A Retirement Crisis No One Talks About

What happens when the financial math adds up, but the lifestyle doesn’t?

You spend decades building wealth, but how do you build a life worth spending it on? In this blog, we ask this very question and provide our thoughts on the answer.

Most people approach retirement like a math problem: crunch the numbers, hit the target, and you’re good to go. But it turns out that financial readiness is only part of the equation. At Mana, we believe the real value lies in designing a life you want to live— one built around your interests, routines, and relationships.

And we’re not just making this up. Michael S. Finke, Professor and Frank M Engle Chair of Economic Security Research at the American College and one of the foremost researchers on retirement well-being, has spent years studying what actually makes retirees happy. The results? Thoughtful planning, strong relationships, and purposeful living make all the difference.

Let’s dive into what the research says—and how you can start building a retirement dream you can’t wait to wake up to and live.

The Retirement Paradox: Why More Money Doesn’t Always Mean More Happiness

You know the story: work hard, save harder, hit that magical "number" and coast into retirement bliss. But reality tells a different story. Many retirees hit their financial goals and still feel... off. Lost. Unfulfilled.

Why? Because while they were busy climbing the career ladder, they weren’t planning for what comes *after* the climb. Finke's research shows that life satisfaction does indeed increase in retirement, and that this is especially true if the decision to retire is voluntary. But real fulfillment doesn’t just happen. It’s built. Purposefully.

Invest In Imagination: Why Lifestyle Planning Is As Critical As Financial Planning

One of Finke’s biggest insights? The happiest retirees are the ones who invested in imagining their life after work—well before they left their jobs. He calls it "investing in imagination."

What does that mean? It means asking yourself real questions like:

- What does a perfect Tuesday look like without meetings and deadlines?

- Who will I spend my time with?

- What activities make me lose track of time?

Retirement satisfaction increases when you plan proactively for your lifestyle, not just your budget. This includes how you’ll find purpose, maintain relationships, and stay active—mentally, emotionally, and physically.

Relationships: The True Wealth of Retirement

According to Finke's research with Naht Ho and Sandra J. Huston, relationships are one of the strongest predictors of happiness in retirement. Retirees with close friendships and meaningful connections report significantly higher life satisfaction. In fact, the number of close friends and the frequency of contact had a larger impact on well-being than many financial factors.

And here’s something we love to emphasize: women often fare better in retirement because their friendships tend to be deeper and more emotionally supportive. Men, on the other hand, often see their social circles shrink—especially those in high-level white-collar jobs. The takeaway? Start nurturing those relationships now.

The Health Factor: Your Greatest Retirement Asset

Retirement is only fun if you’re healthy enough to enjoy it. Finke’s research shows that retirees in poor health experience far lower life satisfaction, regardless of wealth. That’s why we encourage our clients to think of health as a financial asset.

Exercise, nutrition, regular check-ups, mental stimulation—these aren’t just good habits, they’re investments in your retirement happiness. We help our clients design lives that prioritize wellness, because living longer only matters if you’re living well.

The Science of Spending: What Actually Makes Retirees Happy?

Finke’s findings challenge a lot of traditional thinking. For example, people often think they’ll need less money in retirement. But the happiest retirees actually spend *more* on things like leisure, experiences, and connection—not less. His research found that spending on leisure had one of the strongest correlations with retiree happiness.

So yes, your future budget should include the art classes in Tuscany, the fishing trips with grandkids, the yoga retreats, the salsa nights. These are not luxuries—they’re the backbone of a joyful retirement.

Grasshoppers vs. Ants: Understanding Your Spending Personality

In his research, Finke also breaks retirees into two categories: Grasshoppers (who spend more freely) and Ants (who remain frugal). Unsurprisingly, many Ants struggle to transition from saving to spending.

That’s why emotional readiness is so important. You need to understand not just your portfolio, but your own psychology around money. At Mana, we help you reframe retirement spending as a return on decades of investment—because you earned it.

Cognitive Decline and Financial Confidence

Here’s a sobering truth from Finke's work: financial literacy and confidence both decline with age. That means the DIY investing strategy that worked for you at 45 might be dangerous at 75.

We advocate for proactive planning that builds in safeguards, simplifies decision-making, and sets up systems for long-term success. Having a team you trust becomes essential. (Hint: that’s us.)

Building Your Three-Act Retirement

We love Finke’s framing of retirement as a dynamic, evolving journey. At Mana, we see it play out all the time. Retirement isn't a one-act play. It's more like a trilogy:

Act I: The Reinvention (60s to early 70s)

You're active, adventurous, and ready to explore new passions. Spending is high, and life feels like a second adolescence. Let's plan for it!

Act II: The Legacy Years (Mid-70s to early 80s)

You're more rooted, focused on family and community. Your spending might slow, but your desire to make an impact deepens.

Act III: The Life Review Years (80s and beyond)

Your energy shifts inward. It's time to focus on care, connection, and legacy. Your plan should evolve with you.

The Mana Retirement Lifestyle Game Plan

So how do we help you create a life that feels amazing to live? Here’s our five-part approach, infused with insights from Finke’s research:

1. Visualize Your Life

We guide you through envisioning your ideal lifestyle—not just what you want to escape from, but what you want to run toward.

2. Audit Your Social Wealth

We can help you assess your relationships and create a strategy to maintain and grow your social life post-retirement. Friends don’t just happen—they need time and intention.

3. Prioritize Your Healthspan

Your health goals should absolutely be part of your financial life plan, including budgeting for wellness, healthcare, and potential long-term care.

4. Build a Spending Plan That Sparks Joy

We align your budget with your values and help you spend on what brings the most meaning. That might be a cabin in the woods, salsa classes, or a family reunion every year.

5. Future-Proof Your Finances

We simplify your financial life, create decumulation strategies, and build in resilience for cognitive decline, market volatility, and rising healthcare costs.

The Bottom Line

Retirement isn’t about having enough to live *on* – it’s about having enough to live *for*. Michael Finke’s research confirms what we’ve long believed at Mana: money matters, but a meaningful life matters more.

So yes, keep saving. But also start dreaming, connecting, and designing. Because a great retirement isn’t just an ending. It’s a beautifully imagined, well-executed next act.

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Stephanie Bucko and Cristina Livadary are fee-only financial planners based in Los Angeles, California. Stephanie is the Chief Investment Officer and Cristina is the Chief Executive Officer at Mana Financial Life Design (FLD). Mana FLD provides comprehensive financial planning and investment management services to help clients grow and protect their wealth throughout life’s journey. Mana FLD specializes in advising ambitious professionals who seek financial knowledge and want to implement creative budgeting, savings, proactive planning and powerful investment strategies. As fee-only fiduciaries and independent financial advisors, Stephanie and Cristina never receive commission of any kind. Stephanie and Cristina are legally bound by their certifications to provide unbiased and trustworthy financial advice.