Will retirement pay you a ‘happiness bonus’?-Anne Tergesen

The benefits of retiring can outweigh health and money worries

Retirement

Life gets better after retirement—despite the financial and physical challenges associated with that time of life. That’s the upbeat conclusion of a new poll from MassMutual Financial Group, which finds that although nearly half of Americans retire sooner than they planned, “retirees indicate high levels of emotional well-being, enjoyment and financial security.”

While these conclusions may run contrary to stereotypes of later life as a time of loneliness, depression and decline, they came as no surprise to me: As I chronicled in a Wall Street Journal article earlier this month, a growing body of scientific research that shows that, in many ways, life gets better as we get older.
Consistent with the research of Laura Carstensen, a psychology professor and director of Stanford University’s Center on Longevity, the MassMutual survey finds that positive emotions increase and negative emotions decrease over time among those in or near retirement. For example, while 72% of retirees say they are “extremely or quite happy,” only 61% of pre-retirees say the same. Moreover, almost 70% of retirees report being “extremely or quite relaxed,” versus 34% of pre-retirees. And fewer retirees than pre-retirees report feeling negative emotions, including stress, frustration and nervousness.
“Even though leading up to retirement, people have fear and anxiety, they seem to really enjoy their retirement years,” says Mass Mutual executive vice president Elaine Sarsynski. Moreover, she adds, people seem to get happier as time goes by.
Based on responses from 1,817 people within 15 years of retirement (before and after), the MassMutual survey was conducted in September. Respondents had to be at least 40 years old and have savings or investments of at least $50,000—a sum that’s consistent with the average 401(k) balance of baby boomers, according to Sarsynski.
Research by Carstensen, among others, indicates that emotional well-being improves until the 70s, when it levels off. Even centenarians “report overall high levels of well-being,” according to a 2014 study Carstensen co-wrote, which also cites extensive earlier research.
Overall, 60% of those responding to the MassMutual survey say they are very satisfied with their lifestyle in retirement—a finding most prevalent among those in their 70s, in good health, married or living with partner and with at least $500,000 in assets. Those with pensions are also happier.
According to the new poll, retirees say retirement has given them the opportunity to:

• Enjoy themselves (82%)

• Have more free time (80%)

• Have new experiences (69%)

• Enjoy friends (65%)

• Live a more relaxed lifestyle (66%)

• Feel fulfilled (64%)

• Reinvent themselves (25%)

Interestingly, the findings show that the pre-retirees’ worries about retirement tend to be overblown. For example, while 44% of pre-retirees worried about financial uncertainty, only 31% of retirees say that has been an issue. Among those still working, 31% say they worry about filling their time in retirement. But only 14% of retirees share that concern. Moreover, as retirement progresses, satisfaction rises. Among those who retired less than five years ago, 56% report being satisfied, versus 63% who retired more than five years ago.
Is all perfect in retirement? Not by any means. Aside from the 31% who report financial uncertainty, 13% say they are too busy and 10% have developed an illness or disability.

Sarsynski says the poll contains some lessons for pre-retirees. The first is to be prepared. Those who prepare financially and emotionally for retirement—by doing things like calculating the best time to collect Social Security, reconnecting with old friends and focusing on their relationship with their spouse—were happier, on average, than those who didn't take such steps, the poll found. Moreover, because 45% of respondents retired sooner than they had expected to, it’s important not to assume that you can retire on your own timetable.

Culled from Market watch