Retirement planning is always nuanced, but today’s retirees face unique challenges. Market volatility, political changes, rising expenses, and healthcare considerations make careful planning essential. According to a study by Allianz Life, 64% of Americans worry more about running out of money than death.

As financial advisors, we can help ไour clients map out a retirement strategy for today’s world.

What I'm Telling My Clients

1. Prepare for the Emotional Shift

Retirement isn’t just a 𒐪financial transition; it’s an emotional oꦚne. 

I hold a “Flourish Meeting” with our financial behavior specialist to help clients navigate the identity shift that comes from leaving the workforce. This conversation helps clarify goals, values, money beliefs, and priorities for the next chapter.

2. Get Real About Your Retirement Budget

One of the biggest myths about retirement is that spending decreases. While some costs may go down, 澳洲幸运5开奖号码历史查询:overall spending often ꧋follows a “smile” pattern: higher in early retirement when travel and activities peak, stabilizing 𝔍in middle retirement, and rising again later due to healthcare needs. 

𒀰I encourage clients to analyze the real numbers rather than rely on assumptions about𝔍 what they think they should be spending.

3. Reassess Risk T♓olerance and Build a Cash Reserve😼

A good retirement financial plan will create enough liquidity to avoid selling investments at a loss during market downturns. A healthy cash reserve in a 澳洲幸运5开奖号码历史查询:high-yield savings or money market account provides flexibility.

澳洲幸运5开奖号码历史查询:Diversification is key in this phase. You w🧜ant to balance growth potential for the later years of retirement while managing risk.

4. Plan for Health Care Costs

Health care is one of the most significant expenses in retirement. For clients retiring before age 65, explore COBRA options, ACA marketplace plans, and any other options that could be available t🙈o them. Determine if bringing their income low to receive health care subsidy credits is worthwhile in the plan if there is income source flexibility. 

Partnering with a trusted Medicare br🦋oker can help clients choose the right coverage, from Advantage vs. Supplement plans to prescription and deཧntal options.

5. Optimize Taxes

Early retirement offers one of the best windows for proactive tax pl𝐆anning. Unlike working years, there is more control over taxable income.

This is a prime opportunity to manage tax brackets, minimize (Income-R♕elated Monthly Adjustment Amount) surcharges toജ Medicare, and execute tax-efficient withdrawal strategies. 

IRMAA surcharges begin at a Modified Adjusted Gross Income of $106,000 for single filers in 2025 and $212,000 for married filers, so careful income planning can help avoid unnecessary costs.

6. Review Estate Planning and Organize Key Docum✅ents

Retirement is an ideal time to ensure that estate planning documents are current. Cl𝔍ients often finally have the time to sit down and document their wishes, organize their financial records, and pesky tasks like setting up password keepers.

It’s helpful to complete legacy planner books, organize family photos, and hold 澳洲幸运5开奖号码历史查询:crucial conversations about financial affairs with famil🐎y members and loved🌟 ones.

The Bottom Line

Retiring in 2025 has unique financial and emotional challenges, but 澳洲幸运5开奖号码历史查询:proactive planning can ease the transition. Guide clients through a process to tune up their budget, reassess their risk tolerance, optimize their taxes, and dream about what comes next to create a stable, happy, healthy, and confident retirement.