Retirement investors say wealth isn't the key to happiness, new survey finds

Retirement confidence isn’t solely tied to account balances; there are several other important aspects of what makes for a good retirement.

A newly-released national study from the Oath Money & Meaning Institute, a research arm of Oath Planning, reveals how pre-retirees and retirees assess their finances, happiness and the meaning they derive from later life.

The research was gathered in September from nearly 900 Americans, generally ages 60 to 70 with around $500,000 in net worth and found that most believe they are financially on track with a combined 92% stating they are either in the same (57%) or a better (35%) economic position compared with a year ago.

Only 8% felt their situation had slipped. However, 11% of women said their finances had worsened, compared with 5% of men and men were also more likely to say they were in a better spot than last year (43% vs. 27%).

Even with generally stable finances, roughly two thirds said they do not view their household as financially “wealthy,” including 67% of women and 60% of men.

The survey also highlights a notable disconnect between money and life satisfaction. While nearly nine in 10 said they’re as happy or happier than a year earlier, 55% indicated that their mood has little connection to personal finances. Only about one-third credit financial status as a key reason for how they feel today.

Asked what they wish they’d done differently when preparing for retirement, many respondents prioritized health ahead of piling up more savings. “Taking better care of my health” closely trailed “save more money” as the top answer.

Sixty-five percent of respondents agreed that money can boost happiness but mainly by alleviating anxiety around necessities like housing and living costs. Only 6% said doubling their assets would translate into a more extravagant life and 38% said such a windfall wouldn’t alter their lifestyle at all.

Many women described wealth as playing “no role” or a “minor role” in fulfillment, pointing instead to friendships, family life, volunteering and staying healthy. Men were somewhat more likely to cite the security that wealth provides, noting “the peace of mind of being able to take care of my family” and “live a comfortable life.”

“The survey results are consistent with our experience working with clients that many retirement age Americans feel happy and secure – but not because they consider themselves wealthy,” said Rod Yancy, Oath Founder. “The happiest participants in our study emphasize the need to balance money, health, family and personal interests as a path to a more fulfilling retirement. The wealth management industry has done a good job traditionally helping investors save, but our findings suggest the industry could do much more to help investors achieve a fulfilling retirement.”