Skip to main content
Select Image

Planning for Different Stages of Retirement

Retirement is a new chapter in life that brings both excitement and a need for careful planning. As you prepare for this journey, it's important to have a solid understanding of the different stages of retirement and how to navigate each one.

Let's review the key considerations for planning during each stage of retirement to ensure financial security and peace of mind.

Beginning the New Journey

The first stage of retirement marks the transition from a working life to a life of leisure. During this time, it's important to realign your (potentially) lower income and investments with new expenses and needs. Take a look at your financial situation and create a budget that reflects your new lifestyle. Consider things such as housing, family care, and leisure activities when planning your budget.

This stage presents an opportunity to explore new hobbies and travel experiences. Allocate a portion of your budget to indulge in these interests, while keeping in mind the overall financial plan for the long term. Adjusting to a new routine and finding the right balance between enjoying retirement and managing finances is key during this initial stage.

Settling In and Getting Comfortable

As you settle into your new retirement lifestyle, it's important to regularly assess and make adjustments to your financial plan. Think about how various factors may impact your retirement income. What plans do you see yourself having in the near future?

Downsizing may be a conversation that comes up, for some the focus may be on staying closer to family and for others this may be the time to move to a house on the lake. Wherever you see yourself, determine if your retirement income can support those goals and can align with the associated expenses.

As you start relying on your assets, it's important to adjust your portfolio for increased security and income generation. While doing so, continue growing your savings for the later years of retirement. It's important to be aware of the risks that come with investing in the market. Make sure to regularly review and adjust your portfolio with the help of a financial advisor to make sure it matches your comfort level with risk and aligns with your retirement goals.

Future Years

As you progress through retirement, it becomes essential to plan for future healthcare and medical costs. Health expenses tend to increase with age, and having a strategy to manage these costs will help safeguard your financial well-being. Explore options such as long-term care insurance or health savings accounts to provide a safety net for potential healthcare needs.

Planning for different stages of retirement is a continuous process that requires adaptability and foresight. By understanding the considerations and challenges that arise in each stage alongside regular financial checkups you can make informed decisions that help you avoid outliving your savings. Book an appointment today.

Need advice? Just ask.

Select Image

Retirement Calculator