As a BMW driver, I was slightly perturbed to read at the weekend that this particular marque is the most popular choice for unhappy retirees.
The finding was the outcome of research by a fellow Certified Financial Planner in the US, Wes Moss, who surveyed 1,300 retirees about their car ownership and happiness in retirement.
Wes found that the most common luxury car brand owned by unhappy retirees was a BMW.
He concluded that the correlation between driving a Beemer and having an unhappy retirement could be less to do with the car itself and more about the impression it leaves on others.
This is because, he suspects, BMW drivers are ‘still competing’.
According to Moss, “they buy the ‘Ultimate Driving Machine’ because they’re looking for a distraction — a high-end status symbol to make them feel better about themselves,”
“But in purchasing a car, they have opted, either knowingly or unknowingly, to add an additional financial burden to their lives.”
The best luxury car choice for happy retirees? That would be a Lexus, according to the research.
Moss found that owning a Lexus costs 16% less than BMW ownership over a five year period, which could contribute to a happier driving experience.
Looking at non-luxury car brands, Nissan and Subaru were top choices for happy retirees, and Chrysler and Dodge for those unhappy in retirement.
Whether there is genuinely a correlation between choice of car brand and happiness in retirement or not, car choice in retirement is an important consideration.
Thinking about the total cost of ownership is important during a time in your life where you are likely to be living on a fixed income and have limited opportunities to replace spent capital.
Factor cars and the cost of ownership into your Financial Plan as you approach retirement, and improve the chances of staying happy.
