Social connections are a frequently overlooked but crucial element to a happy retirement. While financial planning is undeniably important, many Americans neglect to prioritize friendships and social interactions when considering their future (and present) happiness. Simply put, happy retirees have more social connections than unhappy retirees, and Americans today need reminding of this importance and how to nurture these relationships.
Comparing 1990 to 2021
An American Perspectives Survey (APS) found that nearly half (49%) of all Americans report having three or fewer close friends. The APS was administered nationally, receiving data from 2,019 adults utilizing Ipsos’ probability-based online KnowledgePanel, the oldest and largest probability-based online panel in the U.S. These eye-opening numbers illustrate a sharp decline from a 1990 Gallup survey showing less than one-third (27%) of Americans reported having three or fewer close friends.
In 1990, only 3% of Americans described themselves as having zero close friends, whereas that number rose to 12% in 2021. Even the social butterflies seem to have diminished—roughly 33% reported having 10 or more close friends in 1990, but only 13% said the same in 2021.
In other words, it appears Americans became far less socially connected in the three decades between 1990 and 2021.
What The Happiest Retirees Know
The 2021 APS was conducted online, and the 1990 Gallup survey was administered over the phone. Can those different methodologies explain away the drop in social connection? My own research would suggest no. Sourcing data for What The Happiest Retirees Know: 10 Habits For A Healthy, Secure, And Joyful Life required asking nearly 2,000 American retirees a set of 35 questions about habits and behaviors and then an additional survey in 2021 specific to habits regarding social connectedness. While it became apparent that there were diminishing marginal returns and a plateau effect to finding happiness through higher income levels, the opposite was true with close social connections and friendships. Those seemed to correlate directly to higher happiness with no ceiling or limitations. When it comes to close connections, more appears to be better.
The magic number for happy retirees is between three and four close connections, averaging 3.6, while unhappy ones landed at 2.6. The data show that retirees with three close connections are two times more likely to be happy retirees, while those with five close connections are four times more likely. It’s not feasible to become best friends with everyone in your life, but within reason, more connections can be exponentially impactful to retirement happiness.
Friendship Goals And Social Groups
Seeing a friend about once a month seemed sufficient for maintaining a healthy connection. There is no need for everyday attention, but getting together once per year at Christmas or sending comments over social media don’t quite do the trick.
Another factor to consider is how many social groups you belong to, such as pickleball teams, church groups, cycling groups, and book clubs. My data showed that happy retirees benefit from belonging even to just one. While membership to more wouldn’t hurt, it didn’t appear necessary because social connections beget more social connections.
The Wall Street Journal made a case against early retirement, with one of its reasons being that retirees struggle once they no longer have an office environment to catalyze connections with multiple tangential crowds. And yes, that dynamic can indeed be challenging to recreate. But social groups are one antidote.
Travel
A significant way to boost connection is traveling with friends. Planning a getaway with a manageable number of companions lends itself to an abundance of quality time that can lead to more authentic and deeper connections. Think of it as a concentrated dose of bonding. In fact, traveling on three or more occasions with friends increases the likelihood of retirement happiness by more than four times.
Bottom Line
Albert Einstein reputedly called compound interest the Eighth Wonder of the World. If he found that much joy in letting his money work for him, one can only imagine how delighted he would’ve been to compute social connectedness’s compounding effect on overall retirement happiness.
Social connections are an essential part of the happiness formula. Without a social epicenter, the chances of becoming or staying a happy retiree drop dramatically. So put in the time and effort, pack for that trip, and let that compound happiness accrue.
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