Retirement isn’t a finish line; it’s a journey. And like any good journey, it comes in stages. Over the years, we’ve walked many families through this process, and we’ve seen firsthand how every phase brings its own set of questions, joys, and adjustments.
Let’s break down the three main stages of retirement so you can plan with confidence and peace of mind.
1. The “Go-Go” Years: Active and Independent
This is the chapter most folks picture when they dream of retirement. Spontaneous rounds of golf, weekend trips to wherever we end up, sleeping in on a weekday… (priorities, right?).
- What to expect:
- More travel, hobbies, and time with family
- Higher discretionary spending (think trips, gifts, and grandkids)
- Health is generally good and independence is high
- Planning tips:
- Make sure your cash flow supports your lifestyle and is managed with lifetime taxes in mind
- Consider various sources of income, when you can expect them, and adjust your strategies as retirement progresses and circumstances change
- Ensure you’ve fully thought through healthcare decisions before and into Medicare; your future self will be very grateful
- Consider the risk of a long-term care event for you and your family; take time to review and understand ways you can insure against this risk
2. The “Slow-Go” Years: Settling In
As the years roll on, routines settle. Travel may slow but life is still rich with meaning. You may find you have more time to spend with loved ones, to volunteer, or to simply enjoy a slower pace.
- What to expect:
- Spending typically decreases as travel and big-ticket activities taper off
- Health care becomes a bigger focus, but independence remains
- Planning tips:
- Consider your income sources and ensure they are still meeting your needs
- Adjust budgets for less travel, but plan for possible increases in health care costs
- Look at your living arrangements and consider if you’re in your “forever home” or if a move makes sense – one-level, master on main, or just to be closer to loved ones
3. The “No-Go” Years: Care and Comfort
Eventually we may need more support, whether it’s help at home or a move to assisted living.
- What to expect:
- Medical and long-term care costs may rise
- Spending on travel and entertainment drops; health and personal care needs increase
- Planning tips:
- Make sure your estate and health care documents are in order
- Communicate openly with family about wishes and plans
- Engage trusted family members or friends as you navigate tough decisions
Final Thoughts
The concept of reaching financial independence later in life is deeply personal. Your journey may look much different from your neighbor’s, and that’s okay! The key is to anticipate each stage, stay flexible, ask questions, and seek guidance along the way.