03.04.25 Ask An Advisor With Wes Moss - 10 Habits of the Happiest Retirees
Mar 4, 2025
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Wes Moss, a fiduciary financial advisor with expertise in retiree happiness, shares 10 key habits that ensure a fulfilling retirement. He emphasizes the significance of both financial planning and lifestyle choices, recommending a financial target of $750,000 and diverse income streams. Engaging in 'core pursuits' and maintaining social connections are highlighted as vital for mental well-being. The discussion also touches on adjusting investment strategies and navigating TSP allocation to create a balanced retirement portfolio.
Financially, the happiest retirees typically have at least three income streams, which provides a diversified financial foundation for their retirement.
Engaging in core pursuits, maintaining strong social bonds, and participating in travel and volunteer activities significantly enhance retirees' overall happiness and fulfillment.
Deep dives
Financial Metrics for Happy Retirees
The median amount of savings for happy retirees is established at $750,000, while the average sits at $1.25 million, which counters the notion that individuals need multi-million dollar portfolios for financial security. This statistic reflects the importance of planning and saving early, encouraging younger individuals to set achievable financial goals. Moreover, the happiest retirees typically maintain multiple streams of income, with a minimum of three, including Social Security, pensions, and potential rental income, ensuring a diversified financial foundation. These financial habits are complemented by a focus on smart spending strategies, such as adhering to the 4% rule for withdrawals, which guides retirees on how much they can safely spend without risking their savings.
Core Pursuits and Engagement
Happy retirees engage in a variety of activities, categorized as core pursuits, typically averaging around 3.6 such pursuits. These activities are not merely hobbies; they are vital in keeping retirees mentally and socially active, providing purpose beyond traditional work. Examples of core pursuits include part-time work, volunteering, or pursuing interests that foster personal growth and improvement. This engagement ensures a structured daily routine that mitigates feelings of purposelessness often experienced in retirement.
Social Connections and Family Dynamics
Maintaining close connections significantly contributes to retirement happiness, with happy retirees averaging nearly four close friends or family members they can rely on for support. Interestingly, those with independent children living nearby are notably more likely to enjoy their retirement. Additionally, while a single divorce does not appear to diminish happiness, multiple divorces can negatively impact satisfaction in retirement, reinforcing the importance of stable relationships. This suggests that fostering strong social bonds and family ties is crucial for achieving lasting contentment during retirement years.
Travel and Volunteerism as Happiness Multipliers
Traveling with friends or family is identified as a significant factor in happiness among retirees, with those who travel at least once a year with a group significantly more likely to report satisfaction. Furthermore, retirees who engage in charitable activities or volunteer their time exhibit higher levels of happiness, emphasizing the positive correlation between giving and fulfillment. Participating in organized social groups, whether through churches, community centers, or recreational clubs, also enhances social engagement and mental well-being. Ultimately, seeking opportunities for connection, exploration, and contribution plays a pivotal role in achieving a fulfilling retirement.
Are you dreaming of a truly happy retirement? Fiduciary financial advisor Wes Moss reveals the 10 key habits of those who are living their best post-work lives, based on years of research. In today’s Ask an Advisor episode, Wes dives into both the financial and lifestyle choices that make all the difference.
Plus, Christa shares your #AskWes questions and Wes gives his take. All this and more on the March 4, 2025, Ask an Advisor episode of the Clark Howard podcast. Submit your questions at clark.com/ask.
We hope you enjoy our weekly Ask An Advisor episodes, in which Christa and Wes discuss investing and retirement savings in depth. Let us know what you think in the comments!
