Living Longer, Wealthier, Healthier—and Yet, More Unhappy?

We’re living in extraordinary times. In general, humans are healthier, wealthier, and living longer than ever before. Life expectancy in many developed countries exceeds 80 years, global poverty has significantly declined, and advances in healthcare mean we can treat or even prevent diseases that were once death sentences. 

And yet,, happiness isn’t keeping pace. Studies reveal that despite these material and physical gains, self-reported happiness has stagnated—or even declined. What gives? 

The Great Happiness Paradox 

Research from the World Happiness Report shows a puzzling trend: despite better living standards, happiness levels have plateaued in many high-income countries. In the U.S., for example, economic growth over decades hasn’t led to increased happiness. 

The issue isn’t just about what we have; it’s about how we feel about our lives. Evidence suggests a critical piece of the puzzle is a growing lack of purpose and meaning in our lives, leading to a happiness gap that health and wealth alone can’t fill. 

Purpose and Self-Determination Theory 

Purpose is one of the cornerstones of Self-Determination Theory (SDT), a psychological framework developed by Edward Deci and Richard Ryan. SDT posits that humans have three basic psychological needs: 

1. Autonomy – The sense that we are in control of our own choices. 

2. Competence – The feeling that we’re good at something and making progress. 

3. Relatedness – The sense of connection and belonging to others. 

When these needs are fulfilled, we experience greater well-being and motivation. But when they’re lacking—when autonomy feels like a pipe dream, when we’re adrift without mastery, or when we feel disconnected—happiness suffers. 

In modern life, many of us excel at “doing,” but struggle with “being.” We work harder to accumulate wealth and status, yet fail to cultivate autonomy, competence, and meaningful relationships. 

Happiness Without Purpose Is Fleeting 

Individuals with a strong sense of purpose are not only happier, but also live longer and are healthier. Purpose serves as a psychological anchor, providing direction and resilience, especially during challenging times. 

But here's the challenge: our modern world often strips us of opportunities to fulfill our SDT needs.

·      Technology can alienate us from face-to-face relationships.

·      Societal pressure can undermine autonomy.

·      Repetitive work can dull our sense of competence. 

What Can We Do? 

For individuals and financial advisors guiding clients, reconnecting with purpose and these three psychological needs is key. Here are some actionable steps: 

 1. Cultivate Autonomy 

Reflect on whether you’re living according to your values or societal expectations. Financial advisors can help clients align their spending and investing with their personal goals and values, enhancing autonomy. 

 2. Foster Competence 

Set achievable goals and celebrate progress. Small wins boost confidence and build momentum, whether in personal finance, career, or hobbies. 

 3. Deepen Connections 

Prioritize meaningful relationships over superficial interactions. Building community—whether through shared financial goals, volunteering, or hobbies—fuels happiness and resilience. 

 4. Rediscover Purpose 

Ask “why” before saying “yes.” Whether it’s a major purchase or a career move, reconnecting decisions to a larger purpose prevents the treadmill of aimless accumulation. 

 5. Embrace Lifelong Learning 

Staying curious and continually learning keeps our minds engaged and builds competence. For advisors, encouraging clients to explore passions can help reignite a sense of purpose. 

What are you/your clients retiring TO?

My mom and I talk about this all the time. Her peers are beginning to retire, and she sees their lack of purpose and in many cases, depression, lack of connection, and physical health issues. Retirement poses a unique challenge to this balance. Without the structure, purpose, and social connections of work, many retirees are more suspectable to declining physical and mental health. Research shows that individuals who lack purpose in retirement are at a higher risk of depression and even earlier mortality. Finding ways to replace the sense of meaning that work once provided is crucial for maintaining health and happiness in later years.

For more about my work, visit me at CharlesChaffin.com or our programs (and the new Money and Risk Inventory™) at PsychologyofFinancialPlanning.com

 Sources 

1. World Happiness Report 2023. 

2. The Lancet, Purpose and Longevity: A Study on Happiness and Health. 

3. Deci, E. & Ryan, R. Self-Determination Theory: A Macrotheory of Human Motivation. 

4. Pew Research Center, Trends in Happiness in the U.S.