Lifestyle Choices Can Secure Your Retirement

January 2023

For many nearing retirement, lifestyle choices become more significant in determining their comfort level for the rest of their lives. They must decide whether it is better to make some of those choices now or have their circumstances force lifestyle changes later in retirement. That's the dilemma faced by many people who have come to enjoy their way of life, but now realize that sacrifices will have to be made in order to maintain a similar quality of life in retirement.

Even for those pre-retirees who were diligent in their efforts to accumulate retirement assets, there is a realization that adjustments will have to be made. Through a combination of recent economic events and the rising cost of retirement, a new vision of retirement is emerging for the majority of people within 10 to 20 years of retiring.

George and Maria are quickly approaching a desired retirement date and find themselves with some difficult choices over lifestyle changes. They live in a $1 million dollar home. They still carry a fair sized mortgage with a monthly payment representing 25% of their income. They also have retirement plans which were, at one point, over $1 million, but have shrunk to about $800,000 because of recent market declines.

They had always thought they would need to replace their large home with a smaller one in order to eliminate the mortgage payment. George and Maria had also discussed other lifestyle changes they could make, like driving more fuel efficient cars, vacationing closer to home, and eliminating one or two restaurant meals each week. Now, with the value of their home stagnated and their investments still down nearly 20%, they should consider gradually making those lifestyle changes starting today. George and Maria could eliminate or substantially reduce expenditures that now require as much as 45% of their current income and apply that to shore up their retirement savings.

Equally important, they will be better prepared, psychologically, for the transition into their new life stage. An increasing number of people are finding that, even with the right financial preparation, they aren't prepared for the emotional or mental shock of retirement. Much of that can be attributed to sudden lifestyle changes.

Retirement planning today should incorporate emotional preparation along with financial strategies which should include a lifestyle transition plan. Consider reducing work hours and scaling back other aspects to gradually reach a comfortable balance between pre- and post-retirement lifestyle.

Give us a call if you have retirement questions.


*Fictional characters for illustrative purposes only.


Copyright © 2023 AdvisorNet Communications Inc. All rights reserved. This article is provided for informational purposes only and is based on the perspectives and opinions of the owners and writers only. The information provided is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of the AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

Tags: 

What our clients are saying...

  • When working with a financial planner, my expectation is to work with someone who is responsive to changes and who can devise a path forward as we age for the benefit of ourselves and our children. I valued the depth of detail and explanation along with the disclosure of all the variables at play. I would certainly recommend Anthony to my family and friends!

  • I was looking for a financial planner who could provide clarity and show me the best possible way to structure and plan for my retirement. Anthony’s expertise was clearly evident. He is professional, punctual, and answered all my questions and concerns. I would definitely recommend Anthony to my family and friends.

  • We expect a Financial planner to be thorough, detailed and have a strong understanding of their clients' needs. It was a pleasure working with Anthony and his team. He delivered a tremendous package and reviewed his findings in great detail. Anthony's attention to detail, solutions, recommendations and in-depth reports provides a great deal of confidence in his recommendations. We would absolutely refer our family, friends and associates to Anthony.

  • I expect my financial planner to review and discuss my financial goals along with how my goals can be achieved. I valued Anthony reviewing my investments and the projections of what they will equate to when I reach my eventual retirement. Anthony has certainly met my expectations and I would be happy to refer my family and friends.

  • My expectation was to be provided with the best possible advice specific to my situation (as it evolves) and to be provided with objective, evidence-based solutions which will provide me with the maximum financial benefit (and peace of mind). I valued the very thorough process of gathering all pertinent information regarding my estate, pension, income and expenses in order to produce a very detailed and fulsome projection of my current and future financial situation. I really appreciate the time Anthony has taken to answer all of my questions and provide sound advice based on my goals and concerns. I am really looking forward to continuing my investment and financial planning journey with Anthony. I would certainly recommend Anthony to my family and friends!

  • We valued receiving a detailed report and explanation of our finances. When working with a financial planner, we expect to have our questions answered with adequate detail and to have a plan developed to help grow our money. Our expectations were clearly met and we would be happy to recommend Anthony to anyone looking for a Financial Plan.