Why older people are happier

Posted May 24th 2007 6:30PM by Peter Cohan
Filed under: Personal Finance

Happiness increases with age, according to a study conducted for HSBC Holdings plc (NYSE: HBC) and reported by MarketWatch. What is happiness? Why does it increase with age?

This study implicitly defined happiness as a combination of health, freedom from financial worry, and control over one's life. According to the study, a majority of people in their 60s and 70s report being healthy and in control of their lives -- and as happy as many respondents in their 40s. This is the key finding of HSBC's survey of 21,000 people in 21 countries and spanning four age groups, each decade from age 40 to age 80.

Health is surprisingly good but varies by country. Overall, just 14% of those 60 to 79 in the U.S. said they're in poor or very poor health, while 86% say they're in fair, good or very good health. Poor health is lower in some countries -- Brazil (10%) and Mexico (10%) -- and higher in others -- Asia (18%), South Africa (32%), Russia (35%) and Turkey (35%).

Freedom from financial worry seems to rise with age. The survey suggests that the percent of respondents who are not worried about coping financially is greater as individuals approach the end:

40s: 42%
50s: 48%
60s: 57%
70s: 60%

And control over one's life is high among oldsters -- particularly in the U.S. For example, among U.S. respondents, 79% of those in their 70s who work say it's because they want to, versus 21% who feel they must continue to work.

It seems a shame that happiness is something that is most common among the old -- since there's so little time to enjoy it. This makes me think that the world would be happier if more people could achieve financial independence while they're young.

Unfortunately, that's easier said than done.

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in HSBC.

Tags: financial independence, financial security, FinancialIndependence, good health, happiness, HBC, HSBC, HSBC Holdings, oldsters, surveys

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Reader Comments (Page 1 of 1)

5-25-2007 @ 1:01AM

jim said...

Just when the fruits of your life, money, is available, the sucessful attach to some young people and forge substantial projects. The 60-75 year olds have the equity, and if they find trusting younger people with promise, they fund them and push them along often making them partners.

This is how it should be to share the wealth with those who shall carry on long after they are gone and in some cases with a legacy.

5-24-2007 @ 9:35PM

Meg said...

Perhaps they're happier because they've got less time left in this money hungry world???

5-24-2007 @ 10:56PM

Peggy J Simmons said...

As one of those persons who is over 60, may I just say I've always maintained that happiness in itself is much overrated since one cannot appreciate the term without knowing it's opposite. It's the individual who decides what will make his/her life make sense. Contentment was always my goal, freedom from stress (money worries, negative persons, a bad health situation are examples) would make me 'happy'. What has worked is looking back over a lifetime and acceping where I've been and how I arrived at the present. I accept the choices I've made and that they were made in good conscience based on the information I had. I empathize with those who continue to feel life has dealt unfairly with them.
Life continues to be filled with learning materials and I avail myself often. My children are adults and responsible for themselves and must learn for themselves what will make their life worth living. I'm no Pollyanna and have done my share of feeling self-pity but I hope I accept the next 20-30, maybe 40, years with equal honesty.

5-24-2007 @ 11:17PM

plsagala said...

i was always happy even when i was young and making little money. now that i am older and retired at the age of 50 with 60,000 a year andlifetime medical coverage i am even more happy

5-25-2007 @ 2:34AM

Kathie Roberts said...

Happiness at any age is a state of mind. Life can throw you some curves but that doesn,t have to alter the way you feel in your heart. I am 71 and if I didn,t live another day I would still feel blessed. I have four wonderfull children-13 great- grandchildren and two greats ! God has blessed me with a wonderfull husband also. No I am not rich in material things but I do believe I am happy !