirement
A successful retirement plan is about more than reaching a savings target. Think about what you want your retirement to look like. Where do you want to live? How do you want to spend your time? Understanding what matters most can help you estimate the resources you'll need and stay motivated to save.
The bottom line
Money isn't the only goal when you’re thinking about retirement—but it's an important tool that can help support the life you want to live. Whether it's maintaining your health, staying connected with others, pursuing your interests, or feeling financially secure, your retirement savings can help create opportunities throughout a longer life. By saving consistently, continuing to learn, and planning for all areas of retirement, you can take steps today that may help you enjoy a longer, healthier, and better tomorrow.
Discover our guide to thriving in retirement.
FAQs
Does having more money make retirees happier?
Having more money can support happiness in retirement by reducing financial stress and providing more choices, such as better healthcare or opportunities to travel. But money is only a tool. Purpose, relationships, and health still play a bigger role in overall happiness.
What factors contribute most to happiness in retirement?
Happiness in retirement comes from a mix of financial security, good health, and strong social connections. Having enough savings to cover healthcare, housing, and meaningful activities helps reduce stress. At the same time, feeling useful, staying engaged with people, and having a clear sense of purpose are critical to long-term well-being.
Can you be happy in retirement without being wealthy?
Yes, you don’t need to be wealthy to be happy in retirement. A realistic budget, manageable healthcare and housing costs, along with a steady income, can provide stability. When combined with close relationships, community involvement, hobbies, and a clear sense of purpose, many people find strong life satisfaction without high levels of wealth.
Why is purpose important in retirement?
Purpose gives structure and meaning to your days once work is no longer central. It can come from volunteering, caregiving, creative pursuits, or community roles. Having purpose supports emotional fulfillment, keeps you engaged with others, and can improve mental and physical health over the long term.
How can you prepare for a retirement that lasts 30 years or more?
- Make saving automatic and increase contributions when your income rises.
- Plan beyond money by considering your healthcare, housing, transportation, and social life.
- Keep learning about investing, inflation, and retirement income.
- Define what you want life in retirement to look like so you can align your savings and plans with your goals.
How can we make a longer retirement better?
Longevity is about balancing health and wealth to help make those extra years better. The implications are shifting the way we think about retirement.
Important disclosures
Important disclosures
The content of this document is for general information only and believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice . Consult your own independent advisor as to any investment, tax, or legal statements made.
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