Will More Money Actually Make You Happier in Retirement?

It’s a question worth asking: would more money actually change your life? Would you buy a different car? Move into a bigger house? Eat out more often? Or would life look much the same as it does today?

This isn’t just hypothetical. I ask this question to clients all the time. Many have already accumulated significant wealth, and when I pose the scenario, “If you had an extra million, would it change your life?” The most common answer is no. They like their lifestyle, they live within their means, and their house is paid off. More money wouldn’t fundamentally change how they live.

Why Keep Chasing?

If that’s the case, then why keep chasing more? Why take unnecessary risks in the markets if your lifestyle wouldn’t really change?

I often remind people of a point I made in another video: You Won The Game! Why Are You Still Playing?

Markets are volatile. They go up and down. Advisors and TV pundits will tell you to ride it out. And yes, historically, markets have recovered over time. But if you don’t actually need more money to live the life you want, why expose your savings to that roller coaster?

Living Off the Interest

Today’s interest rate environment makes this question even more pressing. With CDs, Treasuries, and Multi-Year Guaranteed Annuities (MYGAs), many people can generate solid interest income without ever touching their principal.

For example, a 5% MYGA on $500,000 pays $25,000 annually for five years. At the end, you still have your $500,000 intact. Add that to Social Security, which remains the best inflation-adjusted income stream available, and other income sources, and many retirees can comfortably cover their needs without market risk.

How Much Do You Really Need?

This isn’t about keeping up with the neighbors or chasing the next hot investment. It’s about defining what “enough” looks like for you and your family.

For some, that number is $200,000. For others, it’s $2 million. Whatever the number, once your income floor is secured through Social Security, pensions, and guaranteed interest, you don’t need to gamble with your principal.

Remember, flashy lifestyles don’t always equal wealth. Often, the loudest people at the party bragging about their money are heavily leveraged. True financial confidence comes from security, not showmanship.

Focus on Living, Not Chasing

The reality is that most people don’t need more money to change their lifestyle. They just need to use what they already have more intentionally.

That might mean traveling more, driving a nicer car, or dining out a little more often. But in many cases, those goals are already within reach and without extra risk.

Life is short. There are no U-Hauls behind hearses. Retirement has three phases: go-go, slow-go, and no-go. If you’re in your go-go years, use your resources to enjoy life now. Stop chasing returns and start living on your own terms.

Final Thoughts

If you had more money, would your life really change? For most, the honest answer is no. So, ask yourself: why keep putting your principal at risk if you don’t need to? Why stay on the market roller coaster if your lifestyle is already secured?

With guaranteed income streams, Social Security, and the ability to live off interest, you can stop chasing the dream of “more” and start enjoying the life you’ve already built.