Secret to Happiness
Over the course of our careers we have helped hundreds, maybe even thousands of local people plan for retirement. Most settle into retirement successfully and enjoy higher life satisfaction as they age. But we have also seen some retirees really struggle with retirement, and never recover their sense of identity outside of their career.
So, what’s the secret to living well in retirement? And is there anything we can do to increase our happiness?
More than money
A ground-breaking study by Richard Easterlin first formulated in the 1970s, but revisited in 2014, showed that over a 70-year period, people’s happiness in the United States fell despite real incomes increasing three times over.
How we feel about our money is more important than how much money we actually have. And that depends on whether we compare ourselves with others.
If we’re constantly looking for signs that that we’re better or worse off than others, we won’t be happy. It’s better to focus on our own situation, and if we have confidence to spend, then we have enough.
Not health either
A recent academic study found that people who become visually impaired experience emotional distress, but they’re subjective well-being and happiness are unaffected. Like money, how we feel about our health is more important than our actual state of health.
Good health on its own is taken for granted, and only severe or multiple illnesses actually lower people’s normal level of positive feeling.
Strengths and character
According to academic psychologist Martin Seligman, happiness is a choice and it must be earned.
When we choose to develop on our strengths through will and determination, we feel pride in our accomplishments, we gain satisfaction in life, and happiness that is genuine.
Similarly, authentic happiness arises through the slow development of what Seligman calls ‘character’. Character in this sense includes universally admired virtues like wisdom, courage, justice and spirituality.
It seems there are no shortcuts to genuine happiness and life satisfaction. The good news is our circumstances like wealth and health don’t really matter.
If you’d like to learn more about how we can align your financial strategy with your values and give you confidence to spend, give us a call. We’d love to help.
Daniel Crump is the founder of Daniel Crump Financial Planning. This article is general and does not consider your personal circumstances. If you would like advice specific to you, please visit www.danielcrumpfp.com.au or give us a call on 0418 148 622.
