WHAT SCIENCE REVEALS ABOUT MONEY AND A HAPPY RETIREMENT

Whether you're still planning or already retired, these research-based insights point the way to your best post-work life.

- BY DIANE HARRIS

YOU’VE worked hard, saved diligently and invested wisely throughout your career, building a tidy nest egg—the perfect recipe for a happy retirement.

Or is it? Science says not so fast. A growing body of research from academics, social scientists and financial services providers is shedding light on what it takes to be truly happy in retirement—and what behaviors and circumstances detract from that happiness. As it turns out, while money is certainly an important factor, the studies paint a more nuanced picture of the role your finances play in a satisfying retirement and what other ingredients matter as much or more to achieve lasting happiness in your life after you leave the workforce behind.

For one thing, researchers say, how much you’ve saved may be less important to your happiness than the form your income comes in and how you spend what you’ve got, whatever the amount is. And money alone won't cut it in the happiness department. Your social connections, physical well-being and sense of purpose matter as much or more than the cold, hard cash you've socked away.

“While money does tend to make people happier, it’s really the combination of money, relationships and health that drives a satisfying retirement,” says Michael Finke, a professor of wealth management at the American College of Financial Services and a leading researcher in the field. “If you have a lot of money but don’t have the relationships, it doesn’t necessarily make you happy. You have to be able to recognize that all of these factors are investments, and build them, to achieve true satisfaction in your life after work.”