What you really need in retirement: friends

By Walter Updegrave, senior editor


(Money Magazine) -- My wife is always chiding me that I spend too much time working and not enough keeping up with friends. "You'll be sorry when you retire and don't have anyone to do things with besides me," she warns. I hate to say it, but she's right. It's easy to assume retirement planning is all about the bucks, but nonfinancial issues matter too.

A Pew Research Center report shows friendships rank with sound health and finances as the factors most likely to boost happiness. The study found that retirees who are very satisfied with their number of friends were nearly three times more likely to be happy than those who are worried about relationships. A comparable gap exists between those who are very confident in their finances and those who aren't.

walter_updegrave__2009b.03.jpg
Walter Updegrave is a senior editor with Money Magazine and is the author of "How to Retire Rich in a Totally Changed World: Why You're Not in Kansas Anymore" (Three Rivers Press 2005)

The fact is, as we age, our focus tends to shift from finances to finding meaning in our lives, according to research by the MetLife Mature Market Institute. "You begin to think about how much time you have left," says gerontologist Sandra Timmerman, "and you ask yourself, 'What's really important in life?'"

So what do we really find important? Social connections, for one. The Pew study found that another factor driving happiness is attendance at religious services. Retirees who attend some form of worship, even if only occasionally, are more content than those who seldom or never do. I bet this has as much to do with being part of a group with which you share time and values.

Invest in relationships

I'm not suggesting that you should address lifestyle issues with the same precision you do your finances by, say, allocating 40% of your time to health matters, 35% to friends, and 25% to spirituality. But it can help to approach nonfinancial matters in a somewhat similar manner.

For example, just as you should diversify your nest egg, you need to have a balanced approach when it comes to retirement readiness.

And just as it's important to visualize your retirement before you invest, you need to plan ahead for the role your friends will play in your post-career life. Start by taking stock of your social network. The Retirement Circles worksheet in the happiness section of retirementwellbeing.com can help you with that.

One way to expand your connections is by joining groups dedicated to causes you believe in, or by volunteering. Retirees who volunteer are about 15% more likely to be very satisfied than those who don't, according to Urban Institute research.

Whatever you do, think about more than your nest egg. It would be a shame to get that part right but still not enjoy your retirement.  To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.