Pensions May Be the Key to a Happy Retirement
What’s the key to a happy retirement?
Is it a regular golf game, or a home on the beach? While those perks can certainly help, new research shows that a pension—i.e. a steady stream of income well into retirement—may be the answer.
According to Britain’s first national happiness survey conducted by the Office for National Statistics, the highest happiness scores came from retirees aged 65-69 who receive pensions. These retirees scored a 7.8 on a 10-point scale, only matched by teenagers, who have likely not yet experienced financial strain.
While it was only Brits polled in the survey, the results have universal implications: Financial stability is necessary for a happy retirement.
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The survey’s findings are expected to prompt new legislation in Britain, but Time Moneyland notes that United States policymakers and employers already have plans in the works. New measures aim to simplify the process for workers to convert their 401(k) assets into lifetime annuities, which have recently gained popularity because of the stream of income they guarantee well into retirement and are offered by large insurance providers.
In addition to the survey’s findings about retirement, the ONS identified owning a home and living in a rural area as factors that contribute to greater happiness.