How to Use Your Money to Increase Happiness as You Near Retirement
If you want proof that money alone doesn't buy happiness, just compare these two data points:
By any measure, the United States is one of the wealthiest countries in the world -- if not THE wealthiest.
And, at the same time, year after year, our collective happiness continues to decline.
So, if having more money doesn’t create more happiness ... then what the heck are we all doing?
Why are we up at the crack of dawn for our morning commute?
What are all those long hours at the office for?
Why are we topping off accounts longer than we have to if the ROI isn't making us feel better about our lives and our prospects for the future?
A recent poll from YouGov for MarketWatch approached the relationship between money and happiness from a slightly different perspective. I was struck by how the findings align with a core belief we have here at Keen Wealth: financial happiness isn't about accumulating more money. It's about aligning the money you have with your values, your purpose, and a sense of freedom.
Why Wealth Doesn't Always Equal Joy
Let's look at some key bullet points from the YouGov/MarketWatch poll:
Only 49% of respondents said the way they’re using and managing their money makes them happy. Of that 49%, only 16% felt "strongly" about it.
When asked "Which, if any, of the following activities bring you the most happiness?" Saving and Investing for the Future or Financial Independence topped the list (37%). Spending on Experiences (32%) came in second. Only 13% of respondents chose Spending on Material Goods.
72% of respondents said they would be happier if they saved or invested more, but only 21% said they’d be happier if they spent more.
I think one word connects these dots: autonomy. It's not that people are unhappy because they want more money, it's that they want to feel like they have more control over their lives.
And what's really interesting is: people know this! These numbers show that, deep down, we all know that buying stuff is not as enriching as planning to secure the experiences, big and small, that make life worthwhile.
But, instead, we choose that quick hit of happiness that comes when we buy a new phone, or a boat that’s bigger than the one parked in our neighbor’s driveway. Sure, those kinds of purchases make us feel good in the moment. But once that initial rush fades, we're back at square one, surrounded by stuff while the things we really want from our money drift further and further away.
A Perspective Shift for the Near-Retiree
However, the closer you get to retirement, the closer you're getting to that critical moment when you do need your money to provide freedom and security. No matter how much you love your job, no one can work – and earn – forever.
Nor should you want to. As you enter your 60s and 70s, you've probably achieved some major financial milestones: paying off your house, paying for college and weddings, selling the company you built. You may have hit – or even surpassed – your "retirement number" years ago. You know that racking up another year of paychecks or buying a new car isn't going to make your life any more fulfilling.
So, instead, what about having the freedom to stop working and do more of the things that you love with the people you love the most?
What about living well instead of just living comfortably?
How about designing your legacy on your terms?
With proper reflection and planning, these are the kinds of higher purposes you can use money to achieve in retirement.
5 Strategies to Align Wealth with Happiness
Pre-retirees should use these strategies to smooth the runway into their Golden Years.
1. Prioritize Freedom and Autonomy:
Question to Ask: Does my wealth give me the power to "choose"? Or do I feel "locked in" to certain costs and expenses that don't make me happier?
Action Step: Reassess your budget and look for costs you can cut that will give you more flexibility. Start with the small stuff, like streaming subscriptions. Closer to retirement, assess how many vehicles you really need and whether you should downsize.
Pitfall to Avoid: Underestimating how much life will change in retirement. Your budget, your possessions, and yes, even your concept of "home" will need to adapt to this new phase of life.
2. Spend on Experiences Rather Than Things
Question to Ask: Would I rather buy more stuff or experience more from life?
Action Step: Create an "Experience Bucket" in your financial plan for travel, learning, hobbies, and family time. Allocate more of your money and time to categories that make you happiest.
Pitfall to Avoid: Keeping up with the Joneses. Don't spend money on upgrades because you feel like you have to. Don't pick a vacation spot because that's where "everyone" is going this summer.
3. Align Spending and Investing with Your Values
Question to Ask: Does the way I spend my money reflect my personal values?
Action Step: Conduct a "Values Audit." Think about what matters the most to you: charities, causes, your community, your family, your health. Then, look at your bank and credit card statements from the past six to twelve months. How much did you spend on the values you listed? What kinds of contributions could make you feel happier in the year ahead?
Pitfall to Avoid: You can't help everyone. Set limits, and don't be afraid to say no.
4. Protect Your Baseline
Question to Ask: Do I feel financially secure, or do I worry every time I open my checkbook?
Action Step: Have a long-term cash flow plan for every stage of your retirement, including a tax-advantaged withdrawal sequence, emergency savings buckets (health care, home repairs, etc.), and a six-month buffer that covers your monthly expenses in case you need to make some major adjustments.
Pitfall to Avoid: Living at the extremes. If you spend too extravagantly in retirement, you could break your nest egg. If you spend too conservatively, you could miss out on experiencing retirement to its fullest.
5. Incorporate Relationships and Purpose into Your Plan
Question to Ask: Does my spending strengthen my connections to other people and enhance my sense of purpose?
Action Step: Live your legacy now. Use some of the money you've earmarked for beneficiaries to take trips with loved ones, build a new business that will improve your community, or contribute to philanthropic needs. Talk to your advisor about giving strategies that can help you support causes and loved ones so you can enjoy seeing your generosity in action.
Pitfall to Avoid: Waiting. Make the most of the time you have with the people you care about.
Plan For Better
If you have the money you need to retire, then it’s time to stop worrying about “more.”
Schedule a year-end review with Keen Wealth and let’s discuss how you can use your wealth better and experience more happiness in 2026.
About Bill
Bill Keen is a financial advisor with over 30 years of industry experience. As the founder and CEO of Keen Wealth Advisors, a registered investment advisory firm, he focuses on providing personalized retirement planning designed to help people thrive before and during their retirement years. With a passion for educating others, Bill regularly blogs about retirement planning, hosts the podcast Keen on Retirement, and has contributed to Forbes, U.S. News and World Report, Reuters, Wall Street Journal’s Market Watch, Yahoo Finance, and other publications. Based in Overland Park, Kansas, Bill and his team work with clients throughout the greater Kansas City area and across the nation. To learn more, connect with him on LinkedIn or visit www.keenwealthadvisors.com.
KWMG, LLC’s dba Keen Wealth Advisors (“company”) is an SEC Registered Investment Advisor located in Overland Park, KS. The company and its representatives may only conduct business in those states where registered or where excluded/exempt or from licensure. For registration information, please contact the SEC or the state securities regulators for the states where the company is notice filed. A copy of the company ADV is available upon request. Advisory services are only offered to clients or prospective clients where the company and its representatives are properly licensed or exempt from licensure. No advice may be rendered by the company unless a client service agreement is in place. This information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy and is for illustrative purposes only. Clients and prospective clients must consider all relevant risk factors involved with each strategy, including costs or fees, and their own personal financial situations before trading.
The views outlined in the book, Keen on Retirement Engineering the Second Half of Your Life, are those of the author and should not be construed as individualized or personalized investment advice. Any economic and/or performance information cited is historical and not indicative of future results. Economic forecasts set forth may not develop as predicted.
The Amazon Best Seller ranking listed on marketing materials is specifically referring to Best Seller rankings for the Kindle Top 100 Paid Lists under the subcategories of: Budgeting and Financial Risk Management, based on data as of September 5, 2019 and the second edition under Financial Risk Management on October 26, 2022. Amazon rankings although relevant on how a product is selling overall doesn’t necessarily indicate how well an item is selling among other similar items or similar item categories. Amazon may choose the most popular categories or subcategories within which an item has a high ranking to determine its best seller rankings. These rankings are updated hourly and as a result, should be expected to fluctuate as such. Keen Wealth Advisors and Amazon are not affiliated entities.
The Steve Sanduski Advisor Network, Belay Advisor, LLC and other third-party contributors to our blogs and podcasts are not affiliated with Keen Wealth Advisors.
For additional details on Keen Wealth Advisors, please visit https://www.keenwealthadvisors.com/important-disclosures.
22021214-2640170