There’s something surreal about it, isn’t there?
You’ve been planning for retirement for years—decades, even—and now it’s here. That final stretch. The last day at the office is circled on the calendar. Your coworkers are starting to ask about your “big plans.” And your financial life? It’s about to change in a big way.
Here’s the thing: the year you retire is one of the most financially important years of your life. The decisions you make during this window can shape your income, taxes, lifestyle, and confidence for years to come.
So, what exactly should change in your financial plan the year you retire? Let’s talk it through.
Why Your Financial Plan Needs to Evolve with You
The plan that helped you grow your wealth during your working years isn’t always the same plan that will support you through retirement. Your income sources change. Your risk tolerance might shift. Your priorities could look different than they did a decade ago.
In other words, it’s not just about having a plan—it’s about having the right plan for where you are now.
Most people don’t glide into retirement without a few questions (or a little anxiety). That’s completely understandable. But when your financial strategy reflects this new stage of life, the uncertainty feels much easier to handle.
Where to Focus as You Enter Retirement
Rethink Your Cash Flow Strategy
One of the biggest adjustments in retirement is how you receive your income. Without a regular paycheck coming in, your money now comes from a mix of places: your retirement accounts, Social Security, pensions, or other investments.
This is where creating your own retirement paycheck comes into play. A structured withdrawal plan can give you the steady income you’re used to while helping your savings last.
You might want to:
- Time your Social Security benefits to maximize your payout, especially if you’re deciding whether to claim early or wait until full retirement age.
- Tap into taxable accounts first so your tax-deferred accounts (like IRAs) can keep growing.
- Use guaranteed income sources like annuities to cover your essential expenses, reducing pressure on your investment portfolio.
- Explore your Medicare options, including supplemental coverage.
- Think about whether long-term care insurance or other protections might make sense for your situation.
- Make sure your emergency fund is equipped to handle unexpected health-related costs.
- Reviewing your will and any trusts
- Checking the beneficiary designations on your retirement accounts and life insurance policies
- Making sure your powers of attorney and healthcare directives are up to date
The right cash flow plan takes the guesswork out of spending and helps keep your day-to-day finances feeling stable. If you’re not sure where to begin, our article How to Create A Sustainable Withdrawal Strategy in Retirement breaks it down further.
Adjust Your Investment Mix
Your investment strategy during your working years leaned toward growth. But as you step into retirement, it often makes sense to dial back some of that risk while still leaving room for growth.
That doesn’t mean pulling out of the market entirely. In fact, maintaining some exposure to stocks is usually necessary to help your money keep pace with inflation.
The key is balance: growth where you need it, stability where you want it, and enough liquidity for short-term needs.
And remember, your risk tolerance might feel different now that your paycheck isn’t replenishing your savings. It’s worth revisiting.
Take a Fresh Look at Healthcare and Insurance
Healthcare often becomes a bigger part of the budget in retirement, and it’s one of the expenses that can catch people off guard. According to Fidelity’s Retiree Health Care Cost Estimate, the average 65-year-old couple may need about $315,000 for healthcare costs throughout retirement (and that doesn’t include long-term care).
Now’s the time to:
Having a plan for these “what-ifs” can make the rest of your financial decisions feel a whole lot less stressful.
Check In on Your Estate Plan
Retirement is also a smart time to revisit your estate plan. Things like retirement, new grandchildren, or changes in your health can all shape what you want your plan to reflect.
This might include:
It’s not always the easiest conversation, but it’s one of the most important ways to protect your loved ones and ensure your wishes are clear.
Give Yourself Permission to Revisit the Plan Regularly
Retirement planning isn’t something you do once and forget about. Life changes. The markets shift. Healthcare costs rise. Family dynamics evolve.
The best approach? Think of your plan as a living document. Check in regularly, whether that’s every year or anytime something big changes.
These touchpoints help keep your strategy aligned with your life so your money continues to support what matters most to you.
Let’s Make Sure Your Plan Still Fits
This transition into retirement can feel like a lot, but you don’t have to figure it out alone. When you have the right financial partner, you’re not guessing; you’re making confident, informed decisions with a plan that evolves as your life does.
At Falbo Wealth Management, we help retirees and near-retirees adjust their financial strategies to reflect their next chapter. Whether you’re a few years out or already into retirement, we’re here to help ensure your plan is designed to support the future you’ve worked so hard to build.
Wondering if your current strategy still fits? Let’s talk. Schedule a complimentary consultation to review your plan and make sure it aligns with your goals today and in the years ahead.
This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.