3 Phases of Retirement

Key Takeaways

• Set up automatic bill payments and retirement distributions during your working years to protect against cognitive decline in later retirement—missing even one insurance premium can have devastating consequences
• Plan for declining spending needs across retirement phases: build higher vacation budgets into go-go years (first 5 years), then reduce inflation assumptions to 1% instead of 3% during slow-go years when travel naturally decreases
• Prioritize social connections by identifying where you'll get regular interaction before entering slow-go/no-go years—consider moving closer to family, joining recurring activities like sports groups, or co-housing arrangements with trusted friends
• Begin conversations about wealth transfer and helping adult children during slow-go years when you realize you won't spend all your assets; use strategies like pledged asset lines of credit to help fund down payments or education without liquidating investments
• Embrace technology (autopay systems, bill reminders, digital organization) as a practical tool to simplify your financial life and reduce stress, especially as cognitive abilities naturally change in later retirement years