How young you feel can significantly influence how you handle your money. This is a concept that has gained traction among financial experts, who suggest that the age you feel, rather than the years you’ve accumulated, plays a crucial role in how you save, spend, donate, and plan for the future. A recent article in The New York Times delves into this idea, exploring how people’s perceptions of their own vitality impact their financial decisions.

For many older adults, feeling younger than their chronological age has become a common refrain. While young parents might feel exhausted by the demands of raising children, their own parents—if in good health—often report feeling youthful, energetic, and ready to take on new challenges, even in their 60s, 70s, or beyond. This sense of vitality influences not only their lifestyle choices but also their financial behavior.

The Impact of Feeling Young on Financial Decisions

The notion that feeling young affects financial decisions is supported by research and observations from experts like Chip Conley, founder of the Modern Elder Academy. Conley notes that even those in the lower middle class begin reassessing their finances in their 50s if they are in good health, preparing for longer lives than they might have originally anticipated. This reassessment isn’t a one-time event; it’s an ongoing process that continues well into later life.

Ken Dychtwald, chief executive of Age Wave, a research and consulting firm focusing on aging, observes that people who feel fit and energetic often plan for a longer financial horizon. “People who feel fit and that they’re at the top of their game will probably imagine that they have a long horizon in front of them,” Dychtwald says. “That’s good news and bad news. They may not fall prey to an illness, but they’re going to live a long time, so they’ll need more money.”

This mindset leads many older adults to work longer, take on side projects, or even start new ventures later in life. They’re doing this while enjoying activities typically associated with younger individuals, such as traveling and exploring new hobbies. In a sense, they’re living with the freedom and fearlessness often attributed to twenty-somethings, but with the added wisdom and financial savvy that comes with age.

Reframing Retirement and Financial Planning

The changing perception of age and vitality is reshaping how people think about retirement and financial planning. Gone are the days when retirement meant completely stepping away from work at 65. Instead, many older adults are finding that part-time work, consulting, or even entrepreneurship is not only desirable but necessary to maintain their financial security and lifestyle.

“We try to help people understand that the way we live today, you’re going to have a lot of adult life ahead of you, so don’t get caught up on how Social Security is going to support you,” says Conley. “You’re not going to retire at 65. You’re going to have part-time work by desire or need.”

This shift in perception encourages older adults to remain both youthful and pragmatic in their financial decisions. A key part of this new approach is the understanding that continuing to earn money in some capacity later in life is crucial. For example, someone might supplement their Social Security income by becoming an Airbnb host, offering consulting services, or starting a small business.

The Role of Self-Control and Financial Planning

While feeling young and maintaining an active lifestyle can lead to more dynamic financial planning, self-control remains a critical component of financial security. Many older adults who are able to spend freely in their later years developed strong savings habits early in life. Others, however, may experience a “binge savings” phase in their 60s as they come to the realization that they need to prepare more thoroughly for their financial future.

Kelly Goldsmith, an associate professor of marketing at Vanderbilt’s Owen Graduate School of Management, notes that this late realization is not uncommon. “You see people get into binge savings in their 60s,” Goldsmith says. “What that suggests to me is as you approach your retirement years, you understand I’m going to be the same person 10 years from now.”

For those approaching retirement, it’s important to consider how much income will be needed to sustain their desired lifestyle. AARP suggests aiming for an income that is 70 to 80 percent of what you were earning before retirement. However, if extensive travel or other costly activities are planned, that number might need to be closer to 100 percent.

As you consider your financial future, ask yourself: How does the age you feel influence your financial decisions? Are you planning for a future that aligns with the vibrant life you envision? Join the conversation and share your thoughts in the Age Brilliantly forum.