Retire Happy: A Guide to Fulfilling & Connected Retirement
Psych 🧠 - 367/500
Hello Reader,
As the holiday season unfolds, I wanted to take a moment to wish you and your loved ones a Merry Christmas filled with joy, warmth, and wonderful moments.
🎄 Merry Christmas and Happy Holidays! 🎅
What is it?
This viewpoint article argues that current retirement planning, with its exclusive focus on accumulating financial capital, neglects the essential social and psychological aspects of a fulfilling retirement.
It introduces the idea of a "socio-financial process of risk sharing," emphasizing the importance of investing in relationships now to mitigate loneliness and enhance well-being later in life.
Major Findings:
Retirement planning is too focused on capital: The traditional approach emphasizes maximizing financial savings and achieving a targeted income replacement ratio, neglecting the social and psychological aspects of retirement.
Loneliness is a major risk: The author argues that a significant risk in retirement is not just financial insecurity, but also social isolation and loneliness, which can have devastating effects on mental and physical health.
Investing in relationships is crucial: Building meaningful connections now, through family, friends, and community, serves as a form of "risk sharing" that can provide support and reduce loneliness in retirement.
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What do I need to know:
Retirement planning needs a broader perspective: It should move beyond purely financial goals to encompass social, psychological, and emotional well-being.
Relationships are essential for a fulfilling retirement: Investing in relationships now can provide crucial support and mitigate loneliness later in life.
Reframing challenges as opportunities: Phenomena like Black Tax and the Sandwich Generation can be seen as opportunities for strengthening social connections and investing in relationships.
Source:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4980976