​Four Lessons for a Happy, Successful and Wealthy Retirement 

(Image credit: Getty Images)Christine Benz is director of personal finance and retirement planning for Morningstar and author of How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement (see a related podcast at Morningstar).Benz devotes a chapter each to advice from 20 specialists in all aspects of retirement, from social and healthy living to income, investing and taxes. I spoke with Benz about highlights from her book.Foster relationshipsOne key point in your book is that social relationships are the most powerful predictors of longevity — more critical than even genetics or wealth. Subscribe to Kiplinger’s Personal FinanceBe a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-NewslettersProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.Profit and prosper with the best of expert advice – straight to your e-mail.That’s why it’s important to be thoughtful about maintaining and growing your relationships. Your social networks naturally winnow down as you age, but that’s not necessarily bad.Just put yourself in situations where you can have contact with a variety of people and age groups, from visiting kids and grandkids to volunteering or attending church activities. Stay in touch with faraway friends, even if it’s a phone call once a month. Exercise is good for both your health and your social relationships, so walking outside with a friend ticks a lot of boxes.Give yourself permission to spendAfter saving all their working lives, many retirees are reluctant to spend their money. How can they make the transition? Research shows that retirement spending takes the shape of a smile curve, trending downward as you age and then upward toward the end of life due to high health care outlays. But even then, a fairly small subset of people with catastrophic long-term-care costs inflate the average.So you should give yourself permission to spend more to enjoy the early years of retirement. Assuming that spending patterns will decline as you age, we at Morningstar estimate that the safe withdrawal rate to start will be more like 5% of assets, adjusted for inflation, rather than the oft-cited 4%.And you talk about setting a “worry-free number.” Instead of sweating the small stuff, give yourself permission to spend an amount every day on small purchases that you enjoy. Align your spending with things you value, even if they are different from what your peers value.And having something to look forward to is a huge component of quality of life, whether it’s a family vacation or a weekly restaurant dinner with friends.Split your assets into “buckets”How should you generate income in retirement? First, be aware of your retirement income style. Do you want safety with a steady stream of income, even though your investment portfolio will grow less over your lifetime? Or are you comfortable with a total-return appr