Key Differences In Financial Challenges And Goals For The Phases Of Retirement

People often forget that retirement has several phases. There is a tendency to conveniently place it right after one has stopped working and lump everything together into an indiscriminate episode. It should be noted that each phase has its own unique challenges: physical, emotional, financial, etc. All these might require very specific approaches and solutions that are tailored to the changing needs of the retiree. A one-size-fits-all method might deprive one of the possible joys of retirement.

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Here are some of the basic considerations one needs to reflect on for each discernible stage, which in the end might prove to be the most practical and life-affirming plans a person can make to have a delightful retiree’s life:


Although this is not yet retirement proper, one should already assess foreseeable sources of income once the paychecks stop coming. It is advisable to check the status of one’s defined contribution plans and social insurances. There might also be a need to evaluate the ratios of expenditures, investments, and savings to avoid being shortchanged in the next 10 to 15 years during the first technical phase of retirement.

Early Retirement

The spending will surely go through the roof in the early years of retirement. People are inclined to think that they have won some kind of lottery, and purchases and travels are simply rewards they ought to get for themselves after all the hard work. These might be balanced by the fact that you no longer need to spend too much on clothes, gasoline, or contributions. One should make definite arrangements though for augmenting the income just so one can continue enjoying this phase.

Middle Retirement

Social insurances and other benefits from employment plans will usually kick in around this time. That means new income. The travels and other luxuries might take a backseat, and retirees might prefer to spend more time with the family. This should be a good time also to review your asset allocations and estate plans.

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Late Retirement

Obviously, one will spend a lot on health care during this stage. For some cases, it might still be a wise thing to continue revisiting funds and investments for the remainder of one’s life and for the loved ones who will be left behind.

Andrew Corbman works to ensure that his clients remain financially independent post-retirement, utilizing in-depth industry experience. For more useful retirement planning advice, visit this blog.


A Lesson On Retirement: The Future Problems Created Today

It is simply a part of human nature to be reactive instead of proactive. This has led to a lot of undesirable consequences in later life. There are some ways to which people have not prepared for retirement quite well enough.

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The first mistake that people actually make in their youth is not watching what they eat. For a young person, taking in ridiculously huge amounts of fat and sugar seems to be the norm nowadays, the food portions have become bigger than they ever were, and it’s no longer uncommon to avail of servings that offer up to two thousand calories in one sitting. People eat unhealthily, and they tend to do this as a way of life.

There has also been a number of people who have developed the habit of spending unnecessarily on a multitude of things that they don’t need. They end up owning a lot of things and only a few practical investments.

Sadly, such people are also the ones who don’t even consider making plans even as they approach retirement. There is this myth that says that when people get to be older, they shouldn’t make any steps to invest anymore. That may be true to some extreme, but age is a wide spectrum.

The fact is, even if you are near retirement, you can still make sound investments. This would be a wise move, especially if you did not eat right in your youth and you spent a significant amount of money on useless things.

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Retirement will come eventually, but it can be less problematic with good investments today.

Andrew Corbman is the founder of ASC Financial, Inc., which specializes in investment planning and wealth management advising services for prospective retirees. For more information on retirement planning, visit this website.