Retirement Planning: Getting and Staying on Track

It’s both a financial and lifestyle transition, and the planning you do along the way can influence your long‑term financial security. Whether you’re in your 50s and still building, or in your 80s and focused on stability, the key is to plan ahead and adjust as life evolves. At its core, retirement planning means coordinating your income sources, savings systems, healthcare decisions, and investments so they continue supporting you across each stage.

While everyone’s path looks different, most people end up working through a similar set of considerations—when to claim benefits, how to structure income, how much to save, which accounts to use, and how to invest for both growth and stability. You’ll revisit these decisions more than once, and they tend to guide the choices you make in each stage of retirement.

Here’s how those decisions often show up across the different phases of retirement.

Pre‑Retirement (Ages 50–62): Building Momentum

These are often your highest‑earning years, and the choices you make now set the tone for decades to come.

• Maximize savings: Take advantage of higher contribution limits and catch‑up provisions. For 2026, the IRS raised the 401(k) elective deferral limit to $24,500.[1] Even small increases in contributions can compound meaningfully over a decade or more.
• Know your costs: Estimate what retirement may cost, including housing, healthcare, and lifestyle goals. Fidelity’s report shows a 65‑year‑old retiring in 2025 spent $172,500 on healthcare, and that number is expected to rise in part due to Medicare Part B premiums increasing.[2]
• Model Social Security timing: Begin modeling different start ages. Benefits increase by about 8% per year if you delay past full retirement age.[3] This tradeoff (smaller checks sooner or larger checks later) is one of the most important timing decisions in financial planning and retirement.
• Review cash flow: Redirect discretionary dollars toward savings and debt reduction.
• Plan the fun: Think about how travel, hobbies, or an early‑retirement lifestyle will fit into your budget.
• Address healthcare coverage before 65: Understand how you’ll bridge the gap before Medicare eligibility.
• Update estate planning documents: Update wills, trusts, and beneficiary designations.
• Evaluate long‑term care options: Consider insurance or savings strategies while costs are still manageable.

Early Retirement (Ages 62–70): Transitioning Income

This stage is about replacing your paycheck and shaping your new lifestyle.

• Design an income plan: Coordinate Social Security, pensions, withdrawals, and any annuities to create steady cash flow. This is where financial security and retirement planning intersect most clearly, balancing reliable income with flexible portfolio withdrawals.
• Make Medicare decisions: Enrollment choices at 65 can affect coverage and costs for years to come.
• Plan lifestyle activities: These “go‑go” years are often the most active. Budget for travel, hobbies, and family time.
• Address longevity risk: Consider how your plan addresses the possibility of living longer than expected; the most recently compiled CDC data shows U.S. life expectancy rebounded to 78.4 years in 2023.[4]
• Mange cash flow: Track spending carefully to avoid overspending early.
• Consider where you will live: Evaluate whether a smaller home or relocation is a possibility.
• Review and refresh estate plan: Update documents to reflect any new circumstances.
• Reassess long‑term care needs: Revisit your plan as health needs evolve.

Mid Retirement (Ages 70–80): Managing Complexity

By this stage, the focus shifts to required distributions, healthcare, and simplifying finances.

• Create a tax‑efficient withdrawal strategy for RMDs at 73 (or 75 depending on birth year)
• Protect longevity needs: Reassess whether your income sources remain sufficient for your needs.
• Plan for healthcare costs: Anticipate rising medical needs and costs.
• Simplify finances: Consolidate accounts, automate payments, and reduce complexity.
• Evaluate your home: Decide if your current living situation will serve you for the next decade.
• Make long‑term care decisions: Make concrete decisions about coverage, facilities, or family support.

Late Retirement (80+): Preserving Stability and Support

In later years, priorities shift toward stability, healthcare, and legacy.

• Assess income stability: Assess whether predictable income sources cover essential expenses, with portfolios supporting discretionary needs.
• Review healthcare and Medicare coverage: Stay current on coverage and supplemental options.
• Formalize long‑term care preferences: Document your wishes clearly to guide family and caregivers.
• Revisit estate and legacy plans: Finalize plans to reflect your values and support smoother transitions.
• Simplify cash flow: Streamline accounts and payments for ease of management.
• Build a support system: Strengthen relationships with family, advisors, and community resources.

The Bottom Line

Retirement is a progression, each stage with its own financial and lifestyle decisions. The most resilient plans aim to have essential expenses covered by guaranteed income sources (such as Social Security, pensions, or lifetime‑income products) while investment portfolios provide the flexibility, growth, and discretionary spending power to adapt as needs and priorities evolve. A thoughtful approach to financial planning and retirement can help you stay confident through each transition. Because your needs will shift over time, revisiting your timing, income sources, savings habits, account structure, and investment approach can help keep your plan aligned with your life.

If you’re wondering whether you’re on track, or how to balance guaranteed and flexible income across these stages, reach out to your Modera advisor. We can help you design a plan that evolves with you and helps support a retirement that is both secure and fulfilling.