How to Achieve a Happy Retirement: Insights from Christine Benz

Retirement is a significant transition, and for many, it’s a time to shift from years of accumulation to a phase where life can be enjoyed to its fullest. Christine Benz, Director of Personal Finance at Morningstar and author of How to Retire: Lessons from 20 Retirement Thought Leaders, offers a fresh perspective on what it takes to have a “happy retirement.” In her recent interview on the Forget About Money podcast, Benz explains that a truly fulfilling retirement goes beyond finances and embraces relationships, purpose, and adaptability.

In this article, we explore the key themes from Benz’s approach, offering readers actionable steps for living a happy and purpose-driven retirement.

Understanding What a “Happy Retirement” Means

For many, a happy retirement simply means freedom from work, but Benz encourages a broader outlook, describing retirement as a time to “align your time and spending with personal values and happiness.” Retirement is a stage that offers the chance to shape a new lifestyle—one that incorporates both financial security and personal fulfillment.

What is Holistic Retirement Planning?

Benz emphasizes the importance of holistic retirement planning, which means considering not just the financial but also the emotional and social aspects of retirement. In the Forget About Money episode, she explains, “I began to shift from solely focusing on finance to looking at retirement as a phase of life that requires thoughtful planning around relationships, health, and happiness.” This holistic approach helps retirees create a well-rounded lifestyle that goes beyond meeting financial needs and addresses overall well-being.

The Role of Relationships in Retirement Happiness

Benz highlights that strong relationships play a central role in achieving a happy retirement. This idea is supported by Laura Carstensen, a researcher Benz cites, who says that our social networks are key to our happiness and well-being. During the podcast, Benz mentions, “Our social networks tend to winnow down as we age, but that’s okay—we become more selective and focus on relationships that truly matter.” These connections provide emotional support, combat loneliness, and give retirees a sense of belonging.

Building and nurturing these relationships doesn’t have to be complex; simple acts, such as planning regular meetups with friends or engaging in community activities, can make a significant difference. Benz encourages retirees to think about ways they can stay socially connected even if they have left their workplace.

Aligning Spending with Happiness

Another essential element of a happy retirement, according to Benz, is aligning spending with personal happiness. Benz draws inspiration from personal finance expert Ramit Sethi, who advises focusing on spending in areas that bring genuine joy. Benz shared her own experience with this approach: “If a luxury car isn’t a priority, then why have it? It’s about making spending choices that reflect your values, even if they don’t align with societal expectations.”

This approach can be especially helpful for retirees who might feel pressure to spend on “traditional” retirement luxuries. Instead, Benz suggests creating a “retirement spending vision” to focus on what will make the retirement experience meaningful for you—whether that’s travel, hobbies, or quality time with family. When retirees spend in ways that reflect their priorities, they often feel more satisfied and financially secure.

Practical Ways to Align Spending with Happiness

• Identify Your Values: Reflect on what truly matters to you, whether it’s family, travel, or hobbies.
• Make a Spending Plan: Create a budget that prioritizes these areas rather than following others’ expectations.
• Reevaluate Regularly: Benz recommends revisiting your spending plan as your needs and values evolve over time.

Defining Your Retirement Income Style

Retirement income isn’t one-size-fits-all, and Benz advises retirees to understand their retirement income style to find a strategy that supports their needs and comfort level. Benz references retirement expert Wade Pfau’s concept of identifying an income style to help retirees feel secure. As Benz puts it, “It’s about figuring out if you prefer a steady paycheck through an annuity or a more flexible withdrawal approach.”

For instance, someone who values stability might lean toward an annuity that offers guaranteed income, while a retiree comfortable with market fluctuations may prefer a diversified portfolio with systematic withdrawals. Knowing your retirement income style helps ensure you have an income strategy aligned with your lifestyle, reducing financial stress and contributing to a happy retirement.

Examples of Retirement Income Styles

• Annuities: Ideal for those who value a steady income.
• Systematic Withdrawals: Suitable for retirees comfortable with managing investments and dealing with market fluctuations.
• Hybrid Approach: A mix of annuities and withdrawals to balance flexibility and stability.

Living Without Regrets in Retirement

Reflecting on life’s big questions is common during retirement. Christine Benz discusses the importance of living without regrets, a concept she explores with author and hospice doctor Jordan Grumet. Grumet’s advice centers around trying new things and focusing on purpose-driven activities. Benz shares, “Jordan’s key message from working with patients near the end of their lives is that people regret things they didn’t try.”

Living without regrets means embracing both “big-P” and “small-P” purposes, as Grumet calls them. A “big-P” purpose might be writing a book or starting a community project, while a “small-P” purpose could be cultivating a hobby or spending quality time with loved ones. Taking steps toward fulfilling both types of purpose can lead to a deeply satisfying retirement.

Practical Steps for Living Without Regrets

• List Your Aspirations: Write down big and small goals you want to achieve in retirement.
• Make a Plan: Schedule time for these activities, treating them as essential parts of your retirement plan.
• Reflect Often: Periodically evaluate whether you’re on track to live your retirement without regrets.

The Benefits of Phased Retirement and Adaptability

For many, retirement doesn’t mean a complete halt in professional life. Benz discusses the value of phased retirement, which allows individuals to gradually reduce work hours and focus on the aspects of their careers they enjoy most. Phased retirement is beneficial because it offers both financial and emotional benefits, helping retirees maintain a sense of purpose and connection.

Benz encourages retirees to think about “phased retirement trends” beyond simply reducing work hours. She explains, “It could be about shifting to a new role or engaging in meaningful volunteer work. The idea is to keep doing something that brings value, whether paid or unpaid.” By staying adaptable, retirees can continue to engage with activities that bring fulfillment, while adjusting their workloads as they age.

How to Incorporate Phased Retirement

• Gradual Transition: Slowly reduce work hours over time instead of making an abrupt exit.
• Focus on Enjoyable Tasks: Shift your workload to include tasks you find fulfilling and reduce those you don’t.
• Consider Volunteer Work: Explore unpaid roles that allow you to stay engaged with your community while still experiencing a sense of purpose.

Embracing Flexibility and Adaptability in Retirement Planning

Finally, Benz emphasizes the need for flexibility and adaptability in retirement planning. Retirement is an evolving phase, and as she points out, “Planning to adapt as you go is one of the best things you can do.” This mindset is crucial for navigating life changes that may arise due to health, family, or financial circumstances. Flexibility enables retirees to make adjustments to spending, activities, or even where they live, ensuring they remain comfortable and content.

Conclusion: Crafting a Happy Retirement with Christine Benz’s Insights

A happy retirement is about creating a life that blends financial security with emotional fulfillment. Christine Benz’s approach offers a roadmap for achieving this balance, focusing on aspects that go beyond money: nurturing relationships, aligning spending with personal happiness, understanding retirement income style, and embracing adaptability.

For anyone preparing for retirement, Benz’s insights provide both encouragement and practical strategies for living a happy, purpose-driven life. As she advises, “Take the time to understand your values, plan intentionally, and remain open to change.” By doing so, retirees can not only enjoy financial and personal fulfillment but also look back on their years with satisfaction, free from regrets.

Key Takeaways

1. Embrace Holistic Retirement Planning: Look beyond finances to consider relationships, health, and happiness.
2. Cultivate Meaningful Relationships: Social connections play a major role in long-term happiness.
3. Align Spending with Personal Priorities: Spend in ways that reflect your unique values.
4. Understand Your Income Style: Choose a retirement income approach that suits your lifestyle and preferences.
5. Live Without Regrets: Focus on both “big-P” and “small-P” purposes to bring fulfillment.
6. Consider Phased Retirement: A gradual shift away from work helps maintain a sense of purpose.
7. Stay Adaptable: Flexibility in planning helps you navigate the unexpected.

Christine Benz’s comprehensive approach to retirement provides guidance for those seeking to create a truly happy retirement, where financial security is paired with the richness of relationships, purpose, and adaptability.