Stages of Retirement

Think of retirement as a process rather than a single event. There is a before, during, and after that involves much more than just money. Check out these three main stages of retirement and determine which one best describes your situation. Then, let us help you create a personalized strategy to suit your unique needs.

Stage 1 - Prepare

Most people find themselves thinking about retirement around age 50. The transition from working and saving to retirement and spending can be very challenging. As you look to the future, you need a solid plan to replace that paycheck and the social and intellectual stimulation of your work. 

This is a stage of accumulating wealth, eliminating debt, and building a cash reserve. Beyond the calculator, this is also the stage to create your vision of life after work. You will need to reflect on how you will spend your time and how your social structure may change. It’s time to create what you want your next chapter to be. As we like to say: What is your next?

Stage 2 - Purpose

This is a critical phase where many people fear they will lose their identity.
At this stage, reality sinks in and structure becomes more important. Think about your passions and what activities you enjoy doing. Using some of your extra time to learn a new skill or give back to the community can help with a sense of purpose—one of the most important psychological aspects of retirement. It’s okay if it takes a few attempts before you find the right fit. What’s important is to try. There’s a solid connection between volunteering and mental and physical health benefits. Read more about these benefits...

After all, you may be leaving your job, but not your gifts, talents, or professional skills.

Stage 3 – Prosper

At this stage, you’ve been retired for a few years. You have a rhythm to your day, your budget is working, and there is a nice balance to life. You are financially comfortable. That makes it an ideal time to think ahead, again. 

Most of us want to remain independent as long as we are able. Issues such as long-term care, wills and estate planning, or downsizing your home are all items to consider while you’re at the top of your game. We are here to help you prosper in all areas of life.

Contact Peggy Farnworth, CPA, CFP
for a complimentary consultation today