You spend 30 or 40 years doing almost everything right.

Save instead of spend. Max out the 401(k). Invest the bonus. Live below your means. Think twice before splurging. Let compound growth do its work.

Then retirement arrives, your financial adviser tells you that you have plenty of money, and suddenly the rules are supposed to change.

Go ahead. Take the trip. Remodel the kitchen. Fly first class. Help the grandchildren. Enjoy yourself.

For some lifelong savers, shifting from accumulating wealth to spending it can be one of the hardest financial transitions of retirement. I’ve heard this repeatedly from financial advisers who work with affluent retirees. Some clients have multimillion-dollar portfolios and financial plans that remain solid well into their 90s, yet they still hesitate to spend $10,000 on a family vacation or upgrade a home that no longer meets their needs.

The problem often isn’t whether they can afford it; it’s whether they can give themselves permission to spend it.

When $8 million still doesn’t feel like enough

Tessa Steinemann of True Alpha Wealth Management in Sandusky, Ohio, works with a retired woman we’ll call Suzie.

Suzie, 65, and her 75-year-old husband have more than $8 million in investable assets. Yet when she considered spending about $10,000 to take her family away for Christmas, she struggled with the decision.

The couple hardly touches its portfolio other than the husband’s required minimum distribution from his IRA. Financially, the trip wasn’t going to derail anything.

Emotionally, it was another story. "A lot of the hesitation to spend with the baby boomer generation comes from their parents living through the Great Depression," Steinemann says.

Suzie’s parents were extraordinarily frugal. Their children worked while growing up, spending was closely monitored and the family absorbed a powerful lesson: Money needed to be protected. Those lessons can remain long after the circumstances that created them disappear.

Steinemann reviewed Suzie’s financial plan and showed her what the couple could comfortably spend each year. But she also reframed the decision around something a spreadsheet can’t measure very well: time.

Suzie’s adult children have successful businesses and don’t need a large inheritance. For them, a family vacation today could be worth far more than receiving additional money decades from now. So Suzie booked the trip.

The episode illustrates an irony I’ve noticed in writing about retirement: The people who become particularly good at accumulating wealth can sometimes become particularly uncomfortable using it.

Disciplined savers question purchases. They comparison shop. They avoid waste. They delay gratification. Those are excellent habits when you are 45 and trying to build a retirement portfolio, but they can become restrictive at 70.

Spending your portfolio can feel scary

For many retirees, the difficulty begins with something more fundamental: After a lifetime of receiving a paycheck, spending from investments feels wrong.

"It’s a tricky process to go from savings to spending," says Lisa Kirchenbauer of Omega Wealth Management in Arlington, Va.

Kirchenbauer recently began working with a high-net-worth Washington, D.C.-area couple in their early 60s who are transitioning from executive careers into retirement. They had never worked with an adviser and brought several common worries with them: spending too much, long-term care costs and the possibility of a major market downturn.

They also have no children, adding another question to the retirement calculation: Who will take care of us when we are old?

The couple has significant financial resources and recently built a dream home in a community they love. Kirchenbauer is helping them develop an aging-in-place strategy while also modeling their future spending.

But the numbers are only part of the job. Some clients want to see detailed projections. Others need frequent reassurance. And for couples who have spent decades measuring financial progress by how much they've saved, drawing money down can feel like going backward.

Advisers like Kirchenbauer sometimes find themselves doing something retirees never imagined they would need: permitting them to spend their own money.

When watching the balance rise becomes the reward

Ryan Maynard of Vaquero Private Wealth in Dallas has seen another version of spending guilt. For some wealthy clients, he says, the pleasure of accumulating money wasn’t primarily about what the money might someday buy. The pleasure was watching the number get bigger.

"Once you understand that, the spending guilt behavior makes sense," Maynard says. "Spending doesn't feel enjoyable; it feels like losing ground."

One of his clients built a uniform-manufacturing business that eventually produced several million dollars of wealth. She had worked so hard for so many years that she rarely traveled. After retiring, the habit continued. Travel felt unfamiliar and intimidating, and she still found herself thinking she didn’t have enough time or money.

Maynard worked with a multimillionaire who continued to live in a high-crime neighborhood despite ongoing safety concerns, because she believed she couldn’t afford to move. Another client, in his 80s and with millions of dollars in excess capital, resisted accessibility improvements to his house even after multiple falls landed him in the hospital. The money was there, but changing the behavior was harder.

Maynard sometimes runs a financial plan twice: once including the expense that’s holding clients back and once without it. Seeing two nearly identical long-term outcomes can help a client understand how little a purchase may affect overall financial security.

Your spouse may have a different money story

Spending anxiety becomes more complicated when couples see money differently. One spouse may view their savings as a tool to enjoy retirement. The other may still see the portfolio as protection against everything that could go wrong.

Maynard had one couple in which a spouse became more comfortable traveling after they set aside three years of spending needs in cash. Another client needed monthly financial planning reviews before she felt comfortable continuing to spend as planned.

The solution wasn’t necessarily earning higher returns, but identifying what would make the fearful spouse feel safe.

Derek Wittijohann of Premier Path Wealth Partners in Madison, N.J., saw the power of family history with a client whose father died without leaving enough financial support for his mother. The son watched his mother struggle and made himself a promise: That would never happen to his family.

Years later, he had significantly exceeded his own retirement savings goal. He understood intellectually that the family had enough. Emotionally, the childhood lesson remained powerful. Wittijohann stress-tested the portfolio using conservative assumptions and mapped income from Social Security, pensions, investments and required distributions.

But one of the most productive conversations came when the client’s wife joined the discussion. She talked about the experiences they wanted together and what postponing retirement was costing them in time.

Bottom line: The client was effectively trying to improve an already extremely strong retirement plan while sacrificing years when he and his wife were healthy enough to travel and enjoy it.

Give your money a job

For retirees who find the idea of "spending more" uncomfortable, smaller buckets can help. Evan Mills of Scholar Advising in Winston-Salem, N.C., might tell a client that $30,000 a year is specifically available for travel rather than simply saying, "You have plenty of money. Spend more."

"If someone has $500,000 available annually, the number may feel extravagant. Divide it into $200,000 for living expenses, $100,000 for travel, and $200,000 for family gifts, for example, and each dollar suddenly has a job. It makes it look less like reckless spending and more like permission to spend," Mills says.

That doesn’t mean retirement should turn an Applebee’s regular into a five-star restaurant connoisseur.

One of Mills’ clients had accumulated about $20 million in company stock before retiring from a senior executive position in California and moving to Georgia. The client didn’t want a flashy new lifestyle that might create distance from friends.

So the upgrades were modest. They still traveled, but sometimes flew first class. They hired a black car instead of an Uber. In Italy, they chose private tours. At familiar restaurants, they might order the better bottle of wine and leave a little more for the tip.

Their lifestyle improved without forcing them to become people they didn’t recognize or wondering if their neighbors would talk about them.

Spend it, gift it — or leave it?

For some families, the question eventually becomes less about whether the money will be spent and more about when it will be transferred.

Wittijohann calls it the "warm hand versus cold hand" decision: Do you give money to loved ones while you are alive and can see them use it, or leave a larger inheritance after your death?

He works with a 70-year-old woman whose family recently sold a successful New York jewelry business. She wants to provide for her children but also worries about protecting the money from possibilities such as a future divorce.

There is no universal answer. Some retirees care deeply about leaving a large legacy. Others would rather pay for a family vacation, help with a first home or fund a grandchild’s education today.

The first step is deciding what you actually want your wealth to accomplish.

What was all that saving for?

Perhaps that is the question lifelong savers eventually need to ask themselves. Saving is usually attached to a future purpose. For decades, retirement itself may have been that purpose. Once retirement arrives, the job of the money can change.

Your portfolio might provide security. It might create experiences with family. It might support children, grandchildren or charities. Or it might simply give you the freedom to make life a little easier and more enjoyable.

As Maynard puts it, the purpose of accumulated assets is different for each person. The goal is to understand what you want the money to do for you.

You don’t need to abandon the habits that made you financially successful. But after a lifetime of saving, retirement means finally learning to enjoy what you've built.

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One of my favorite online reads is the "Tough Love" column in The Free Press, in which author Abigail Shrier dispenses advice to readers seeking help with a wide range of family-related issues.

Recently, Abigail replied to a query from a reader signed Darrill. Darrill sought advice on how to eject his 38-year-old son, who has been living in Darrill's garage apartment for eight years (along with his current girlfriend) and shows no inclination to leave despite having earned two college degrees funded by his parents.

Darrill writes, "We've made it clear that the gravy train ends in six months, and he either moves or starts paying rent, but I have no confidence that things will change by then."

Abigail responds: "How do you make a 38-year-old act like an adult? You can't. You have but one productive role to play in your son's rescue: Kick him out. Cease your mollycoddling and leave the rest to him. Give them two months and then — if necessary — hire a company to box up their things and put them out on the lawn."

Along with most of the dozens of readers who commented, I agreed that in the spirit of tough love, Abigail's counsel was spot on, if often difficult for parents to take. That prompted me to revisit advice I had given to parents of boomerang kids when I wrote my book Raising Money Smart Kids more than two decades ago.

Would the advice of my younger self still hold up, especially at a time when one-third of adults between the ages of 18 and 34 are still living with their parents? Many parents are happy to lend a hand — or a spare bedroom — but how do you keep the kids from becoming too comfy on the couch, stunting their growth into adulthood and possibly jeopardizing your own retirement?

Lay down the house rules.

My best advice, both then and now, is to nip things in the bud by coming up with "The Plan." You and your children should work out in advance the terms under which they'll move back into your home and what they'll do once they get there.

The Plan should start by addressing how long your children will stay. It needn't be a brief interlude, but it shouldn't be open-ended. If your children are home to attend a graduate or training program, their stay could end with the program. If the kids are job-hunting, start with, say, six months and give them an option to renew. Ditto if they have a job and are saving up for a deposit on an apartment. Not being firm enough on this point is one of the biggest mistakes parents can make.

Another big bone of contention is room and board. If your young adults have a job, The Plan should include an arrangement for them to pay at least a nominal amount of rent. If you don't need the money, you can always put it aside for the kids to save for a security deposit on an apartment or to pay off any debt. As an alternative to rent, they could contribute to the cost of food, streaming services or other household expenses. And kids with no income can provide in-kind payment by cooking, grocery shopping, taking over the yard work or performing other household chores.

Whatever arrangement you agree on, it helps to write down the terms in a contract so everyone is working from the same page. And most important, follow through — even if it means, as in Darrill's case, boxing up their things and moving them out.

But it shouldn't come to that if you create The Plan beforehand. It isn't helpful for either of you if you continue to play the role of enabler, conspiring to keep your adult children from growing up.

Note: If you have had adult children return home, let me know how you handled the situation. I'll be happy to share your advice.

Janet Bodnar is editor at large of Kiplinger Personal Finance. Contact her at Janet.Bodnar@futurenet.com.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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My father was a doctor, often on call for emergencies. Though he worked tirelessly, he valued family time. Long before "work-life balance" entered the American vernacular, he practiced it.

Now, decades later, I carry both his work ethic and commitment to loved ones in my own life and share these values with my daughter and clients at Pence Capital Management, where I am the chief investment officer. With summer winding down, I am reminded of the importance of prioritizing family while pursuing success.

Shopify President Harley Finkelstein spoke last year about the concept of "work-life harmony" rather than "work-life balance." I tend to agree. For each of us, there will be many seasons of life where balance will ebb and flow. For the sake of our health and our families, we must learn to find harmony in the season we are in.

What it takes to put family first

Consider this: A great family, financial success, yet children who feel disconnected.

In my decades of work as a wealth adviser, I've seen the terrible repercussions of professionals who have done well financially at the expense of their families. It's not uncommon in our industry to guide clients through painful divorces.

Even in our Golden State, where the rest of the country comes to rest and recharge, Californians need to get away as much as anyone else.

You can choose to prioritize meaningful connections now rather than risk repairing — even severing — relationships later. While financial security is important, investing time in your family can be even more valuable.

Begin today by establishing clear guidelines and intentionally dedicating time and resources to your family's well-being. It's easier than it sounds.

Consider the 'BS account'

It's often hard to spend our hard-earned money because we fear something might come up that requires those funds. Naturally, we want to protect our assets and save for a rainy day, as we were taught for many years.

But allowing yourself to spend on experiences for you and your loved ones is one of life's greatest gifts, and one that can slip away if we're not careful. We should be as intentional about spending on experiences as we are with retirement planning.

My father called this practice a "BS account" and encouraged me to create one early. His rule: Imagine something you want to do with your family, set a cost and save for it in a separate investment account. When you reach the goal, spend it. Then start again.

When I was growing up, he contributed money to this savings account every month, and whenever it reached a certain level, he would spend it on something for the family — usually a great vacation.

When I was young, his "BS account" bought a lake house. Our family would retreat there every weekend and spend time together outdoors.

In the spring, I formally presented the concept of "BS accounts" to a few hundred of our clients and encouraged them to send our team photos if they took our advice.

It's been one of the greatest joys of my professional career to see their memories start rolling into our inboxes.

What experiences matter most to you?

Today, some of my own "BS account" goes toward funding biannual family reunions, one of which I recently wrapped up in the Middle East.

Yours might fund a magical trip to Disneyland, an escape to Europe or the adventurous "California Double," where you surf in the morning and ski in the afternoon. "BS accounts" are less about the cost and more about intentionality and memories.

Decide what experiences matter most to you and your loved ones. Take the first steps: Set up your own account, define the rules and start saving for moments you'll remember.

Make your memories a priority — commit to spending for experiences, not just saving for someday.

You set the rules.

Create transformative traditions

Children will remember the time and memories they share with their parents more than any paycheck. Financial statements might gather dust in a drawer, but the experiences we share stay with us for life.

For a lasting legacy, make your scrapbook as important as your checkbook.

None of us needs permission to spend our money, but sometimes we do need a little encouragement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Retirement often requires adopting a new mindset.

When you were saving for retirement, you were in the accumulation phase as you built wealth. Once you reach retirement, you move into the distribution phase where you begin spending those savings. This warrants a different approach to your financial decisions — and possibly a different adviser.

Just as doctors have specialties, so do many financial professionals. Those who concentrate on the accumulation phase are adept at helping you grow your money during your working years and finding ways to make the market work for you. Their view is long term — as it should be — because they are looking at your retirement from a distance.

Other financial professionals specialize in the distribution phase of retirement. They understand the strategies that can help you maximize your retirement income, improve tax efficiency and make your savings last. Their primary objective is to help you avoid the costly mistakes that can derail an otherwise well-planned retirement.

1. How much income will you really need?

As someone who works in the distribution phase, one of the first things I discuss with clients is what type of lifestyle they want in retirement.

Do they expect to be on the go, traveling to bucket-list locales or buying that boat they fantasized about for years? Or do they envision being a homebody, reading books, chatting with friends and babysitting the grandchildren?

Their answer helps determine how much income they will need, and income is the heartbeat of retirement. Without a sustainable income strategy, retirement plans can go awry.

That's why it's important to make sure your income aligns with your spending goals. Your sources of income may include Social Security, a pension, IRA withdrawals, dividends and interest, cash and rental property.

For example, if someone expects to spend $10,000 monthly in retirement, their withdrawal strategy should be tailored to that need. I always plan for the worst-case scenario and recommend budgeting for more than you will actually spend.

2. When will you claim Social Security?

One significant decision that affects retirement income is when you claim Social Security benefits. The federal government offers plenty of options but not a lot of guidance on this, so Social Security is another area where a conversation with an adviser who specializes in the distribution phase is helpful.

You can begin drawing Social Security as early as age 62 but at a reduced amount that remains reduced for life. There are also income limits if you plan to keep working.

If you wait until your full retirement age (67 for most people these days), you receive more money and there are no income limits. Finally, you can postpone Social Security up until age 70 and receive a larger monthly benefit.

Each claiming strategy has its own advantages and trade-offs, which is why there is no one-size-fits-all answer. The right decision depends on factors such as your health, life expectancy, income needs, tax situation and whether maximizing survivor benefits for a spouse is an important consideration.

3. Can you lower your tax burden?

Taxes may not have been a concern during your accumulation phase, but they could become one during the distribution phase. There are ways to reduce your tax burden in retirement, but if you're not careful, you could unintentionally increase it.

Roth conversions, for example, allow you to move money from taxable retirement accounts, such as traditional IRAs and 401(k)s, to a Roth account that isn't taxed.

It's better to start using them when you are still a few years away from your required minimum distribution age. You pay taxes when you make the conversion, but then your money grows tax-free and isn't taxed when you withdraw it in retirement.

Be careful about transferring too much money into a Roth in the same year, though. You could bump yourself into a higher tax bracket or even cause an increase in your Medicare premiums if your taxable income grows too high.

With the right planning, you can reduce your taxes, keeping more of your money to pay for your retirement needs and wants.

4. Have you thought about sequence of returns risk?

Sequence of returns risk is a potential shadow looming over many retirements — and it may be one of the most significant differences between the accumulation and distribution phases.

It's also another reason retirees need a financial professional who has distribution-phase experience.

Sequence of returns risk can be summed up this way: Before you enter retirement, the order in which your investment returns happen generally makes no difference.

For example, in a 20-year stretch, you can have weak years followed by strong years, or strong years followed by weak years, and at the end the total in your portfolio will be substantially the same.

This is not the case when you retire and are making withdrawals. If the market performs poorly in the first five to 10 years, that combination of market losses with withdrawals can severely drain your portfolio. By the time a recovery happens, you may not have enough in your accounts to capitalize on it.

On the other hand, if the market is strong in your first years of retirement and you are seeing growth even as you make withdrawals, you will be better poised to withstand a down market later on.

Sequence of returns risk is one reason people might want to revisit their investments as they approach retirement. One strategy is to reduce the level of volatility your portfolio faces.

5. And finally: Will you let yourself have some fun?

Many people are hesitant to spend money in retirement, watching pennies carefully and avoiding luxuries or anything even vaguely ostentatious. Remember what I said about retirement requiring a new mindset? That applies here as well.

People who lived frugally as they saved for retirement sometimes struggle to turn off that economical mental attitude when they reach the distribution phase.

They worry so much about running out of money that they risk missing out on the enjoyment these years they saved for can bring. I encourage them to spend that money, to reap the benefits of those years of frugality and to remember the adage they have heard their entire lives, "You can't take it with you."

Of course, they need clarity, structure and some level of comfort to make such a mindset adjustment. That's where the right financial professional comes into play, helping them achieve that comfort by discussing income plans, expenses and any legacy they want to leave behind for children, grandchildren or favorite causes.

The distribution phase can and should be the fun phase — if you let it.

Ronnie Blair contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For many successful executives, retirement looks nearly perfect on paper. The financial plan works. The calendar is open. There is time to travel, exercise and see family.

Then Monday morning arrives.

There is no leadership meeting, no urgent decision and no team waiting for direction. The title that once opened doors is now part of a biography. The daily signals of importance — calls, invitations and requests for judgment — begin to fade.

The traditional corporate career is also less predictable than it once was. Reorganizations, mergers, buyouts and layoffs can push executives toward the exit before they have given much thought to who they will become afterward.

Three traps often follow: holding too tightly to a former professional identity, assuming freedom from work will produce purpose, and filling the calendar with consulting, board work or another demanding role to recreate the old job.

This transition can also involve grief. A career provided meaning, recognition and a familiar measure of personal value. Losing that role can leave even a confident executive wondering: Who am I now?

When the title becomes part of you

In 2016, Carolina Migliaccio, 63, stepped away after more than 30 years in Fortune 500 brand strategy, innovation and design, including work with Kraft Foods and ConAgra Brands.

She began consulting. Two years later, she received an attractive offer for a senior corporate role. She turned it down.

"After three decades, my title and self-worth had quietly fused," she says. "When the title was gone, I had no language for what I was feeling."

She wanted work with meaning, even if it carried less corporate cachet. Yet she kept asking herself, "What would they think?"

The "they" were former colleagues who probably were not thinking much about her next move at all. "The identity free-fall definitely caught me off guard," she says.

It took about five years for her to feel grounded again.

"It perplexed me that a smart, successful executive like myself had no idea who I was," Migliaccio says. "I even questioned what I believed. Were my beliefs really mine, or had I become so indoctrinated by everything and everyone around me that I had lost my own sense of self?"

Migliaccio eventually built Soulful Moxie, an advisory practice focused on identity and leadership transitions. Her advice to people still deep in their careers is to begin loosening the bond between employer and identity before retirement arrives.

"Your job is just a part of what you do," she says.

Today, she is increasingly drawn to experiences and friendships. When a close friend turned 65, Migliaccio hosted a celebration at her home instead of simply arranging another dinner at a restaurant. It was a small example of a larger shift: She was making choices based on what felt meaningful to her, rather than what might impress someone else.

Beware the rush to stay important

Cohen Taylor has seen how quickly the retirement honeymoon can wear off. As a behavioral wealth specialist at Mission Wealth, she helps clients and advisers address the emotional side of money and major life transitions.

She shared two recent client stories. One East Coast couple in their late 50s left careers in finance and celebrated with an extended trip around the world. Coming home was harder. Everyday routines and family dynamics returned, but the structure of work did not.

A West Coast biotech executive reacted differently. After retiring around age 60, the executive quickly pursued another role because life without clear direction felt uncomfortable.

But don’t jump too fast. Consulting, board service, or a new job can be rewarding. The trap is making the decision primarily to quiet the discomfort of no longer being needed.

"If you’re pursuing a new role later in your career, remember that the compensation may not outweigh the constant travel and stress the new job might require," Taylor says. "Money is not everything."

She encourages clients to think about their values, relationships and preferred daily life before committing. A phased retirement can help. Reducing workdays, taking an extended vacation or testing a lighter schedule gives people a preview of life when work occupies less space.

Retirement also requires a shift in your financial mindset. People who spent decades accumulating wealth may start checking their account balances repeatedly once the paychecks stop.

"A number of mindset shifts will occur," Taylor says. "That’s normal."

The goal is to trust a sound financial plan while recognizing that some anxiety is human. Feeling uncertain does not mean the retirement decision was wrong.

Turn experience outward

Perry Solomon, 82, took a different path.

After running a high-end electronics business, he created the eco-friendly consumer-products brand ProSumer’s Choice and sold it in 2021. Today, he advises younger entrepreneurs through Solomon Growth Advisors in Santa Monica, CA.

His two daughters were not interested in joining his businesses, but they helped him broaden his view of legacy. Passing something on did not have to mean handing down a company; it could mean sharing judgment, family values, stories and focused time with his seven grandchildren.

His book, Grandpa Day, reflects more than 20 years of intentional time with them.

"I’m an advocate for retired executives to give back to the business community," Solomon says. "Share your wisdom and experience with younger generations through blogs, articles or books. You can still influence a lot of people in very positive ways."

Solomon remains active, but the purpose has changed. The work is less about proving his own success and more about helping other people build theirs.

A painful transition becomes a new mission

Atlanta resident Nancy Treaster’s reinvention began with caregiving.

Treaster was a senior software executive who managed a large support organization. As her husband’s frontotemporal dementia progressed, she reduced her travel and work responsibilities. She also helped care for in-laws with Alzheimer’s disease.

Eventually, the demands became too great, and she retired in August 2023.

Both her husband and father-in-law died in 2024. After years of work and caregiving, Treaster needed time to decompress. She also discovered that she still needed a mental challenge.

"I left Corporate America for good, but I still needed a project," she says.

That project became The Caregiver’s Journey, a nonprofit and "how to" podcast she co-founded with Sue Ryan.

Treaster had no clinical health care background. She did have years of experience solving problems, leading teams and navigating a fragmented care system. She completed a Certified Caregiving Consultant program and began turning her hard-won lessons into practical guidance for families.

The shift required her to let go of the compensation and status attached to her former role. Over time, the nonprofit stopped feeling like a bridge to something else. It became the work she wanted to do.

Treaster now points families toward hopeful brain-health research while avoiding false promises. The 2024 Lancet Commission estimated that about 45% of dementia cases worldwide are potentially attributable to 14 modifiable risk factors. That does not mean every case can be prevented, but it suggests that some risk may be reduced or the onset delayed.

Her larger message is practical: Get an accurate diagnosis, understand the type of dementia involved and give caregivers information they can use today.

Expect an emotional adjustment

As a retirement coach, I often see retirement unfold in stages:

The honeymoon: Relief and freedom.

Disenchantment: Boredom, restlessness, or feeling lost.

Reorientation: Testing new routines and forms of contribution.

Stability: Developing a life that feels natural rather than improvised.

There is no standard timetable. Some people adjust quickly. Others need several years. Both are normal.

Before accepting the first consulting offer or filling every empty day, create enough space to notice what you actually miss.

Is it the work? The people? The intellectual challenge? The authority? The income? The recognition?

Those answers lead to very different next steps.

Try a short purpose exercise

Try a little "values archaeology."

Think back to the person you were before the executive title. What originally attracted you to your field? Which problems energized you? Did you enjoy building teams, teaching, negotiating, inventing or helping people make difficult decisions?

Then look outside work. When no one was evaluating your performance, where did your attention go?

Your next purpose may grow from an old interest, a transferable strength or a problem you now feel ready to solve. Test it through a class, a volunteer role, a short project or a limited consulting assignment before making a large commitment.

Find your zone of genius

Chicago-based Migliaccio tells clients leaving corporate life to find their "zone of genius" and choose work that reflects their values rather than outside expectations.

"It’s your time to tap into who you really are and let the world know it," she says.

You are never too old to start something. You are never too young to think about what comes after the current career.

Be curious. Leave room to experiment. Retirement does not require you to abandon ambition. It gives you the chance to decide what your ambition is now.

"There is always another way — and often a better way," Migliaccio says. "But you need the time, space and support to discover it."

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Renovating a home to make it more welcoming for grandchildren doesn't mean sacrificing comfort, safety or design aesthetic. In fact, some of the best home improvements bridge the generational gap by combining "aging-in-place" functionality for grandparents with highly engaging features for kids.

These five ideas for high-impact, high-end home upgrades offer maximum appeal to grandchildren while providing long-term value, safety and comfort for grandparents.

1. The multigenerational home theater & media room

Converting a spare bedroom or basement into a media room provides a quiet escape for movies, reading or music. For tech-savvy grandchildren, it becomes the ultimate entertainment zone.

• For Grandparents: Installing comfortable, supportive and easy-to-exit reclining chairs makes movie nights accessible. Acoustic wall panels and high-quality soundbars improve dialogue clarity for those with mild hearing loss without needing to turn the overall volume to uncomfortable levels.
• For Grandchildren: High-performance gaming consoles, a large smart tv or projector and customizable smart lighting (such as color-changing LED strips) create an immersive hangout spot.

2. A low-maintenance, high-adventure backyard

Transforming a traditional backyard into a dynamic outdoor living space encourages kids to put down their screens and enjoy the outdoors, while ensuring the terrain remains safe and navigable.

• For Grandparents: Wide, level non-slip paved pathways (using materials like brushed concrete or textured pavers) reduce tripping hazards. Raised garden beds allow for easy gardening without bending down, and low-maintenance native landscaping reduces the physical strain of yard work.
• For Grandchildren: A well-integrated, custom play structure — such as an in-ground trampoline (which sits flush with the lawn, reducing fall hazards and keeping sightlines open) — provides endless active play. Just follow key safety tips. You can even add a basketball hoop and LED lights.

3. The ultimate bunk room (with smart built-ins)

Converting a guest room into a dedicated bunk room maximizes sleeping capacity for family visits while leaving plenty of floor space for daytime play.

• For Grandparents: Sturdy, custom-built bunk beds with integrated, wide staircases (rather than vertical, flimsy ladders) make it much easier and safer to help kids make the bed, change the sheets or tuck them in at night. Use washable paint and easy-to-clean fabrics to minimize mess.
• For Grandchildren: Bunks with individual reading lights, built-in USB charging ports, personal privacy curtains and dedicated toy storage cubbies give kids their own secret-fort-like retreat.

4. Zero-Threshold "wet room" bathroom

Upgrading a traditional bathroom to a modern, open-concept "wet room" with a curb-free shower is one of the smartest investments for aging-in-place that also feels incredibly luxurious.

• For Grandparents: Eliminating the tub ledge removes one of the biggest tripping hazards in the home. Slip-resistant textured floor tiles, a built-in teak shower bench and stylish, integrated grab bars (some look like high-end towel racks) ensure safe, independent bathing.
• For Grandchildren: A spacious wet room is perfect for rinsing off after a day of messy outdoor play. Features like dual showerheads — including a slide-bar handheld sprayer — make it simple to adjust the water height for toddlers up to teenagers. Although most toddlers and young children take baths, this feature can help grandparents who worry about lifting them in and out of the tub.

5. An interactive kitchen island & snack station

The kitchen is the natural heart of the home. Modifying your kitchen layout to include a double-sided, multi-level island fosters connection through cooking and baking.

• For Grandparents: Under-counter drawer appliances (like a drawer microwave or drawer refrigerator) eliminate the need to dig blindly in lower drawers or reach high above the stove. Pull-out pantry shelves and touchless faucets make daily food preparation physically easier.
• For Grandchildren: A lower counter tier on the island allows kids to safely pull up a stool to help bake cookies or do crafts. A dedicated under-counter "snack drawer" and beverage fridge stocked with kid-friendly drinks gives them the independence to grab their own snacks without needing assistance. Of course, this type of access is for older children; if your grandkids are still babies or toddlers, make sure your lower cabinets have safety locks.

It's all about having fun

At the end of the day, home isn't just about brick and mortar — it's about the memories, giggles and shared stories created inside its walls. Investing in your space to make hosting easier and more exciting is really an investment in family connection, opening the door to years of seamless visits and priceless traditions.

So bring on the blanket forts, the backyard adventures and the late-night movie snacks! With a home designed to welcome every generation with open arms, you’re all set to be the favorite destination for years to come.

Major home upgrades can make your space more enjoyable for the whole family, but they can also come with a significant price tag. A financial professional can help you determine how renovations fit into your retirement budget and longer-term financial goals.

Use the tool below to connect with a vetted financial professional today:

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Retirement is supposed to be a time to kick back and unwind, so who can blame you for not having everything figured out? Big decisions — like whether to age in place, work part-time, or pass on wealth while living — often feel like choices that can wait. After all, retirement can last 30 years, giving you plenty of time to mull things over.

Or does it?

According to Farnoosh Torabi, financial strategist and host of the So Money podcast, endless rumination can actually trigger a retirement shortfall.

"It's the refusal to change anything until life forces it upon us," Torabi told Kiplinger in an exclusive interview. "We remain in a house that no longer serves us. The estate plan remains unreviewed or untouched, and the conversation with adult kids never quite happens."

The root of this inertia varies. For some, it’s emotional avoidance — facing these decisions can feel like confronting one's own mortality, Torabi notes. For others, it's sheer procrastination. After all, who wants to update a will when you could plan a bucket-list trip instead?

Either way, delaying these key moves can cost serious cash and jeopardize your financial security down the road.

The hidden financial penalty of inaction

Take your home, for starters. Delaying downsizing means property taxes, upkeep, utilities, and maintenance will quietly eat into your retirement savings. Plus, if bedrooms are upstairs or hallways are too narrow for limited mobility, you could face costly emergency renovations down the road.

The same goes for an outdated estate plan, which can lead to probate delays, unexpected taxes, or assets going to the wrong heirs entirely.

Pushing off these decisions often turns manageable choices into costly emergencies.

"When the crisis finally hits — be it a fall, a diagnosis, or a partner's decline — decisions that could have been made calmly get made in a panic. You sell your home fast. You move into care you didn't shop around for," she said. "Denial comes at a cost."

Build your retirement 'dream team' before a crisis hits

To keep curveballs from throwing your retirement off course, Torabi recommends tackling these choices head-on while you are still in control. A great first step is realizing you don't have to do it alone and that everyone from your adult children to financial advisors can help map out the next 10 to 20 years.

To stay ahead of potential issues, have conversations with your adult kids now, revisit your estate plan regularly, and consult with real estate, tax, and financial professionals. A local agent can help you evaluate what your home is worth now versus in the future, as well as the tax implications of selling. Meanwhile, a trusted financial adviser can craft a withdrawal strategy that matches your lifestyle.

"Think about building your team early, when you don't need them yet," Torabi says. "That includes a financial planner, an estate planning attorney, and a real estate agent who knows your local market."

And if the scope of it all feels overwhelming? Start small. "Before you downsize your life, downsize one closet," Torabi says.

The runner-up mistake: retiring your earnings potential too soon

Many people nearing retirement view the transition as a finish line — the end of both their careers and their income. They did their job, saved up, and can finally stop working. But according to Torabi, that assumption is actually the runner-up biggest retirement mistake.

"While many of us are so tired of working long hours by our 60s, let's not throw the proverbial baby out with the bathwater," she says. "We're living longer than any generation before us, which is great, but it also means our money needs to stretch further."

Continuing to earn even a small income in retirement gives your existing savings more time to compound, while providing a buffer against inflation at the grocery store and gas pump.

Working in retirement isn't just a financial play, either. Staying engaged provides a sense of purpose that studies link to lower rates of depression, reduced heart attack risk, and longer lifespans. Ultimately, better overall health translates directly to lower medical bills.

"Purpose is not a nice-to-have in your retirement; it's practically preventive medicine," Torabi says. "My advice is not to view retirement as the end of work. It can mean the start of work on your own terms. Think: consulting, mentoring, teaching, or turning a hobby into modest income."

Don't wait for the crisis to force your hand

Whether you are already retired or approaching the finish line, letting hesitation or denial paralyze your planning can undermine both your quality of life and your nest egg.

Take some advice from Torabi and don't wait for a crisis to force your hand. By taking proactive steps today, you can protect your savings, maintain your independence, and ensure your retirement is defined by choice, not financial regret.

Editor's note: This article is part of an ongoing series in which we ask influential personal finance figures to share their opinion on the biggest retirement mistake you can make. Other articles feature Suze Orman, Dave Ramsey, Grant Cardone and Ramit Sethi.

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Could owning a pet affect the way you view life during retirement?

Turns out Fido or Whiskers may have a bigger influence on your post-work happiness than you thought.

Full disclosure: I'm a retirement researcher by profession, and I'm also an animal lover. My wife is a veterinarian, and we're proud pet parents to three dogs, two guinea pigs and a tortoise.

In other words, I don't need to do any research beyond my own home to know the profound impact a pet can make at any stage of life.

Still, I was delighted that Prudential included a few questions about pet ownership in the Global Retirement Pulse Survey it did last summer. And it's really not much of a stretch — the cost of owning a pet should absolutely be a factor in building a comprehensive retirement income plan.

Some things we learned aren't particularly surprising: Pet ownership declines notably by age, people who owned pets before are likely to want a pet during retirement, and most people don't fully consider all the costs of owning a pet after they're done working.

Cats vs dogs

Now for the fun part, and I realize I may have buried the bone — I mean, buried the lede. I wanted to see whether pet ownership — specifically cats and dogs — is related to changes in life outlook. So, we asked whether someone's outlook on life has gotten better with age.

Drum roll, please: Go give your dog a treat! People who own dogs report having better life outlooks than those with cats. And people who have cats actually reported life outlooks that were worse than people without pets (I mentioned this to a few cats I know, and perhaps not surprisingly, they just don't care).

I was curious if other factors like wealth could be driving this, so I ran some additional calculations, and it turns out I wasn't barking up the wrong tree. See the results below.

So, I can't offer any guarantees from our research. But if you think owning a dog in retirement will bring a lasting smile to your face, who am I to disagree?

For over 20 years Prudential has been studying broader economic trends impacting Americans in its Pulse survey. The latest, the Global Retirement Pulse Survey, expands the geographic footprint and includes responses from the U.S., Brazil, Mexico, and Japan (for this analysis I just focus on just the U.S. respondents). The survey was conducted online by Brunswick Group between August 8-22, 2025 and there were 1,000 U.S. respondents. Note, the survey only included "mass affluent" adults, who are defined as age 30+ with at least $100,000 in investable assets.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Editor's note: This is the first article in a five-part series in which Feroz Ansari is highlighting ideas from his book, The Wisdom and Wealth Solution. Feroz, CFP®, is a portfolio manager at Compak Asset Management and an adjunct professor at the University of California-Irvine. (The Wisdom and Wealth Solution is published by Kiplinger Books and is a national bestseller*.)

What if I told you that many of your most important life choices weren't entirely your own?

The career you chose. The amount of money you think you need. Your political and religious beliefs. Your definition of success. Even what you believe will make you happy.

We naturally assume these choices are ours. But what if they have been shaped over decades by forces you never stopped to question?

I call it the "concrete box."

Until you recognize that you were born inside a concrete box, and that you may still be living inside it, it can remain one of the greatest obstacles to building what I call "total wealth" — a life of meaning, fulfillment, authentic happiness and financial security.

For more than a decade, I have begun every graduate wealth management class that I teach at the University of California, Irvine with the same question:

"Imagine you are 60 years old. Someone offers you one final choice. You can receive $20 million in cash or a Nobel Prize. Which do you choose?"

Year after year, more than 95% of my students choose the money.

When I first began asking the question, their answer surprised me. Today it no longer does.

The question is not really about $20 million or a Nobel Prize. It reveals something much deeper. It forces us to examine the assumptions we carry about success, happiness and what makes a life worth living.

Somewhere along the way, many of us began believing that if we accumulated enough money, happiness, security and meaning would naturally follow.

After more than 25 years helping families build financial security and studying the relationship between wealth and human flourishing, I have come to believe that money is essential. But it is only half the answer.

The other half is much harder to recognize because it exists inside the invisible box through which each of us experiences the world.

The box you never chose

None of us chooses where we are born. We don't choose our parents, the genetics encoded in our DNA, our first language, our religion, our culture, our early education or the economic circumstances into which we arrive.

Long before we make our own decisions, these forces begin shaping how we think, what we value, what we fear and what we believe success should look like.

Consider a simple thought experiment. If you had been born to different parents in another country, speaking another language and immersed in another culture, would you hold the same beliefs you hold today?

Almost certainly not.

That realization is both humbling and liberating. It reminds us that many of our deepest convictions are not conclusions we arrived at independently. They are inheritances from the box.

Over time, those inheritances become so familiar that we stop recognizing them as influences. We no longer say, "This is how I was taught to think." Instead, we quietly assume, "This is reality. This is truth. This is simply how the world works."

Those assumptions, masquerading as unquestioned truths, form the concrete box.

The box is not your enemy. It gives you identity, belonging and community. It provides stability and helps answer many of life's earliest questions. But it also creates invisible boundaries around your thinking.

Like a fish that never notices the water surrounding it, most of us never realize that we are viewing life through walls we did not build.

Comfortable prisons rarely look like prisons.

Why it matters more than your portfolio

Traditional financial planning asks important questions. How much should I save? How should I invest? Will I have enough for retirement?

Those are essential questions. But over the years, I have become convinced that an even more important question comes first.

Who is making those decisions — and why?

Financial decisions are rarely driven by mathematics alone. They are deeply personal.

Two investors can own exactly the same portfolio. One watches the market every hour, convinced that disaster is always around the corner. The other pays little attention to daily headlines because experience has taught them that discipline, patience and time matter more than today's market commentary.

Although both investors own the same assets and experience the same market, they live in completely different emotional worlds.

Or consider buying a home. For one family it represents security. For another it symbolizes success — the large house with the pool and white picket fence becomes proof that they have finally "made it."

The transaction may look identical. The motivation rarely is.

That motivation often resides deep inside the concrete box.

We've been measuring wealth with only half the equation

Early in my career, I believed my primary responsibility was to help clients and students become wealthier. I still believe disciplined saving, intelligent investing and thoughtful planning are essential. It is difficult to experience peace of mind when financial stress dominates your thinking, and it is difficult to cultivate deep relationships when you are constantly worried about paying next month's bills.

Yet after working with families whose wealth ranged from almost nothing to many millions of dollars, I noticed something I could no longer ignore. Some of the happiest people I knew were not the wealthiest. Some of the wealthiest were not particularly happy.

That observation forced me to rethink what wealth really means.

Total wealth has two dimensions:

Total wealth = wisdom wealth + financial wealth

Financial wealth provides freedom and opportunity. "Wisdom wealth" provides perspective and direction.

Money can buy choices.

It cannot tell us which choices are worth making.

Building windows

The good news is that you do not have to destroy your concrete box. You cannot. Your history, your culture and your life experiences will always remain part of who you are.

What you can do is begin creating windows.

Every meaningful conversation with someone who sees the world differently allows more light into the room.

Every great book challenges an assumption you once accepted without question.

Every country you visit broadens your perspective.

Every difficult question you ask yourself weakens the concrete just a little more.

One window may not change your life. But enough windows eventually become a door. For the first time, you begin choosing your beliefs instead of simply inheriting them. You stop asking, "What does everyone expect from me?" and begin asking, "What kind of life is truly worth living?"

The most important investment you'll ever make

We devote enormous energy to improving our portfolios. We rebalance our investments, search for higher returns and look for tax efficiencies. Yet we rarely devote the same effort to improving the perspective of the person making those decisions.

A better investment strategy can improve your returns.

A better perspective can improve your life.

Before you adjust your asset allocation, examine the assumptions that shape your financial decisions

Before you purchase another investment property, ask yourself what you are truly chasing

Before you devote more energy to increasing your financial net worth, make sure you are also building a life anchored by purpose, gratitude and meaningful relationships.

Your portfolio will influence how much wealth you accumulate.

Your concrete box will influence what that wealth ultimately means.

So let me leave you with one final question.

Which decision you made this year was truly yours, and which one did your concrete box quietly make for you?

The moment you begin to recognize the walls surrounding your thinking, they become less permanent. You begin to question assumptions that once felt unquestionable. You become curious instead of certain. That curiosity creates windows. Those windows eventually become a door.

A larger portfolio may make the inside of your concrete box more comfortable. It cannot open the door.

You now have the key. Will you step outside?

To learn more, visit wisdomandwealthsolution.com or subscribe to The Wisdom and Wealth Solution YouTube channel.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many Americans think moving abroad is only for the ultra-wealthy. But that's not always the case. In fact, having wealth can make international moves more complex.

While ultra-wealthy households may absorb relocation costs and pay their way out of complicated tax and financial planning pitfalls, they're typically tied to banking systems that don't travel well internationally as a result of the Fair and Accurate Credit Transactions Act.

Larger portfolios, pre-existing estate planning structures and a diversified asset base that includes riskier holdings, such as cryptocurrency, also amplify potential tax exposure, reporting obligations and compliance risks.

In fact, when compared with relatively modest nest eggs built on more traditional holdings, the advantages of the ultra-wealthy shrink, largely because their cases are expensive to manage even before the cross-border risk factor is introduced.

Financial planning for a move abroad

Any move abroad involves two key questions:

• Will moving abroad improve my financial and lifestyle outcomes?
• What factors might lead to additional risks?

Let's examine a hypothetical scenario: Aurora is a healthy, single, 62-year-old U.S. citizen living in California who is considering retiring to Europe. She is specifically considering Portugal or France, but isn't opposed to Italy or Spain because she's enjoyed travels throughout all four countries. Her husband passed away two years ago, and she no longer feels as anchored to the U.S. as she once did.

Aurora has accumulated holdings across a standard IRA, Roth IRA and 401(k) totaling $2.5 million. She will be eligible to claim Social Security in five years. However, she is unsure if she can afford to move permanently and, if she can, how to financially plan for it.

Aurora's profile suggests she'd be a great candidate for cross-border financial planning. The main information missing from her profile is related to qualitative factors we need to discuss before we can craft a financial plan that caters to her vision and absolves her of the stress associated with managing U.S. finances from abroad.

One of those factors is lifestyle. This can surprise people because how it relates to cross-border financial planning may not be immediately clear.

When Aurora talks to a cross-border financial planner, she's surprised by some of their questions. They include:

• Which country or countries are you considering moving to?
• How do you envision your day-to-day life in Europe?
• Have you spent meaningful time in the place you imagine moving to, not including vacation time?

These questions matter because they shape every financial discussion that follows. When lifestyle expectations aren't clear, financial planning becomes more difficult.

Taken together, someone with a lower net worth but clarity around their lifestyle goals will almost always be a better fit for cross-border financial planning than the $10 million client who lacks those attributes.

Other key factors for a successful move

Over time, several other factors emerge as more predictive of a successful move abroad than raw wealth:

• Planning runway. Having 12 to 18 months to prepare before moving makes a meaningful difference. It provides time to understand how a particular country's tax treaty with the U.S. guides financial planning, and time to restructure accounts and avoid rushed decisions, particularly around state taxes.
• Alignment within a couple. Moves driven by one partner while the other remains hesitant means couples tend to struggle financially and emotionally.
• Children/timing. Families who want to move abroad with young children will need to take into account schooling, language integration and associated costs.
• Language. Fluency isn't required, but a commitment to learning matters.
• Work. Many European visas don't allow you to continue working. Plans that assume part-time work can jeopardize immigration status.

Choosing a country

It's tempting to compare countries based on headline tax rates, Golden Visa immigration schemes or popular rankings. In reality, each destination introduces a different type of cross-border tax and financial planning risk.

• Portugal has been attractive for years, yet post-NHR transitions now require careful forward planning to avoid large Portuguese income tax hits.
• France is often predictable thanks to a beneficial tax treaty with the U.S. that streamlines investment management, although in the past year there have been proposed changes relating to wealth tax and Social Security contributions. Additionally, a U.S. inheritance plan must be carefully reviewed and often revised in the event of a move to France. In general, the system rewards planning and heavily penalizes improvisation.
• Italy can be appealing, but the timing of a move matters. Residency start dates, income flows and elections into special tax regimes must be intentionally aligned to mitigate potential cross-border tax hits.
• Spain is an increasingly popular retirement country for Americans. But it tends to introduce higher compliance and reporting friction, particularly around assets held abroad. It also has wealth and solidarity tax considerations, which vary depending on which region you plan to move to.

Ultimately, the right choice depends on income sources, flexibility and how much uncertainty someone is willing to tolerate.

To see how different countries tax retirement income, you can check out this chart from Rook International CPAs & Advisors. You should review your particular situation with cross-border tax and financial planning professionals specializing in your target country to fully understand all the considerations.

It should also be mentioned that this refers to the taxation by each country. In most cases, the exempt income must still be reported on the foreign tax return.

Healthcare: One of the most powerful planning variables

Healthcare is often one of the first costs to decline after moving abroad. For many Americans, this becomes a stabilizing force in the broader financial plan — in Europe, full-time, in-home care and full-service nursing homes can be affordable.

In Portugal, for example, retirement home options generally start at around $20,000 a year, with in-home care varying widely depending on the amount of care required.

Lower and more predictable healthcare costs can free up resources for housing, travel or simply peace of mind. Healthcare planning abroad often reassures people that the move is not only feasible, but sustainable.

The bottom line

U.S. retirees with a healthy-but-not-ultra-wealthy nest egg of around $2 to $ 5 million have:

• Enough flexibility to plan properly before moving
• Spending patterns that are comfortable but not volatile
• Wealth accumulated through decades of work and disciplined investing, rather than complex entities or family offices

However, international relocation rewards adaptability and patience. Those who are unable or unwilling to practice those traits may find themselves feeling unstable or unhappy, even if their cross-border financial planning is sound.

Related Content

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• Why (and How) High-Net-Worth Individuals Are Securing Golden Visas to Protect Their Assets
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Even retirees who budget carefully can find themselves needing extra cash. A good 49% say their expenses are higher than what they expected, according to Schroders’ 2026 US Retirement Survey. It's not surprising that many retirees are turning to part-time work or other solutions to earn more income.

As Amy Zamikovsky, JD, CFP, and senior wealth adviser at Focus Partners, says, "Extra retirement income allows retirees the ability to more easily absorb financial surprises, which is important while our broader macroeconomic reality still looms."

But earning extra money doesn't have to mean retail work or committing to a job you find boring. (It might not even mean working at all.) We asked financial pros for creative ways retirees are generating more income.

1. Sell your expertise (and your network)

You might have spent many years in the workforce honing skills and learning your industry inside and out. In retirement, you can take advantage of that knowledge in a couple of ways. First, you can consult in your former field on a schedule that works for you. Brandy Barnes Marion, retirement plans education manager at BOK Financial, says you can also take the concept a step further by selling your expertise.

"Expert networks pay retired operators and executives by the hour for short calls with investors and researchers," she says. "Medical schools pay standardized patients. Law firms pay mock jurors. Forty years of knowing how a distribution center actually runs is worth real money to somebody."

Other such jobs include acting as an expert witness, an industry mentor and a peer reviewer or grant reviewer.

Tip: These gigs can be lucrative, and they aren't necessarily time-consuming. You can work them into your schedule around vacations or other plans. Some of these jobs can be done virtually, though they might command a lower hourly rate.

2. Work a seasonal job with fringe benefits

Committing to an ongoing part-time job or gig work might not be optimal in retirement, as it might too closely mimic the work schedule you're trying to move on from. That's why Elias Friedman, CFP and founder and senior wealth adviser at Kadima Wealth, suggests pursuing seasonal work.

"Seasonal jobs at golf courses, museums, theaters or parks can be fun, a great way to make new friends, and stay active," he says. "There are other perks retirees can receive by working at these places, too."

Tip: If you work in a museum or theater, your gig might include free admission or comp tickets for friends and family. You can check sites such as Indeed for listings.

3. Rent out space you don't need

You'll often hear that renting out unoccupied space in your home, such as a spare room, basement or finished garage, is a great way to generate income in retirement. But it also means sharing your living quarters with another person. That's why Friedman suggests a different approach.

"I have seen interesting and creative things to get additional income," he says. "For example, this could include renting a garage, parking space, storage area, spare room or even an RV space."

Tip: Apps such as Neighbor can help you rent out your driveway, shed, garage or other home space, providing you with $1 million insurance coverage and charging a processing fee of about 5%. If you have an EV charger at home, you might also want to bundle it into a parking space rental. However, before you sign up, check your home insurance policy and local regulations to make sure it won't affect your coverage and is allowed in your neighborhood.

4. Turn clutter (yours and your friends') into income

It's pretty common to accumulate a lot of stuff in the course of your lifetime. Ernie Wingard, RFC and adviser at Capital Choice Financial Group, says you can turn unwanted items into a goldmine during retirement.

"The most creative thing I've seen is a retiree who built a resale marketplace for her own friend group," he explains. "She takes pictures, posts them online, and takes a small commission for her efforts. After all is said and done, it brings in another $400 or $500 a month."

Tip: Learn about collectibles that are genuinely valuable and niche areas such as silverware and vintage stereos.

5. Launch a YouTube channel

YouTube might not be the most popular app among retirees, but Wingard insists it offers solid opportunities to make money.

"I've also seen some really creative YouTubers in the retirement space," he says. "Lots of shared experiences from their previous field, passing those stories on to future generations, and even providing consulting for people trying to get a leg up in that same industry."

Wingard says one person he knows has a channel in which he talks about golf from his perspective of being a caddy for several decades.

"He teaches people how to pick up caddying professionally while teaching golfers how to read greens for themselves," Wingard says. "Talking about your life from that perspective can be a lucrative endeavor, and it can get really cool with some sponsorships, too.

Tip: Don't expect to make money at this type of venture until you've invested substantial time building a brand. Even then, you might not turn much of a profit if you can't grow an audience, so research the competition and various platforms first.

6. Do something you love

When you're in your 30s, 40s or 50s, you might have to take a job that covers the bills, even if it's not something you're particularly passionate about. But if you're going to work in retirement for extra money, Zamikovsky says it pays to pursue something you enjoy.

"Once upon a time I worked with the loveliest retired couple," she says. "Neither one of them had any experience in photography, but what they lacked in technical experience, they more than made up for with their inspirational love for each other and natural talent at being great with people."

That couple, Zamikovsky says, went on to establish a lucrative photography business.

"With their solid reputation, they booked regular weddings and created a fun and meaningful income stream. Being wedding photographers fit who they were and allowed them the opportunity to build something meaningful together."

The takeaway?

"Don't confine your search or ideas to the tasks and jobs you did pre-retirement," Zamikovsky says. "Instead, be honest with yourself about what it is you're good at, what you like to do, and what unique knowledge or product you can offer the world. If you're going to work during retirement, the work should truly reflect who you are and be something you enjoy."

Read More

• The Social Security Earnings Test: Know This Rule Before Working in Retirement
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Setting down roots near the grandkids is a popular choice for many new retirees. You finally have the free time, so why not spend it with family?

If you're among the 66% of baby boomers who plan to pass on generational wealth during their lifetimes, living nearby guarantees you'll see your gifts make an impact firsthand.

Sounds like what retirement dreams are made of. But not so fast — it can quickly become far more complicated than expected if you aren't careful. Your grandchildren won't stay young forever, and there are financial costs you might not have considered. Let's not forget the emotional side of stepping away from your established life for a completely new one.

"It's one of the largest financial decisions that retirees never actually model into their plans," says Patrick Shope, a certified wealth strategist and founder of Shope + Associates. "They will spend months looking at their budgets, but they drop everything when asked to move near their grandbabies. That decision comes very quickly, but it affects their taxes, their healthcare, and their spending for the next 30 years."

Moving near the grandkids in retirement might be the perfect decision for you, or the flawed, complicated, not-so-ideal decision.

Don't retire near the grandkids until you answer these three questions

1. Why am I moving, and is everyone on the same page?

Unless your children are begging for your help, make sure you can answer this question first: Why do I want to move there?

"I want to spend time with my family," or "I want to help out," isn't sufficient. Your reasons need to be specific, and they can't only be about your family. Sure, they can be the draw, but if you hate everything else about the location, you'll end up miserable when you aren't with your loved ones. Find other attributes that make relocating feel like home. Maybe it's the weather, the proximity to cultural events and the arts or nature. Whatever it is, there has to be something about the move that appeals to you beyond the grandkids.

After that, make sure your adult children are on the same page. You don't want to uproot your entire life to spend time with your grandkids, only to find that your adult children and grandkids are too busy to spend much time with you, nor do you want to become a full-time free nanny, with no time to pursue your retirement dreams.

"Retirees may think this is going to be a Norman Rockwell picture where everyone sits down for weekly dinners, but the children might be thinking 'I need childcare,' " says Joe Buhrmann, advisory financial planning consultant at eMoney Advisor. "Have an honest conversation about how often you will see each other, what role Grandpa and Grandma will play, and what support looks like on both sides."

2. Can I afford to maintain my lifestyle and to undo the move if things change?

Spending time with the grandkids is great, but it can also get expensive. How expensive? According to a recent AARP survey, grandparents spend $2,654 per year per grandchild, and that's just an average. If you're living near your grandkids, expect that bill to increase.

That's not the only cost of relocating to be near the grandkids. Depending on which state you move to, you could pay more in taxes, insurance, or cost of living, all of which puts pressure on your retirement budget. That's why the second question to ask yourself is: Can I afford my lifestyle and a move back if I had to?

You could be ready for your final place of residence, but that might not be true of your adult children. If you moved to live near them, then they decided to relocate, you might find yourself wanting to go back to your original home.

"So many people price what the cost is to move out to this new location to be near the grandchild, but they never price out what the cost is to move back," says Shope. Should you have to move back, not only would you be re-entering the market at a higher price point than when you originally bought a home, but you would have lost tax breaks from moving.

3. Will this location still work if I need care?

When you move to be near your grandkids, you might start eager to play cheerleader, chauffeur and caregiver. But as you age, getting around becomes harder, making it important that you choose a location that continues to support your independence. You must ask yourself: Will this location still work if the tables turn and I am the one who needs care?

"Most people make this move while they are healthy, and the value they bring is physical: carpools, babysitting, being at the pool. Twenty years later, the direction of help reverses, and the same house has to serve a very different set of needs," says Eric Ludwig, director of the American College of Financial Services Center for Retirement Income.

While you want to be near the grandkids, Ludwig says to consider how far the location is from major hospital systems, and whether it has the specialists you may need. If you have to travel for care, will you still be willing and able to do so at 83?

Consider a hybrid approach

If you can't answer all these questions definitively, then you might want to consider a hybrid approach. Instead of moving full-time to a new location, move part-time or on a seasonal or trial basis, to the new location and see how it goes. Some retirees have a second home near the grandkids, while others opt for extended stays in hotels or Airbnbs.

Ludwig's parents, for one example, are residents of Florida and spend their summers with him and his family in Wisconsin. While they live a mile away, there are stretches in the summer where they go a week or two without seeing each other, but that's what's expected. "It’s close to my dad’s golf buddies and their doctor appointments, so it works well all around," says Ludwig.

Editor's note: This article is part of an ongoing series looking at three questions to ask yourself before making a major financial or lifestyle decision. The other stories in the series are:

Retirement readiness

3 Questions That Determine If You're Actually Ready to Retire Early

3 Questions to Ask Before Unretiring

Lump Sum vs Monthly Pension: 3 Questions To Ask Before Making a Permanent Mistake

Where to retire

Moving to Florida or Texas for Retirement? 3 Questions to Ask First.

3 Questions That Reveal If You're Actually Ready to Age in Place

Retirement savings and spending

3 Questions to Ask Before Deciding if a Roth Conversion Is Right for You

3 Questions That Help You Find Your Perfect Social Security Claiming Age

Go Ahead and Splurge, But Ask Yourself These 3 Questions First

Before You Give Money To Your Kids, Ask Yourself These 3 Questions

3 Questions to Ensure Your Retirement Nest Egg Is Inflation-Proof

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Tom retired at 67 after 35 years as a CFO. He spent his career managing risk with precision and applied the same discipline to his retirement finances.

His savings are solid, his withdrawal strategy is documented, and his estate plan is current. He walks every morning and sees his doctor twice a year.

By the industry's retirement checklist, he has done everything right.

However, according to a second checklist that may be even more important for a fulfilling retirement, four of his five pillars are missing.

Every retirement planning conversation eventually centers on the same five items:

• Savings rate
• Social Security timing
• Withdrawal strategy
• Healthcare costs
• Estate planning

These are legitimate concerns, well researched and worthy of careful attention. The financial planning industry has spent decades refining tools to address them.

They answer one question with considerable precision: Can you afford to retire?

However, research has identified a second important checklist. Those five pillars have received considerably less attention in planning conversations, generate no tax provisions and do not appear on any financial statement.

The second checklist predicts the quality of your retirement years more reliably than the first checklist. For most retirees, the score on the second checklist determines whether retirement feels like a reward or a long, quiet drift.

Five pillars of a fulfilling retirement

The five pillars of a fulfilling retirement are not a motivational framework. They are a research-based map of the conditions that sustain health, meaning and well-being in later life. Each has a body of longitudinal evidence behind it. Each is plannable. Yet, in most retirement conversations, each is left to chance.

Pillar No. 1: Exercise

Tom has this one covered. The daily walk, the Wednesday golf round, the annual physical and blood pressure well within range.

Golf, it is worth noting, ranks among the top three exercises for retirees alongside cycling and pickleball: The walking, the outdoor exposure and the social dimension compound its value beyond what most people assign it.

Among the five pillars, exercise is the one the financial industry most often acknowledges, though typically as a healthcare cost to plan for rather than as an asset to build.

The distinction matters. Physical activity is not only a hedge against medical expenses. It is also a cognitive protector, a mood regulator and the most accessible form of independence insurance available to a retiree.

Tom has this pillar but has not yet fully valued it.

Pillar No. 2: Intellectual stimulation

Tom reads the Wall Street Journal every morning. He follows the markets, tracks economic indicators and considers himself intellectually engaged. He is not wrong, but he is missing a distinction that the research makes with precision.

Consuming information is not the same as generating it. For 35 years, Tom's role required him to produce: Analysis, decisions, arguments and strategic recommendations with real consequences. That daily cognitive demand kept his mind operating at full capacity.

Reading is maintenance. The brain grows under novelty and demand, not under consumption and repetition.

A 2025 systematic review confirmed that retirement is associated with measurable cognitive decline because structured cognitive demand disappears. Researchers called the mechanism the mental retirement hypothesis. Passive engagement does not prevent it.

Pillar No. 3: Emotional well-being

Tom's professional relationships were genuine. Over 35 years, he built real trust with colleagues, clients and direct reports. Most have moved to different cities and chapters. His marriage is intact and stable, running on parallel tracks that worked well when his career organized his days.

What Tom lacks is what Harvard's Study of Adult Development, the longest-running longitudinal study of human flourishing in history, identified as the single strongest predictor of health and happiness in later life: The quality of close relationships.

Not the quantity. The quality.

Relationships with real depth, mutual accountability and trust that does not depend on a shared project or a professional context.

Tom has acquaintances. He has a history of relationships. That gap is not a character flaw. It is a planning oversight.

Pillar No. 4: Spirituality

This pillar is the one most likely to be dismissed in a financial planning context and the one most consistently validated by the research.

Spirituality, as the research frames it, is not necessarily religious. It is a connection to something larger than oneself: A sense of meaning, a reason to matter beyond the personal, an answer to why the days are worth living.

Tom's career provided this without his noticing. The company's mission, the team's outcomes and the clients' results gave his work a context that extended beyond his own interests.

In retirement, that context disappeared without a replacement being designed. His days are comfortable and, in a way he has not yet named, purposeless.

Pillar No. 5: Hobbies

Tom golfs on Wednesdays. He enjoys it. The research draws a distinction worth making explicit: Activity that passes time pleasantly is not the same as activity that generates meaning. The difference is whether the outcome matters to anyone, including the person doing the activity.

Golf, in this context, is a placeholder, a reasonable one while a person figures out what comes next.

The hobbies pillar, properly understood, is purposeful engagement that fosters identity and contribution outside professional life.

It is the answer to the question retirement eventually forces on every retiree: Who am I when the job is over, and what do I build with what I know?

This is Tom's shakiest pillar. He has not yet found what replaces the sense of contribution his career provided automatically.

The second checklist

Tom is not unusual. He is representative of the retiree the financial planning industry serves most effectively: Financially prepared, psychologically unprepared and genuinely surprised by the gap between the two.

The five pillars are not equally difficult to build. Most people arrive at retirement with one or two already intact. Tom has exercise. His intellectual engagement is passive and insufficient, as research shows. This is a redesign problem, not a rebuild.

The other four pillars are largely absent. The work is to identify which are missing and to treat that absence as a planning problem rather than a personal failing. Absence is not deficiency. It is a design gap, and design gaps have design solutions.

For Tom, securing the four missing pillars does not require dramatic reinvention. Three commitments cover all four.

The first addresses two pillars at once: A role that demands his analytical skills in a context where he holds no authority, such as a nonprofit board, a civic commission or a mentorship program for young finance professionals. That single commitment restores both intellectual stimulation and purposeful engagement.

A standing social commitment with two or three people who depend on his presence, not merely his availability, addresses a third.

And a question he has not sat with long enough to answer honestly addresses the fourth: What would make the next chapter matter to someone other than himself?

None of these are financial decisions. All of them will determine the quality of the years his financial plan is intended to fund.

The first checklist tells you whether you can afford to retire. The second tells you whether retirement will be worth it. Both are necessary. For too long, only one has been completed.

To learn more about designing a fulfilling retirement, pick up my new book, Your Encore Years: The Psychology of Retirement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

After several decades as a serial entrepreneur — launching computer magazines in the ’80s and hobby magazines in the ’90s, then running conferences for publishers for two subsequent decades — Carl Landau retired in 2019 at age 64. "I finally felt fatigue," says Landau, who lives in Sacramento, Calif. "I always had so much enthusiasm for it all and realized that I had been doing this for a long time."

That first year of retirement, though, proved challenging. Landau and his wife planned a trip to Portugal for March 2020 — the month and year the world practically shut down thanks to the COVID-19 pandemic. With travel canceled and life on pause, Landau did what entrepreneurs do: He launched a new venture, creating a wry, weekly podcast looking at life and identity post-career that he called I Used to Be Somebody.

Within months, the project had morphed into a second career. "I realized I had built another full-time job," says Landau, adding that he found he had little time to pursue his passion for pickleball, one of the activities he’d most looked forward to in retirement.

So Landau recalibrated again. He scaled back production of the podcast and a companion newsletter to once a month, and he now averages some 12 hours a week at work. The rest of his time is reserved for socializing and recreation (pickleball!). Looking back, he recommends that newbie retirees bake flexibility into their plans to accommodate shifting priorities and unexpected experiences.

"There are going to be ups and downs, particularly if you worked really hard for 40 years and all of a sudden you’re not doing that," he says.

Landau’s story is less a cautionary tale than a template for what comes next, as millions of newly minted retirees are now learning. The post-career years, especially in the beginning, are an ongoing experiment. "No matter how prepared for retirement people are, they are unprepared," says certified financial planner Ross Levin, cofounder of Accredited Investors Inc., a wealth management firm in Edina, Minn.

The impact of "Peak 65"

Thanks to the aging of the massive baby boom generation, the ranks of first-time retirees looking for financial security and purpose in the next stage of life are historically large right now.

Between 2024 and 2027, a record number of Americans will turn 65 or will have already celebrated that milestone birthday, including 4.1 million this year and about the same number next year — a cohort known as Peak 65. All boomers will be at least 65 by 2030.

Many of these freshman retirees understandably face the transition to their next chapter with some trepidation. The percentage of workers who feel confident that they have enough money to live comfortably in retirement fell by 6 percentage points from 2025 to 2026, to 61%, according to a recent survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research.

Among the concerns stoking worries about finances in retirement were inflation, debt, healthcare costs and housing expenses, as well as doubts about the future financial viability of Social Security and Medicare.

Adding to the anxiety: Many near-retirees haven’t spent much time planning for what they will actually do once they’ve put a full-time career behind them. That’s the key takeaway from a 2025 survey by the Financial Planning Association and the Journal of Financial Planning. About half of the financial planners surveyed said their clients were financially prepared to stop working, but only 11% said the people they advise were emotionally prepared for the lifestyle adjustments that retirement entails.

If you’re looking ahead to retiring soon or have recently embarked on the retirement journey, you want to make sure you have both parts of the process covered. Experts recommend these steps to ease the transition from full-time work and to ensure that you flourish in this next chapter.

Rethinking what retirement looks like

Part of the challenge you face as a new retiree is that the definition of this stage of life is changing, as people generally live longer and in better health than previous generations. Yes, the word retirement still typically signifies the end of a long career. But individual paths diverge wildly from there these days.

The classic vision of retirement as full-time leisure and relaxation remains an option. Increasingly, though, many retirees take on part-time jobs, gig work or even encore careers. Some become passionate volunteers or dedicated hobbyists; others go back to school. Some embrace an active role as grandparents or become caregivers to aging loved ones. Often, retirees pursue a mix of these roles that evolves with age.

What’s right for you? The beauty of a long retirement is that you don’t have to figure it all out from the jump or stick with a single vision. It helps, experts say, to view the first year of retirement as a period for gathering information that will help smooth the transition to this next chapter and build a strong foundation — financially, socially and emotionally — for a comfortable, meaningful retirement.

"The first year is a test year," says CFP Lazetta Rainey Braxton, founder of the Real Wealth Coterie, a wealth management firm in New Haven, Conn.

The key, experts say, is to be willing to experiment and to seek out pursuits that offer purpose, keep your body and brain active, and help you maintain social connections. You also need a good idea of how much you can safely spend to make those things happen.

In other words, you need both a purpose plan and a financial plan at the beginning of your first year of retirement. That allows for smarter decision-making and flexibility, helping you adapt as experiences and new data inform your views and the inevitable curveballs come your way.

"If you’re thriving, it’s because you have a personalized vision for what retirement means to you," says Lisa Stornaielo, cofounder of The Future of You, a Boston-based consultancy that helps individuals and corporations navigate the transition to retirement. "Your finances are an important piece.

But what we’ve found is just as important is that people are very clear not only on what they’re retiring from but also on what they’re retiring to, and there’s an intentionality around that."

Treating your first months as a sabbatical

Of course, you’ll need time at first to decompress, exercise, read, and tackle long-delayed home projects or similar tasks. There is immense value in giving yourself permission to relax and enjoy new experiences.

Think of those first few months as the equivalent of taking a sabbatical — a necessary window to recharge mental and physical energies while creating psychological distance from a lifelong work identity.

A sabbatical is temporary; retirement is not. The profound shift in navigating the transition between the working world and retirement comes down to sheer time.

Leaving a full-time career suddenly frees up roughly 2,500 hours each year, calculates executive coach Joe Casey in Win the Retirement Game: How to Outsmart the 9 Forces Trying to Steal Your Joy. "People enter retirement at different ages and with various levels of resources," he writes. "But all new retirees are time-rich."

The core question to ask yourself: How will you invest that newfound wealth of time? What is your purpose? What matters to you? "I encourage people to write some sort of business plan," Landau says. "It doesn’t have to be elaborate. Just list your goals, what you really enjoy doing and the things you don’t like."

Adapting your plan as life happens

Any entrepreneur will tell you that a solid business plan not only increases the odds of success but also accounts for the fact that the blueprint will change multiple times. Take the experience of Joy Norquist, 70, and Ron Wawrzon, 69, who retired — she from a career in insurance compliance, he from working as an operations manager for a small manufacturing company — in 2021 and 2022, respectively.

The Saint Paul, Minn., couple both have pensions, retirement savings and a long-term relationship with a financial planner. They planned to move to Chicago, where Wawrzon is from, but life intervened. Wawrzon faced a health setback (he’s fine now), and Norquist’s mother required months of intensive care following a serious fall. Those initial plans for retirement went on hold.

Meanwhile, the couple discovered part of their post-retirement rhythm almost by accident. One afternoon, for fun, they went to an open house for a condo in a high-rise building in downtown Saint Paul, and they fell in love with the view. The couple moved to the building two years ago. They joined a local walking club, they participate in a weekly study group at a local tavern, and they enjoy movie nights with neighbors and other activities.

Norquist’s mother passed away in late 2024, and the couple spent much of last year dealing with her estate. Now that’s mostly done, but Chicago may no longer beckon and Norquist and Wawrzon are taking their time to decide what comes next for them in retirement. But they view the future with optimism. "We feel like we haven’t really launched yet," Norquist says. "We’re figuring out the rest of our lives from here."

Build your core strategy

As you shift from earning and saving money to spending the fruits of your labor, retirement triggers a cascade of financial decisions, from where to live and how you’ll pay for healthcare to when to start taking Social Security benefits and how much you can safely withdraw from retirement accounts.

Yet only one in four Americans in their sixties has a formal, written financial strategy for retirement, according to a 2025 report from the Transamerica Center for Retirement Studies.

If you’re among them, now is the moment to create a plan — or revisit and update the one you already have. You need realistic data on expenses (needs and wants), liabilities, tax rates and healthcare costs to figure out where you stand and what options make the most sense for your circumstances.

You can work with an adviser (find one at napfa.org, letsmakeaplan.org or garrettplanningnetwork.com) or do it yourself using planning software, such as Boldin (free for the basic version; $12 a month for advanced features) or WealthTrace ($229 a year, standard; $289 a year, deluxe).

Maximize your Social Security payout

Among the most critical decisions to ponder in year one: when to claim Social Security benefits. The earliest you can apply is age 62 and the latest is age 70; the longer you wait, the bigger the monthly payout will be.

For instance, boomers celebrating their 65th birthday this year who wait to file until they hit their full retirement age of 67 — that is, the age at which they’re entitled to 100% of their benefits — will get a monthly benefit that is roughly 43% bigger than if they’d claimed at 62, according to the Social Security Administration. Wait until age 70, and that monthly benefit will be 77% higher than the payout at 62.

Because you can’t outlive your Social Security benefit and the payout is adjusted annually for inflation, the standard advice is to hold off filing for as long as possible — at least until your full retirement age. However, there can be good reasons to claim earlier — if, say, your health is poor, or you’d otherwise need to withdraw too much from savings to pay fixed expenses.

An adviser can help determine the optimal time to claim for your situation, or you can tap online resources for assistance, such as Open Social Security, a free strategy calculator, or planning software such as MaxiFi ($109 a year, standard plan; $149, premier). (For more guidance, see "Perfect Timing: When to Claim Social Security," April.)

Master your portfolio withdrawal strategy

You’ll also need to tackle the puzzle of how much money you can safely withdraw from your retirement portfolio. One common guideline is the 4% rule, developed by retirement researcher William Bengen in the mid ’90s.

It suggests taking out 4% in the first year of retirement (it assumes the portfolio is split roughly 50-50 between stocks and bonds), then adjusting subsequent withdrawals annually for inflation. Historically, Bengen calculated that strategy would ensure you would never run out of money, even in the worst-case scenario for financial markets.

Although the 4% rule is a simple and convenient metric, experience has shown that strictly adhering to it often leads retirees to withdraw less than they can afford to spend, potentially stopping them from enjoying this chapter of life to the fullest. Many experts, including Bengen himself, have revised the initial withdrawal rate upward to the 4.5%-to-6% range.

In his 2025 book A Richer Retirement, for instance, Bengen suggested 4.7% would be a better starting point for withdrawals, and he changed his model portfolio to hold as much as 65% of long-term savings in stocks.

Likewise, CFP Rainey Braxton typically recommends that you withdraw up to 5% the first year — ideally somewhere between 4% and 5% — and possibly a little more, depending on what she calls "the nuance and art of knowing the client’s circumstances."

A popular alternate approach is the bucket strategy, initially developed by CFP and wealth manager Harold Evensky, chair of the Coral Gables, Fla., financial planning firm Evensky & Katz. As Evensky said in a Morningstar interview last year, the strategy was "designed so the client wouldn’t get panicked if the market was falling apart because [they’d know] where the grocery money was coming from."

The basic idea is to set aside enough cash to cover, say, one or several years of living expenses, when combined with Social Security and any other guaranteed sources of income, such as a pension.

Money that you won’t need for several years is then invested in a diversified portfolio of fixed-income securities and equities, which offer the prospect of higher long-term returns but at greater short-term risk. The cash cushion offers peace of mind that you’ll get through the inevitable market slumps without needing to sell depreciated stock or bonds.

Despite the differences between the two strategies, the central takeaway is the same: Spending plans should be dynamic. In essence, the first year of retirement provides a trial run to implement a fluid strategy, allowing you to track your actual lifestyle costs while remaining flexible enough to make adjustments if market or economic conditions or personal priorities shift.

"People think they need to have it all figured out right away," says Andrea Eaton, a CFP at Cornerstone Wealth Advisors in Edina, Minn. "It takes a year to figure out your actual cash needs. It really is a guesstimate initially, and that can be changed up or down. It simply takes time getting used to taking money out versus putting money in."

Discovering your post-career purpose

Newbie retirees often feel unmoored when they are no longer defined by their job and the need to make a living. So it’s important to build a new sense of purpose for your retirement years and have good reasons for getting up in the morning.

"You should be working on what your life will look like before you even retire," Eaton advises. "What is your greater purpose? How are you getting involved in your community? What gives your life meaning beyond working for an income?"

How do you find that purpose now? Stornaielo, who spent 21 years at Fidelity in human resources and executive coaching, warns against getting too caught up in pretentious visions about purpose. She recalls a three-day retreat focused on purpose that she attended while still at Fidelity. The retreat was very serious and high-minded. At the end of it she declared her purpose was to be "the yeast in the bread of life," she laughs. "Whatever that means."

Her purpose mantra now is far simpler and grounded: "Helping people achieve their potential." Also helpful, she says, is not to think of your retirement as the end part of your life. "Don’t get hung up on how much time is left. [The focus should be] what I can do today to feel like I’m making the most of my time."

Finding meaning through community, learning, and giving

For Laura and Ben Cooper, giving back to their community is what’s providing that feeling and sense of purpose in retirement. Laura, 78, a former law professor at the University of Minnesota, became a volunteer teacher in a citizenship program in the Twin Cities when she first retired in 2018.

Along with Ben, 79, a former mathematics professor at Augsburg College in Minneapolis, they’ve since branched out to support a variety of causes that include local arts organizations, environmental groups, nonprofits focused on refugee rights, and their local library system. Freed from the busyness of active careers and raising their now-grown son, they were able to ask themselves, says Laura, "What do we really care about?"

The Coopers manage much of their giving through a donor-advised fund, a tax-advantaged charitable-giving vehicle that works like a personal investment account for philanthropy.

Added benefits of their philanthropic work, they’ve found, are the sense of community and opportunities for continued learning it has given them. They’ve joined outings with Nature Conservancy scientists, attended private theater rehearsals to hear from actors and directors, and learned from experts about international human rights. "Learning is absolutely vital, and we have pretty diverse interests," says Laura.

Conversations with family, friends and acquaintances are a rich resource for thinking about purpose. One technique is to pay close attention to the tasks, conversations and projects that leave you energized rather than drained. Introspection helps, too.

Think back to other major life transitions and see what consistent core values carried you through those shifts. Volunteering, mentoring, taking a course or learning a new skill are activities that also offer useful information.

And some resources can help. Among the books that might provide both inspiration and practical suggestions are: Who Do You Want to Be When You Grow Old? The Path of Purposeful Aging, by Richard Leider and David Shapiro; The Big Shift: Navigating the New Stage Beyond Midlife, by Marc Freedman; and The Second Mountain: The Quest for a Moral Life, by David Brooks.

Evaluating year one to recalibrate year two

At the end of your first year of retirement, Eaton suggests conducting a personal audit.

Ask yourself, What activities brought you the most joy and fulfillment? Which were a waste of time? Are you feeling lonely? Do you need to inject more intentional social interactions, clubs or group hobbies into your life? How is your budget holding up against the reality of retirement? Do you need to scale your spending up or down based on your actual first-year cash flow?

The answers to those questions will help you shape year two of retirement, which in turn will help guide year three. Retirement is iterative by nature — a series of continuous recalibrations. You want to be continuously asking yourself, says Eaton, "What didn’t go well? And how do I want next year to be?"

Know this: Your first year probably won’t look exactly as you imagined it would before you stopped working full-time, and that is perfectly fine. Year one isn’t supposed to be the final draft of your retirement; it is simply the initial run of a grand experiment.

Build a personalized plan with confidence

Retirement is full of important financial decisions, from creating a sustainable withdrawal strategy to deciding when to claim Social Security. A financial planner can help you build a personalized plan with confidence.

Use the Bankrate tool below to connect with a vetted financial planner who can help you create a retirement income strategy that fits your goals:

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Aging in place has its benefits. You can stay in the home you're accustomed to. You're close to friends, family, community, doctors, and caregivers. Plus, you don't have to worry about the headaches and stresses of relocating.

For all those reasons, aging in place is a popular choice for many retirees. How many? According to AARP, 75% of adults aged 50 and older want to remain in their homes and communities as they age.

Remaining in your current home during retirement also presents meaningful financial advantages. Beyond avoiding the considerable expenses associated with a retirement community — which often range from $6,200 to $10,800 per month —there are several less apparent cost savings.

From everyday grocery savings to reduced tax burdens, here are five surprising ways aging in place can protect your nest egg.

(Read our companion story: 5 Unexpected Costs of Aging in Place — Even With No Mortgage)

5 unexpected aging in place savings

1. Cheaper groceries

Eating out can add up, and if you relocate to a retirement community or a new location, you may spend more on meals than if you age in place.

That's because living in a retirement community or assisted living facility usually comes with prepared meals and a set meal plan. Sure, standard meals may be included, but extra meals or guest dining aren't, which can quickly add up. If you live at home, you can cook for yourself, buy food on sale, shop in bulk, and find other ways to save on your groceries.

As for retirees who relocate to a new area, they may spend more money dining out, trying new restaurants in the town as they get a feel for the new neighborhood.

2. Flexible healthcare

Aging in place allows you to control your support costs, saving you serious cash compared to an assisted living facility or nursing home. Instead of paying a steep, flat monthly fee regardless of how much care you actually use, you only pay for what you need. If you require help for a couple of weeks after a fall, you can hire an aide for just that timeframe. If you only need assistance with errands for a few hours a month, you pay solely for those hours.

A non-medical home care aide generally costs $30 to $35 per hour (or $300 to $350 a month) for ten hours of help. Compare that to a full-time facility, which runs $6,200 or more per month, and the savings are substantial. Best of all, the money you aren't spending on a facility can stay invested and continue to grow.

3. Property tax savings

Setting down roots does mean something, even if the younger generations are quick to switch jobs and cut ties. And that loyalty is rewarded for homeowners who stay put in the form of tax breaks that you won't get if you relocate in retirement.

Most states and towns offer some sort of property tax break for residents over the age of 65, whether it's a homestead exemption, senior property tax exemption or a tax freeze. You won't get those immediately if you move to a new home, even if you are over the age of 65. Typically, you must own and live in the property as your primary residence for one to three years before you're eligible.

Staying put means you can collect as much as three years of tax savings, which could amount to hundreds, if not thousands, of dollars in savings.

4. Loyalty and senior discounts

Loyalty pays off, and that's particularly true for retirees who stay put as they age. By remaining in your long-time home, you can get discounts on everything from utility bills to property insurance. Discounts that you might not get if you relocate.

Utility companies tend to offer rate reductions or senior credits to long-term residents, while staying in the same home enables you to keep your policy discounts with your insurer. Staying put also protects you from taking on a brand-new policy at today's inflated market rates. That's good news since homeowner's premiums have jumped nearly 47% nationally over the last five years alone, according to LendingTree.

If you relocate to an area prone to severe weather or natural disasters, like hurricanes in Florida, your homeowners' insurance premiums could soar even higher, wiping out any expected savings from moving.

5. Free support networks

Whether it's close friends, long-time neighbors, or family living nearby, an established support network becomes invaluable as you age, especially if you decide to stop driving. By staying in your home, you can rely on informal favors, like a neighbor driving you to a doctor's appointment or a friend picking up your prescriptions.

If you relocate, a simple trip to the pharmacy or grocery store can easily run $20 or more for a rideshare if you don't have a car or a network of similar help. Relying on private transit services for every errand can quickly add up to hundreds of dollars a month.

Add savings to the list

There is a long list of reasons why people choose to age in place, and saving money isn't typically top of mind. But it is a major added perk, one retirees can comfortably add to their list.

After all, whether it's groceries, home maintenance, insurance, property taxes or support, aging in place offers real savings that go far beyond just avoiding the steep costs of an assisted living facility.

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Aging in place is a popular choice for retirees for good reason. Home is where you raised a family, built a life, and rooted yourself in community, and if your mortgage is paid off, you've eliminated one of retirement's biggest expenses.

However, housing costs go far beyond a mortgage and property taxes. If you aren't prepared, these five hidden costs of aging in place can easily throw your retirement budget off course.

(Read our companion story: 5 Surprising Ways Aging in Place Can Save You Thousands in Retirement).

Five hidden costs of aging in place

1. Home modifications

Aging in place might be as easy as relocating to a main-floor guest room, or it could require a complete architectural overhaul. Before committing, make sure your home is suitable for aging in place, and if it's not, that you can afford the necessary upgrades.

Major modifications such as walk-in showers, wheelchair ramps and widened doorways can range from $2,500 to more than $20,000, and Medicare won't cover them. The last thing you want is to find out after retiring that your hallways can't accommodate a wheelchair.

If you aren't sure whether your home is age-in-place ready, take our quick quiz here. Before you decide, ask yourself these three questions first.

2. Chore tax

Mowing the lawn, cleaning the house, tending to the pool and otherwise maintaining the house might seem easy in the early years of retirement, but as you get older, you might not be up for all that physical labor. Hiring someone for home maintenance comes at a cost that can add up.

On average, basic lawn maintenance costs $100 to $500 per month, while pool service ranges from $100 to $350 monthly. House cleaning typically costs $120 to $240 per visit, depending on your home's size.

3. Aging home appliances

From the ,boiler to the refrigerator, if you're aging in place, chances are, your appliances are too. They might be healthy now, but as they get older, they could fall into disrepair and need replacing, which could set you back some serious cash. Homeowners' insurance won't cover a crack in your oil tank or a refrigerator that suddenly stops working.

How much will you be on the hook for if you have to replace an old oil tank? It could be anywhere from $400 to $6,000, according to Angi. Meanwhile, the average cost to replace an HVAC system is $7,500, based on unit type and home size.

4. Transportation costs

If your home is in the suburbs and you lose the ability to drive, getting around can get expensive. That's particularly true if public transportation is inaccessible in your neighborhood or if you don't have a support network that can shuttle you to and from appointments.

Taking a rideshare or taxi to a doctor's appointment, the grocery store or to visit friends and family can quickly add up. Spending $20 to $40 per trip, or $300 or more per month just to run errands or get to appointments, will eat into your budget fast.

5. Rising homeowners' insurance costs

Even if your mortgage is paid off and homeowner's insurance is no longer required, going without it means you're personally on the hook for any damage. That's why most mortgage-free homeowners keep their policies.

If you plan to age in place with peace of mind, be prepared for rising insurance costs. That is especially true in states such as Colorado, Minnesota and Iowa, which saw double-digit premium hikes in recent years. Nationwide, average rates jumped 6% in 2025 alone

Crunch the numbers

Aging in place is the goal for many retirees, and for good reason — your home holds your memories, routine and community. But before committing to stay long-term, take an honest look at what it will take to keep your house safe, functional and comfortable.

Running the numbers on these hidden expenses today will help ensure your forever home stays a place of comfort — and doesn't become a financial trap later.

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Cash is king in retirement, and keeping more of it in your portfolio is always a priority. Fortunately, saving money doesn't always require cutting back. Sometimes it just takes changing how you pay.

By paying certain everyday expenses upfront, you can unlock significant discounts. Monthly payments include processing fees, administrative overhead, and transaction risks for providers, so many reward customers who pay in full, upfront.

From property taxes to annual subscriptions, prepaying these five recurring bills can yield serious savings without altering your lifestyle.

5 everyday bills to prepay now

1. Annual property taxes

Even if you paid off your mortgage, you're still on the hook for annual property taxes, and depending on which state you live in, the price can be hefty. For example, there are 18 states with annual property taxes of $4,000 or more. New Jersey ranks highest with annual property taxes of $7,580.

In some states, including Florida, you get a discount if you pay your annual property tax in a single upfront payment, which eliminates monthly processing fees. In Florida, that discount can be as much as 4%, depending on how early you pay.

2. Lawn care and pest control

Prepaying for lawn maintenance and pest control services can yield about a 5% savings, but it typically locks you into an annual contract.

Before you sign with a provider, make sure you understand the cancellation terms, service guarantees, and auto-renewal clauses. If you use a local contractor, ask if they offer an additional discount for paying the entire year upfront in cash.

3. Streaming subscriptions and memberships

This strategy works best if you are already loyal to your streaming services, warehouse clubs or gym and plan to keep them all year. By switching from monthly billing to an annual plan, you can unlock discounts ranging from 10% to 25%.

Take Amazon Prime as an example: paying $139 for an annual membership instead of $14.99 per month saves you over $40 a year, and that's just one service. Do that with all your subscriptions, and the savings can add up.

4. Dental and elective medical care

If you have the cash, offering to pay upfront for dental or elective care rather than using a payment plan can yield discounts ranging from 5% to 15%.

You have an even bigger advantage if you have a Health Savings Account (HSA). Paying out of pocket lets the HSA balance grow tax-free, and because there is no deadline to reimburse yourself, you can save your receipts and withdraw those funds tax-free later in retirement.

5. Long-term care insurance premiums

Paying insurance premiums annually instead of monthly can yield substantial savings, and long-term care policies are no exception. Most insurers add a 3% to 8% surcharge when you split an annual bill into monthly payments, but writing one check eliminates those extra fees. Depending on your carrier and policy size, switching to an annual payment can easily save you hundreds of dollars each year.

A word of caution

Only prepay these expenses if you have the extra cash on hand. If making a lump-sum payment forces you to sell off investments during a market downturn, you expose yourself to a sequence of returns risk, which can create a retirement shortfall later on. But if you can swing it, prepaying these five everyday bills is one of the easiest ways to unlock hundreds in savings without touching your lifestyle.

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With inflation still hammering retiree budgets, retirees may want to stress-test a simple but powerful benchmark: Can retirees realistically travel (or live abroad temporarily) on $100/day?

The short answer is ‘yes,' but with no shortage of qualifiers and caveats.

"Living on $100 per day would be fairly easy to do as a nomad, since you can easily find an apartment for rent for $1,000 or less per month in dozens of desirable countries, including in capital cities or in beach areas," said Tim Leffel, a travel book writer and author of the book A Better Life for Half the Price.

Leffel’s book covers 19 countries where living on less than $100 per day is feasible, and he says he and his wife now live in Mexico for less than $2,000 per month.

"That's without being at all careful about what we spend," Leffel noted. "We own our own home outright that we're regularly upgrading, but since most people in our city of Guanajuato pay $500 to $900 for rent, we would still be well under $100 a day for two of us even if we rented."

Leffel said there are cheaper places to live than in Mexico, even within Latin America. "Currently, that would include Guatemala, Nicaragua, parts of Panama, Colombia, much of Peru, Brazil, and Bolivia," he noted. Sometimes Argentina too, but it's a financial roller coaster there depending on what the government is up to."

"There are countries in Europe where people are spending far less, like Bulgaria, Albania, Hungary, and Romania," Leffel added.

How to start living abroad on $100 per day

Setting up stakes outside the U.S. for $100 or less per day is more of a mindset than a financial exercise, Leffel said.

"You don’t have to stretch a buck when living abroad," said Leffel. "Your expenses drop in half if you pick the right place."

He said that when in Mexico, for instance, "we go out to eat twice as much, attend more cultural events and don't even ask the prices when shopping for fruit and vegetables. We even have a weekly housekeeper for under $100 per month, for a three-bedroom/two-bath house plus an office."

Adopting that mindset means living like a resident rather than a tourist on a short vacation. "$100 per day may be sufficient for retirement travel if individuals can create a lifestyle similar to what locals live versus a tourist's 7 to 10 day vacation," said travel expert Jiayi Wang, founder of The Diary Of A Nomad.

Wang demonstrates this in Chiang Mai, Thailand, where her daily expenses average around $100. She typically spends $40 on a basic apartment or guesthouse, $20 on local meals, $8 on public transit, $12 on activities like cafes or museums, and $20 on miscellaneous needs like insurance, laundry, and mobile data.

Wang points out that staying longer allows you to spread your costs out over many months, including airfare, initial deposits, and utility setups.

Additionally, using local markets, eating at neighborhood restaurants, taking buses/trains, and renting apartments/homes for a month versus daily hotel rooms are great ways to save a buck when living on $100 a day, Wang said.

Navigating local banking and currency fees

Opening a local bank account abroad typically requires standard documentation: a passport or government ID, proof of local residency or a valid visa. Alternatively, multi-currency digital banks like Revolut or Wise offer easier workarounds for international travel.

ATM and card transactions also carry hidden costs. Swiping cards or making international ATM withdrawals can trigger foreign transaction fees and big out-of-network charges. This is especially the case when using credit cards to make cash advances. To limit these kinds of fees, you should carry a debit card that reimburses foreign ATM fees, including Charles Schwab or Capital One and a credit card that has no foreign transaction fees.

Finally, when a card terminal asks whether to pay in U.S. dollars or local currency, always choose the local currency. That's because choosing your home currency triggers Dynamic Currency Conversion (DCC), in which international banks charge inflated exchange rates and additional fees.

Visa thresholds and exit taxes

One major mistake U.S. retirees make when moving abroad is underestimating visa and residency costs, focusing primarily on airfare and rent.

“U.S. retirees often get surprised by renewal fees, border runs, the required insurance, or banking requirements,” said Dovi Geretz, Chief Technology Officer at SlickTrip, a real-time flight price alert platform. “Those expenses can add up quickly and disrupt even the most carefully planned long-term travel budget.”

Most popular destinations require a retirement or long-term residency visa to stay beyond tourist limits. While these programs attract international retirees, they carry upfront costs: application and legal fees, document translations, background checks, medical exams, and income verification. These requirements can easily add hundreds or thousands of dollars to a budget before signing a lease.

Retirees should also recognize that extended stays can trigger unexpected international tax obligations. Many popular destinations follow the 183-day rule, meaning that if you stay in the country for more than half the year, you may be considered a local tax resident subject to local income taxes in addition to your U.S. reporting.

Certain U.S. tax provisions, such as foreign tax credits, generally help citizens avoid double taxation. However, navigating dual filing requirements takes smart planning. U.S. retirees planning to split time between countries should track their days and work with an international tax specialist to ensure they don't accidentally trigger tax residency overseas.

Make sure to account for healthcare costs

One of the biggest mistakes people make when trying to determine how their retirement dollars will stretch while traveling is failing to include healthcare costs in their estimates.

"Medicare generally doesn’t pay for any medical treatment outside of the U.S.," Wang said. "Travel medical insurance or international coverage must be included in the costs of traveling and should never be considered an option, but rather a required expense."

Generally, travel medical costs are framed by the country where the insurance is needed. For instance, travel insurance in Costa Rica costs about $215 for a 12-day trip.

Medical insurance costs in Thailand, however, clock in at about $96 for the same 12-day trip. Consequently, it’s up to the traveler to determine how much of their $100-per-day budget should be spent on healthcare costs.

Renting longer term can help you save

Being creative about living arrangements can stretch a travel budget.

"Long-term rentals are much cheaper than short-term rentals," said Clay Cary, senior trends analyst at CouponFollow. He said that moving less often reduces transportation and hotel costs. "Therefore, slow travel is always more cost-effective."

Cary also advises living like a local to keep expenses low: shop at neighborhood grocery stores, use public transit, visit free cultural attractions, and eat where locals eat. Travelers often overlook hidden costs such as parking, transit passes, and daily upscale restaurant costs, which add up quickly depending on the location.

Location choice ultimately dictates the budget. As travel writer Tim Leffel points out, a $100-a-day budget goes much further in Southeast Asia than in Central America: "$100 per day would be tough in Costa Rica, but in Thailand, you could budget for it." He notes that in Thailand, you can cover rent, food, transport, entertainment, and healthcare for around $3,000 a month, or roughly $100 per day.

3 travel tips that accommodate a $100 per day budget

Use local transportation whenever possible: Usually, buses, trains, and metro systems are reliable and inexpensive when compared to taxis and rental cars," said Dovi Geretz, chief technology officer at SlickTrip, a real-time flight price alert platform. "Also, retirees who embrace public transit will save money daily and often experience destinations more authentically than travelers staying inside tourist bubbles."

Always choose destinations where healthcare is affordable and accessible. Many retirees underestimate how quickly medical costs can affect a travel budget.

"That’s why countries with quality private clinics, lower prescription prices, and affordable travel insurance options can help retirees protect both their health and long-term financial stability when overseas," Geretz said.

Eat where the locals eat, rather than rely on tourist districts or international chains: For inexpensive yet fun dining experiences, look for street markets, family-owned cafes, and lunchtime specials, as they often offer fresher food at a fraction of resort prices.

"Retirees who shop locally and occasionally cook at home can dramatically reduce daily expenses, all while enjoying a more immersive cultural experience," Geretz added.

Avoid these travel budget mistakes: Often, U.S. retirees overpay when moving abroad because they insist on having amenities they are used to at home, such as dishwashers or dryers, buying unneeded health insurance despite low local medical costs, or maintaining a car in walkable cities with cheap transit where a cross-town taxi might cost $4 and a bus just $0.50, Leffel said.

Phone charges can also break your budget. "An immediate and easy way that retirees can save each month significantly is evaluating their cell phone plan," said Thad Hwang, Founder and CEO of Goji Mobile.

Most Americans overpay by staying with mainstream carriers that hike rates or by buying excess data. Switching takes minutes, can save you $70 to $100 monthly without affecting coverage, and frees up more cash, Hwang noted. Additionally, many carriers now offer international roaming packages directly on existing lines, eliminating the need for third-party eSIMs while traveling.

Remember you're not on vacation

Perhaps the biggest mistake in living abroad on $100 per day is treating relocation and traveling as a permanent vacation.

“Many people underestimate how fast the budget can be eaten by restaurant meals, transportation, tours, and accommodation in hotels,” Cary said. Another error is failing to calculate additional fees, including taxes, resort fees, parking, and travel insurance.

“Retirees tend to move too frequently,” Cary said. “Flying and relocating every couple of days increases the overall expenses by two times. Those who spend more time in the same place get a better value for their money."

What does $100 per day buy retirees abroad?

Methodology: Estimated budgets are based on housing costs from Numbeo and Expatistan, health insurance estimates from international insurers including Cigna Healthcare and Allianz Partners, and retirement guidance from the U.S. Department of State, International Living and the Social Security Administration regarding overseas benefits. Costs are representative mid-2026 estimates for a single retiree renting a modest one-bedroom apartment and will vary by neighborhood, exchange rates and lifestyle.

Why retirees like it

• Relatively inexpensive private healthcare 
• Established expat and retiree community 
• Low-cost public transportation and dining 
• Long-standing retirement visa options

Hidden costs

• International health insurance premiums typically increase substantially after age 65. 
• Retirement visas require financial documentation and periodic renewals. 
• Flights to and from the U.S. can significantly affect annual spending. 

Primary sources: Numbeo; Expatistan; International Living; Cigna Healthcare Global; Allianz Partners; Thai immigration guidance.

Why retirees like it

• High-quality healthcare system 
• Safe communities and reliable infrastructure 
• Well-developed transportation network 
• Residency pathways available for qualifying Americans 

Hidden costs

• Housing costs in Lisbon and Porto have climbed sharply in recent years. 
• Rental inflation has outpaced overall inflation in many coastal markets. 
• Residency, taxes and healthcare planning can increase total costs. 

Primary sources: Numbeo; Expatistan; International Living's Global Retirement Index; Portuguese government residency guidance; OECD housing statistics.

Why retirees like it

• Close proximity to the U.S., making family visits more affordable 
• Large English-speaking retiree communities 
• Lower housing costs than many U.S. retirement markets 
• Well-developed private healthcare system in many cities 

Hidden costs

• Medicare usually does not pay for healthcare outside the U.S., so retirees must buy private insurance, local coverage, or pay out of pocket.
• Buying property near the coast or an international border requires setting up a bank trust and paying fees.
• Residency visa requirements and renewal fees are increasing.

Primary sources: Numbeo; Expatistan; International Living; U.S. Department of State country information; Centers for Medicare & Medicaid Services guidance on overseas coverage.

Note: These estimates represent moderate lifestyles for a single retiree renting locally in mid-2026. Actual costs vary based on exchange rates, housing choices, healthcare needs, and travel frequency. They are intended as planning estimates rather than fixed budgets.

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Most "America 250" travel guides will point you toward the crowded, cobblestoned streets of Philadelphia or Boston — and while those historic hubs certainly earned their place in the history books, the true American story doesn't end at the original 13 colonies. If you are looking to give your grandchildren a deeper sense of the nation's heritage, the best classroom isn't a packed museum line; it's the open road.

These four itineraries trade predictable monuments for sweeping coastlines, ancient mountain passes and hidden historic stops, offering a compelling backdrop for passing down stories and building memories.

Out West: the Pacific Northwest & the corps of discovery

Trace the final leg of the expedition that reshaped America: a road trip following the Columbia River Gorge from Portland to Astoria's Fort Clatsop, ending where Lewis and Clark first saw the Pacific at Cape Disappointment.

The route: Portland to Columbia River Gorge to Astoria (Ft. Clatsop) to Cape Disappointment

Columbia River Gorge: Drive past stunning waterfalls and stop at the Columbia Gorge Discovery Center to learn how the expedition navigated these treacherous waters. The Columbia Gorge Discovery Center’s Raptor Program is capable of wowing kids and adults. You can visit the enclosure of resident bald eagles Liberty and Ferguson, ages 17 and 23 respectively, for free.

Lewis and Clark National Historical Park (Fort Clatsop): Located in Astoria, Oregon's oldest city, is a replica of the log fort where the expedition spent the brutal winter of 1805–1806. Kids can interact with rangers dressed in buckskins, try their hand at making candles from tallow and explore the dense coastal rainforest.

Cape Disappointment State Park: Cross into Washington to see where the expedition finally saw the Pacific Ocean. The dramatic clifftop lighthouse is unforgettable. It's still in use and open for tours. Visitors can also wander through the ruins of World War II-era bunkers and coastal defense batteries.

• Summer bonus: Chasing waterfalls & picking berries. Summer brings long, gloriously sunny days to the Pacific Northwest. Stop at the 620-foot Multnomah Falls and hike without needing a rain jacket. Take a detour through the Hood River Fruit Loop, where the kids can pick fresh berries and cherries.
• Fall bonus: The salmon run & coastal mist. October brings the legendary salmon runs to the Columbia River. You can visit the Bonneville Lock and Dam to watch thousands of massive salmon leap up the underwater "fish ladders." Plus, the coast at Cape Disappointment gets its signature dramatic, misty autumn aesthetic.

The South: The southern campaign & Overmountain victory (North Carolina & South Carolina)

While the Northeast gets the credit for 1776, the Revolutionary War was actually won in the South. This trip blends rich Southern history with the spectacular background of the Great Smoky Mountains. The Carolinas are hosting extensive "SC250" and "NC250" events, featuring large-scale autumn encampments and live blacksmithing.

The route: Charlotte (NC) to Kings Mountain to Cowpens (SC) to Asheville (NC).

Kings Mountain & Cowpens National Battlefields: These two parks preserve the sites of back-to-back American victories. The Kings Mountain State Park visitor center offers an interactive junior ranger program that explains how frontier "Overmountain Men" turned the tide of the war. Cowpens National Battlefield commemorates a decisive battle in the Revolutionary War, which ended in defeat for British forces under General Charles Cornwallis.

The mountain finish: End the trip by driving into Asheville to experience the lush greenery in the summer and peak foliage of the Blue Ridge Mountains in the fall.

• Summer bonus: Lake Lure & mountain streams. Beat the Southern summer heat by sliding into the cool, mountain waters. You can stop at Lake Lure (where Dirty Dancing was filmed) for a beach day surrounded by green mountains, or take the kids gem mining and tubing down the French Broad River.
• Fall bonus: Peak Blue Ridge foliage & reenactments. October is the absolute pinnacle for leaf-peeping in Asheville. Additionally, early autumn is when the park service hosts the Overmountain Victory Trail celebrations, featuring massive living-history encampments where volunteers walk the exact path the frontier militia took to the battlefields.

The Southwest: a crossroads of cultures

To truly celebrate the American tapestry for America 250, look to the Southwest, where Indigenous, Spanish and Anglo histories collided to shape the nation. Long before the first bricks of the thirteen colonies were laid, these high-desert landscapes were home centuries of rich cultural exchange.

The route: Albuquerque to Santa Fe to Taos

The Santa Fe Plaza: Celebrate America's diverse roots in the oldest capital city in the U.S. Families can explore the Palace of the Governors, part of the New Mexico History Museum, and buy authentic jewelry directly from Native American artisans under the portal.

Pecos National Historical Park: Just outside Santa Fe, this park features the ruins of an ancient Pueblo village alongside a 17th-century Spanish mission church, right on an old Santa Fe Trail trade route. It brilliantly illustrates the centuries of history that predated 1776.

Taos Pueblo: Take a day trip to a living Native American community that has been inhabited for over 1,000 years. Located at the base of the beautiful Sangre de Cristo Mountain range, this National Historic Landmark is open on weekends only from 9 am to 4 pm. If you've got an American Girl Doll fan, you can visit the Hacienda de los Martinez, which was the inspiration for the doll Josefina Montoya's home. It's a seven-minute drive from downtown Taos.

• Summer bonus: Santa Fe Indian Market & alpine hikes. While lower elevations are hot, Santa Fe and Taos are at high altitudes and stay quite comfortable. (For those who might be sensitive to altitude, keep in mind that you may need time to acclimate.) August brings the world-famous Santa Fe Indian Market, a celebration of Native American art, music and food. You can also take the chairlift up Taos Ski Valley for high-alpine summer hiking.
• Fall bonus: The balloon fiesta & roasting chiles. Early October features the Albuquerque International Balloon Fiesta, when hundreds of hot-air balloons fill the sky at dawn. The smell of autumn, and the official "state aroma", in New Mexico is the aroma of fresh green chiles being roasted in giant tumbling drums on every street corner.

The Midwest: innovation, labor & The Great Migration (Illinois & Indiana)

The trip through the Midwest tells the story of how America transformed from an agrarian society into an industrial superpower. Taking a road trip through Illinois and Indiana reveals the grit, innovation and diverse voices that built modern America.

The route: Chicago (Pullman) to Indiana Dunes to Fountain City (Coffin House) to Indianapolis

The Pullman Centennial: Visit the Pullman National Historical Park, a preserved 1880s company town that highlights the American labor movement and the pivotal role of the African American Pullman Porters.

Indiana Dunes National Park: Just across the state line, hike towering sand dunes framed by brilliant oak trees, celebrating America's conservation and National Park legacy. As part of their "The 1966 Hiking Challenge," the park is offering 19 weekly ranger-led hikes every Saturday at 8:00 am through August.

The Indiana State Museum (Indianapolis): They are hosting dedicated America 250 programming, including exhibits on the Underground Railroad in the Midwest, showcasing the region's commitment to freedom and human rights.

The "Grand Central Station" legacy: This unassuming brick house in Fountain City, Indiana, is where Levi and Catharine Coffin helped more than 1,000 freedom-seekers escape to safety. It's arguably the most successful "station" on the entire Underground Railroad.

They have an interactive visitor center next to the historic home that does a fantastic job of translating this heavy history into digestible, moving stories for children. You can tour the home and see the internal hiding places, including a hidden upstairs closet where entire families were concealed behind furniture, and a basement kitchen built with a secret indoor well so neighbors wouldn't see the Coffins hauling extra water for guests.

• Summer bonus: Lake Michigan beach days. This history trip can turn into a legitimate beach vacation. Indiana Dunes National Park features miles of sandy beaches and warm lake water that feels like the ocean without the salt. In Chicago, you can take a boat cruise down the river to stay cool.
• Fall bonus: Apple orchards & haunted trails. The drive from the Indiana Dunes down to the Coffin House takes you right through Indiana’s agricultural heartland. Stop at Huber's Orchard or Tuttle Orchards for fresh apple cider slushies, pumpkin picking and corn mazes. Additionally, Indianapolis hosts fantastic historic autumn ghost tours that weave local history with spooky seasonal fun (best for older kids or teens).

More on America's 250th Birthday

• America's Cost of Living at 200 vs 250: How Affordable is American Life Now?
• America at 250: The 3 Economic Headaches That Haven't Changed Since 1976
• How Has Retirement Changed in the Last 50 Years? Take Our Quiz
• Financial Advice From America's Founding Fathers
• Which Presidents Are on the Social Security Payroll?

Think you need $1 million or more to retire happily? You're not alone. Northwestern Mutual's 2026 Planning & Progress Study found that Americans think they need $1.46 million to retire comfortably. High-net-worth Americans think they need even more — an average of $2.67 million. Meanwhile, conventional wisdom says you should save at least 10 times your annual salary.

But here's the reality: many retirees do just fine with far less.

You don't have to spend your entire working life chasing a seven-figure benchmark. Combined with Social Security and smart estate planning, a retirement fund of $300,000 to $400,000 is often enough to enjoy a comfortable, stress-free retirement.

Matt Twiford, fractional CFO and Managing Director of the Pegacom Group LLC, notes, "While it would be nice to have $1 million in retirement, not having it doesn't mean you can't enjoy a good quality of life and feel somewhat financially free."

Here are 6 practical reasons why a "modest" retirement fund may be more than enough to be happy in your golden years.

1. Keeping your spending in check prevents lifestyle creep

On average, Americans have roughly one year's worth of their current annual income saved in tax-advantaged accounts. For most households, that figure hovers around $80,000, according to a SmartAsset study. That's far less than $300,000 and worlds away from the magic number of $1.46 million. Other surveys suggest that only about half of retirees have any retirement savings at all.

Even so, retirees who paid off their mortgage years ago and have annual expenses of about $45,000 to $50,000 avoid the stress that can come with maintaining a more extravagant lifestyle — or lifestyle creep (increased spending on non-essentials and making luxuries feel like necessities).

Paying down or paying off a mortgage and resisting expensive vehicles and gadgets can save thousands over time and make a happy retirement possible even with limited savings.

2. Moving to a lower-cost area can stretch your retirement dollars

Location plays a big role in retirement finances. Living in high-cost states such as Hawaii, California, New York, or Massachusetts takes a much bigger bite out of your budget than living in places such as Tennessee, Arkansas, Oklahoma, or Missouri. Choosing a lower-cost state frees up more money for travel, family, or charitable giving, rather than sinking more cash into housing, taxes, utilities and healthcare.

“My advice would be to start by evaluating where you are and what you have,” says Twiford. “Many retirees own their home outright and have little if any debt, along with a large Social Security check. That's great if that's the case. Others may rent and have few assets, but hopefully some funds from Social Security coming in. Regardless of where you are, analyze it honestly and be truthful with yourself.”

3. Social Security and savings can provide a steady base income

As of 2026, the average monthly benefit for retired workers is approximately $2,071, or about $25,000 annually. While that's a good number, it's probably not enough to live on each month for most people. However, a couple with combined benefits of $40,000 to $50,000 per year only needs about $20,000 to $40,000 from savings to reach a $60,000 to $70,000 lifestyle.

For example, claiming $2,000 per month in benefits at age 62 with a life expectancy of 87 yields $600,000 over your lifetime. But because Social Security payouts grow the longer you delay, waiting until age 70 boosts your annual benefit by roughly 80% compared to starting at 62.

4. Low-risk investing can generate a reliable income

Generating income from investments while also preserving hard-earned savings is key, especially for those with a modest retirement fund. When savings are limited, low-risk investments are often the smartest move. That's because protecting your principal takes priority when you don't have time to recover from market losses.

Most financial experts recommend taking a more conservative investment path as you near retirement. Instead of risky, higher-yield investments, consider low-risk investments, such as bonds, Treasury notes, money market funds, fixed annuities, and CDs.

Robert Laura, retirement expert and co-founder of Retirement Coaches Association, suggests considering preferred stocks, another asset class that doesn't get much attention but can put more income in a retiree's pocket. Preferred stock can be particularly helpful to a retiree with a more modest nest egg. "For example, the iShares Preferred and Income Securities (PFF) ETF currently yields over 5%."

While it's true that all investments carry some level of risk, low-risk assets are typically less likely to fail.

5. Planning for healthcare costs now removes one of retirement’s biggest threats

A healthy 65-year-old woman can expect to spend around $340,000 on healthcare over the course of her lifetime. A 65-year-old man can expect to spend about $297,000, according to Milliman's 2026 Retiree Health Cost Index.

Those figures assume the person has original Medicare, Medicare Part D for prescription coverage, and a Medigap Plan G supplement plan. However, these figures do not include long-term care, which can easily add up to six figures. Unfortunately, most retirement plans can't cover a bill of that size.

"Max funding an HSA can help reduce these costs and thus withdrawals from an IRA or other investment accounts," says Laura of Retirement Coaches Association. "Additionally, allocating funds to a Roth IRA for this purpose, since they come out tax-free in retirement, can also play a role in reducing taxes on distributions. It's also worth noting that some large companies do offer health care to part-time employees."

Also, by taking care of your health, getting routine tests and screenings (many covered by Medicare), getting recommended immunizations, and practicing healthy habits, like not smoking, you can enjoy a higher quality of life and stretch your retirement savings even further.

6. A cash buffer helps during tough times

Life happens. Whether it's unexpected car or home repairs, a health issue, or rising inflation, things don't always go as planned. That's why retirees with more modest lifestyles usually keep a three- to six-month supply of cash in an emergency fund to cover living expenses — just in case.

Having a little extra cash on hand helps create a financial buffer that can keep you afloat without relying on credit cards or high-interest loans.

According to NerdWallet's April 2026 savings report, nearly half (45%) of Americans surveyed said they are actively saving money in a bank account for emergencies. Since an emergency can happen at any time, it's probably best to put your emergency fund in a high-interest savings account for easy access rather than a long-term investment fund.

Why a "modest" retirement fund can be enough

In the end, a "modest" retirement fund can be more than enough to be happy. By focusing on smart habits around spending, investing, saving and everyday life, you may discover you already have more than enough to live comfortably.

The real secret isn't a massive nest egg. Instead, it's having the freedom, flexibility and peace of mind to enjoy all of the years ahead. After all, your retirement shouldn't be only measured in dollars, but by how well your money lets you live the life you actually want.

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Retirement is supposed to be carefree and financially predictable, but that doesn't mean you're exempt from recurring bills. That's particularly true if you own a home. Everything from maintenance to insurance comes at a cost. How you pay those bills — all at once or over time — can have a big impact on your savings and cash flow.

The secret to saving money is timing. Some annual expenses offer discounts if you lock them in early, while others are best kept flexible so you can shop around or keep your money earning interest.

To help you figure it out, here are four everyday bills you should wait to pay to save some serious cash.

4 bills retirees should not prepay

1. Heating oil

For retirees who value predictability, locking in heating oil rates ahead of winter provides peace of mind amid volatile energy markets, but they typically pay extra for that relief.

A fixed-rate plan locks in your price for the entire season, protecting you from cold-weather price spikes. But you won't benefit if market prices drop. A capped-price plan sets a ceiling and lets you pay lower rates if prices fall, but dealers usually charge an upfront protection fee for that option.

The cheapest option, according to nonprofit consumer energy groups and state agencies, is a floating-rate plan. With that, you pay the current market rate and that's it. Over multiple years, those savings can add up.

2. Electricity

Just like heating oil, you can lock in your electricity rate for the year, but doing so can cost you if electricity rates decline.

Plus, you have to be careful of the fine print when signing up for a fixed-rate electricity contract. Some may have early termination fees, monthly recurring charges, and promotional rates that spike once the initial period expires.

3. Auto and homeowners insurance

Who doesn't love the convenience of auto-renewal for auto and homeowners insurance? It's one less thing to worry about, and doesn't loyalty always pay? It turns out it's better to shop around each year to ensure you're getting the best rates.

How much can you actually save? According to a LendingTree survey, drivers reported saving at least $100 per year simply by switching auto insurance providers.

Use the Bankrate tool below to connect with auto insurance providers and compare quotes:

4. Home warranty contracts

Home warranty contracts are supposed to protect you from expensive repairs. For a fixed annual fee, you won't have to worry if the furnace dies, a pipe bursts or the AC is on the fritz. Often, you get high service call fees, strict restrictions on what is covered and exclusions hidden deep in the fine print.

Instead of locking up money in a warranty contract that will require you to pay out of pocket anyway, put it in a high-yield savings account where your cash earns interest until it's needed for a repair.

Keep control of your retirement

Cash is king; it couldn't be truer in retirement, which is why patience pays off when it comes to some everyday expenses.

By shopping around annually and keeping your cash accessible in high-yield savings, you'll ensure your money stays liquid and under your control.

Use the Bankrate tool below to search for today's top high-yield savings account offers:

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When Jude and Matt Bell got engaged, they faced their first major argument: minimalist or floral dinnerware? As a money-management writer, Matt notes that these small decisions often reveal deeper differences you bring into a marriage.

After decades of disagreements, you’d think couples would have mastered the art of compromise by retirement age. Alas, that doesn’t seem to be the case for many. Studies show that more than one third of divorces today occur between people 50 and older — what’s often called "gray divorce."

The good news, financial experts say, is that the same money decisions that strain a marriage can also strengthen it. While money might not buy a happy marriage in retirement, these financial moves can help keep partners aligned.

1. Build a plan that you both believe in

What works best to keep couples together might not be found in a therapist’s office or in the bedroom. Rather, it sits on a printed page or screen.

"One of the biggest things that keeps couples together in retirement is having a financial plan they both understand and believe in," says Nathan Sebesta, CFP® and founder of Access Wealth Strategies.

The confidence a plan provides is measurable. According to Fidelity’s 2026 State of Retirement Planning study, Americans with a financial plan in place are more than twice as likely as their peers (83% vs 38%) to feel confident about their retirement prospects.

Bell agrees a plan is invaluable, especially when spouses disagree about how quickly to spend down their savings, and says it’s often worth working with an adviser who can bring objectivity.

"The ideal is to create a plan where your agreed-upon lifestyle needs are met for the rest of your lives," he says.

2. Go on a 'money date'

A plan only works if couples keep talking. Talking about money, specifically, is something many couples avoid. The Fidelity Investments Couples & Money study found that 49% of couples steer clear of financial conversations to head off arguments.

Bell’s fix is what he calls "money dates." "Get out of the house and away from all the distractions, and then talk about money," he says. "What’s working? What isn’t working? What would you like to pursue, and what will it take financially to get there? Establishing the habit of talking about money will be so good for your marriage. It’ll keep you aligned and working as a team."

3. Talk about what money means, not just what it costs

As with the artistic design of dinnerware, what couples argue about is often deeper than the dollars.

"One of the biggest mistakes couples make in retirement is assuming they’re arguing about money when they’re actually arguing about what money represents," says Laura Mattia, author, CFP® and financial adviser at Wealth Enhancement. "One spouse’s desire to spend may reflect a desire for experiences, freedom or making the most of healthy years ahead. The other spouse’s reluctance to spend is often rooted in a need for security and fear of becoming financially vulnerable later in life."

The healthiest couples, Mattia says, don’t start by asking, "Can we afford it?" They start by asking, "What are we each trying to accomplish?" As she puts it: "The breakthrough happens when couples stop debating the money and start discussing the values and fears underneath it."

4. Commit to full transparency

A potential relationship killer at any stage of marriage is financial infidelity. Many people take it seriously: a Bankrate survey found 43% of U.S. adults believe keeping financial secrets is at least as bad as physical cheating. Yet, nearly half of couples admit they don’t know everything about their partner’s finances.

Sebesta advocates for complete transparency, though he points out that the financial accounts themselves matter less than the openness. "You don’t have to combine every account, but both spouses should know where everything is, how the household finances work and what happens if something happens to the other," he says.

5. Build in financial margin and agree on how fast to spend it down

"How fast do we spend this down?" can become a major marital question in retirement. One spouse wants to enjoy the money now; the other fears outliving it. Even couples who've saved diligently can find themselves at odds over how to enjoy it. A Western & Southern Financial Group survey found just 43% of married Americans completely agreed on what retirement would look like.

Bell’s antidote is margin, a gap between income and essential expenses. Living primarily on one income early in his marriage created that cushion, and the same principle carries into retirement.

"For anyone planning for retirement, build margin into your plan," he says. "That means creating a plan that doesn’t require everything to go perfectly. That’ll keep stress low and flexibility high."

But he cautions against being so conservative that couples miss out. "You don’t want to run out of money, but you also don’t want to die with so much in reserve that you missed out on some things that would have mattered to you," he says. One approach Bell favors is "giving while you're living," such as helping adult children with a down payment on a home so you get to enjoy watching the impact.

Mattia frames the balancing act as a shift in perspective. "Common ground emerges when couples stop treating retirement as a purely financial transition and start treating it as a life transition," she says.

6. Invest in purpose and in the marriage itself

Retirement can strip away a major source of identity and structure: work. One peer-reviewed study found that fully retired people reported a significantly lower sense of purpose than those still working or partially retired.

Bell calls lost purpose "a huge factor" in late-life struggles. His advice is to decide, before retiring, how you’ll continue to use your skills and passions. "Just because you’re no longer drawing a paycheck doesn’t mean you're not needed," he says.

The same intentionality applies to the marriage itself. "If you want to be good at marriage, do the same," he says. "Go on a marriage retreat. Read books about marriage together." He points to research suggesting that couples can get the most joy per dollar from spending on shared experiences.

Catherine Valega, CFP® and adviser at Green Bee Advisory, suggests couples map out those experiences deliberately. Do the ambitious travel while you have the energy, she advises, and plan and budget for how you’ll want to spend time with family as you age.

"Think of retirement as a starting line, not an end line," she says. "You could be spending 40 years in this phase of life."

In the end, a lasting marriage is built on navigating decisions large and small, right down to the pattern on the plates. Whose turn it is to wash those plates, on the other hand, is one problem money will never solve.

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When Serena Williams stepped away from tennis in 2022, she very deliberately said, writing in Vogue (paywall), that she "never liked the word 'retirement.' "

"Maybe the best word to describe what I'm up to is 'evolution.' I'm here to tell you that I'm evolving away from tennis, toward other things that are important to me," she wrote, in what served as her announcement that she was, at least temporarily, leaving the profession.

She said she was making the move because she wanted to grow her family, and, as a woman, she couldn't do that without impacting her career. She also said she was interested in trying other work, such as venture capital. With that very specifically worded announcement, Williams left her industry — with the door still open for her to return.

In the four years since then, Williams did exactly what she said she would. She had a second child and ramped up her work with Serena Ventures, her investment firm. When she wanted to, she went back to that door she'd left open, accepting a wildcard to play at Wimbledon and joining doubles tournaments at the U.S. Open this summer.

With that, she established what I'll call the Serena Williams Rule of Retirement: Rather than plan a binary retirement, plan to give yourself options.

Let your career 'evolve'

When you've spent decades building and prioritizing your career, the idea of one day abandoning it can seem terrifying and almost nonsensical. That's true even if you've already ascended to the C-suite and built up a more-than-sufficient nest egg.

"Why are we stressing out like that?" said Pam Krueger, founder and CEO of Wealthramp and a Kiplinger contributor. "Instead, have you ever seen a dimmer switch? Forget the on-and-off; it's a dimmer switch. And that's what Serena is doing, that's what her rule is, that's what she's teaching us."

This is largely why Krueger, a financial literacy advocate, urges people of all ages to "stop planning for retirement" and instead plan for optionality.

It's easy to say that of course, Williams can wave a magic wand for a Grand Slam wildcard and do whatever she wants after ascending to the top of her industry and making many millions of dollars. But what about us mere mortals?

Optionality means keeping multiple paths open. You might choose a phased retirement, in which you gradually scale back your hours, take on part-time work, or accept "fractional" C-suite roles.

Maybe you want to shift industries or work part-time on a passion project, which can mean anything from mentoring younger professionals to working as a handyman after decades in corporate life. You could even start a new venture, whether that's launching a consulting business or selling handmade crafts.

Giving yourself these options requires both a mindset shift and practical planning. A "mindset shift" sounds easier, but in practice, this might be the harder part. We are hardwired to believe the story that you work a career for a few decades, then retire, never to do anything productive again.

That's why having an icon such as Williams set an example is so important, because it can challenge how we, as a society, think a career path should go.

How optionality leads to a happier life

There are many reasons why giving yourself options, rather than restricting yourself to "retired" or "not retired," can make your life easier and happier.

1. Save your savings. On the practical side, picking up some work after you stop working full-time, even if you're making a fraction of what you made, means you don't have to dip as much into your savings. That leaves more of your nest egg untouched, allowing it to stay invested and keep growing.

"The physics of money are that the more you can leave the biggest chunk of money in your retirement account to draw down less at the beginning of those years, the more you're allowing the compound interest to work for you," Krueger said.

Working a little can save your savings in other ways. Serena's sister, Venus Williams, for example, has also never formally retired and plays tournaments a handful of times a year. Last year, she half-jokingly said during an on-court interview that she "had to come back for the insurance." Jobs, even part-time ones, can provide benefits such as healthcare that can preserve your savings a little longer.

2. You give yourself purpose and fulfillment. After retiring, some people become depressed or discontent because they feel that they're no longer contributing to the world. By picking up some work or staying connected to your past industry, you can maintain that feeling of purpose and accomplishment.

3. Make use of your skills. You spent years building up skills that can be applied in different ways. Serena Williams, for example, was obviously an athlete, but at the same time, she was learning the ins and outs of investment as she was seen as an investment by sponsors. She then applied that experience to the venture capital world as an investor herself.

The skills and expertise that you gained don't have to disappear once you step back from your 9-to-5. You can find other ways to use them. This is also a way for you to show respect for yourself and trust in your years of experience.

4. Learn something new. Many studies have shown that learning new things makes people happier. By trying out something different in your later years, you give yourself opportunities to keep stretching your brain, which will make you happier.

Returning to your industry

Maybe, as did Williams, you want to leave yourself the option of returning after you leave full-time work. Here's what to keep in mind:

• Don't burn your bridges. Ensure you're respectful as you walk out the door.
• Nurture your relationships. If you had regular golf outings with colleagues, maintain those, within reason. Make time for occasional phone calls with people in your network. These steps will ensure that if the right opportunity arises, the people who are still there will have you in mind.
• Be open about continuing work. Make it apparent that you're still open to picking up work. Sometimes that's as simple as saying exactly that when you talk to former colleagues, or, if you're doing part-time or side gig work, sharing stories about it on a network such as LinkedIn. (In Williams' case, that was sharing videos of herself on courts with her family.)
• Don't expect immediate triumph. If you do return to your old work, manage your expectations. People are often brought back to manage times of crisis or to hold a boat steady between leadership, such as an interim executive. Sometimes triumph is simply keeping a ship afloat. Sometimes, as with Williams at Wimbledon, the triumph is in showing up and showing it can be done.

Don't be surprised if returning to the office is a little more intimidating than you remember. Environments change and turnover happens. Just remember that you were brought back because the company or industry feels you have something to offer. Carry that confidence with you, along with an open mindset regarding changes that occurred after you left.

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It’s easy to see why Florida is a haven for retirees. Between the year-round warm weather, miles of coastline, and zero state income tax, the Sunshine State is already home to roughly 5 million people 65 and older.

However, relocating doesn't guarantee a lower cost of living, even for those moving from high-cost northern states. Unforeseen expenses in Florida can easily derail an otherwise solid retirement budget.

"Florida is great because there is no income tax," says Andy Smith, a certified financial planner at Edelman Financial Engines. "But people have to look at the total cost of living instead of focusing on one particular tax advantage."

From HOA fees to hefty insurance premiums, before you make the move, be sure to budget for these unexpected expenses.

1. Sky-high HOA fees

Whether you live in a condo or a community, homeowner's association fees are a fact of life in many Florida communities, and that fee can get expensive.

Florida leads the U.S. with the most expensive HOA fees, with seven of its cities charging the highest HOA fees, according to Realtor.com. Take Miami, for one example. The owner of a $425,000 home in Miami pays $617 a month in HOA fees.

2. Surprise condo special assessment fees

Ever since the 2021 collapse of the Surfside condo in Miami, Florida, associations with buildings three stories or higher are subject to mandatory structural inspections and must have fully funded reserves. When condo associations don't, they can charge unit owners a one-time special assessment.

"Many of these buildings are quite old," says John Gillet, CEO and founder of Gillet Agency. "You should thoroughly investigate the condo before making a financial move."

If you can't get a sense of how the condo association is run, what the financials look like and the structure of the building and the unit, you should hire a consultant to research before buying, Gillet said. An assessment fee, if ever required, can range from a few hundred dollars to tens of thousands of dollars.

3. Rising insurance premiums

Expect to pay more than the national average for insurance in Florida, whether it's homeowners, health, or auto. That's across the board in the state, and even higher in certain metro areas. "Insurance is very, very expensive," says Michael Cabanas, a regional managing director at Fiduciary Trust and a longtime Miami resident. "If you live in a flood zone, flood insurance is required by law, and it's not cheap." The same goes for auto insurance. Florida is among the costliest states for auto insurance, according to a U.S. News & World Report ranking.

4. Year-round utility bills

Florida electricity rates are below the national average, but residents' monthly utility bills are among the highest in the country. The reason? Year-round heat and the need to stay cool.

"Instead of two or three months, you pay for eleven months out of the year," says Cabanas. "That's an expense some northeasterners may not anticipate when they move down here."

5. Lack of caregivers

Supply and demand are on display in Florida when it comes to caregiving. As retirees flock to the state, demand for caregivers is rising, driving up the cost of care. In fact, Florida ranks last in caregivers, with just 17 personal care and home health aides per 1,000 adults aged 65 and older. That compares to the national average of 65 per 1,000, according to America's Health Rankings.

6. Property tax resets

Florida caps annual property tax assessments for existing homeowners at 3%, but when a retiree buys a home, that number resets to the market rate. When they get their tax bill in year two, homeowners could be in for a big shock when their property taxes are double or triple what the previous owner paid.

Calculate everything before you make a move

Just because there are unexpected costs associated with moving to Florida doesn't mean you shouldn't make the move. Every town, city and state has different costs that may offset tax breaks. The good news is that with a little research, you can figure out what they are ahead of time and determine if the Sunshine State still makes financial sense for your retirement.

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Sometimes, punching the clock for the very last time can feel more unsettling than exciting, even if your biggest fear isn't running out of money. Instead, it might be losing the daily structure, work friendships, or the purpose and identity that the workplace provided.

The good news? There are both practical and psychological signs that you're truly ready for retirement, and on your way to enjoying one of the best chapters of your life.

Here are 8 key signs you'll thrive in retirement — even if part of you is quietly panicking.

1. You're already practicing retirement

If you've already started experimenting with having spontaneous days — whether during long weekends, vacations or through phased work — and found yourself energized rather than anxious, that's an indicator you're ready to retire.

People who thrive in retirement often discover they can create their own rhythm. They replace the old 9-to-5 with new hobbies, volunteering, exercise, taking classes, or spending more time with the grandkids or other family — and they do it without feeling particularly anxious or guilty.

Rod Mitchell, Psychologist and Clinical Director at Emotions Therapy in Calgary, explains that one indicator of how prepared someone is for retirement is whether they have developed their own daily structure during unscheduled periods. "The people who tend to thrive in retirement are those who feel calm, not anxious, when they look at an empty calendar for the coming week," Mitchell said.

2. Your finances give you real breathing room

Financial security is the foundation of a happy retirement. You don't need to be wealthy, with the magic number of $1.46 million in your pocket. However, you should have a clear picture of your income sources from Social Security, retirement accounts, savings and investments, and a realistic withdrawal plan in retirement.

A good rule of thumb is that once your everyday expenses are covered with breathing room and your emergency fund is solid, you can shift your focus from survival to lifestyle. From that point, retirement calculators and annual financial reviews turn leftover money worries into actionable plans for a comfortable future and a happy retirement.

3. You've got a life beyond work

One of the strongest predictors of happiness in retirement is having a few (or many) interests and relationships outside of work. If you have friends, community groups, or passions that are not specific to your job title, you're already ahead of the game.

Elizabeth Lombardo, PhD, Concierge Coach at Elizabeth Lombardo International, LLC, says that since we are all social creatures, having strong relationships outside of work is a step toward ensuring you thrive in retirement. "If your entire social circle revolves around your job, you might worry about loneliness. Cultivating new friendships through community groups, hobbies, or volunteering can help you build a supportive network that sustains your happiness in retirement."

4. You're curious about the future

A subtle but telling sign you are anticipating what's yet to come is shifting your thinking from "I'll miss the office" to "I wonder what I'll try next."

Retirement-ready individuals tend to feel some curiosity and excitement when they think about life beyond work. They may be itching to talk about travel, learning a new skill, starting their own small business, or finally tackling that list of long-overdue projects.

"The happiest retirees are those who have planned for the transition," says Stuart Schiffman, Founder and Principal at Compound Wealth Advisors. "They take into account the time they have left, the goals they want to achieve for themselves, and the values they want to instill as a legacy for future generations."

5. You have a flexible plan for the future

Thriving in retirement doesn't require a minute-by-minute schedule, but having some structure helps. For example, Monday for exercise and volunteering, Tuesday for grandkids and yard work. Allowing yourself the flexibility to change your plans is what separates those who flourish from those who feel at loose ends.

Financially, this also means having a flexible spending plan that takes into account healthcare expenses, travel costs and money leftover for fun, without derailing your nest egg.

6. You're comfortable with a slower pace

Work often defines who we are. A key psychological sign of a happy retiree is when you start separating your self-worth from your job title. If you can imagine introducing yourself without mentioning what you used to do for a living — and feel okay about it — you're making progress.

"This perspective allows retirement to represent a period of potential personal development rather than an end to previous experiences," said Dr. Lauren Grawert, MD, Clinical Advisor at The Garden Recovery and Wellness.

7. Your physical and mental health are priorities

Preparing to succeed in retirement means taking care of your physical and mental health with regular checkups, physical activity, social connections and good sleep.

On the financial side, long-term estate planning and health care cost estimates are factors you need to consider when laying out your retirement budget. Long-term care is expensive, and preparing ahead of time can make all the difference between a stressful and stress-free retirement.

8. You're more excited than scared about the future

It's normal to have mixed emotions about retirement. But if feelings of possibility and relief are starting to outweigh the fear of losing the structure of the workplace, you're ready to kick the day job goodbye. Retirees who thrive treat the transition like any big life change, with preparation, patience and a willingness to adjust.

Make sure your money is working for you

A big part of thriving in retirement is knowing your money is working for you. Here are a few practical tips that can help reduce any anxiety you might be feeling:

• You've stress-tested your estate and retirement plans against market downturns, inflation and a longer lifespan.
• You maintain a diversified portfolio with some conservative investments as you age.
• You've considered part-time work, consulting, or a small "retirement business" as a way to phase into retirement.
• Healthcare and long-term care costs, including Medicare supplements, HSAs, or insurance, are factored in.

Give it a try first

Lombardo offers these final words of advice: "I often encourage people to try out retirement by taking an extended vacation where they are completely cut off from work. This is not feasible for everyone, but for those who are considering retiring and not sure that they can handle it, an extended period away from work allows them to start to develop some of the important components of a healthy retirement."

Do you recognize any of these signs in yourself? If so, bravo. You're not just surviving retirement, you're well on your way to making it your best chapter yet.

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For older adults who need supervised care throughout the day, an adult day center can offer some much-needed support. These nonresidential facilities provide services such as medical assistance, social interaction and organized activities for participants, who typically have some physical or cognitive impairment. And their adult child, spouse or other caregiver can use the time to work or take a break from their caregiving responsibilities.

Generally, there are three types of adult day centers. Social day centers primarily offer opportunities for attendees to interact with one another and participate in group activities. A medical day center also provides health-focused services, such as physical or occupational therapy. Specialized centers include services such as memory care or therapeutic exercises for those with certain health conditions, such as dementia or Parkinson's disease.

To find local day centers, Tia Sauceda, executive director of the National Adult Day Services Association, suggests using NADSA's tool or this AARP-sponsored directory (click on "Community Services"). Or ask your loved one's doctor for recommendations. Once you've narrowed down a list of centers to consider, contact your state's department of aging to verify that they are licensed, and visit them in person, says William Zagorski, president of American Senior Care Centers, in Nashville. Day centers typically require a doctor's letter detailing the attendee's health condition.

Financial assistance and tax breaks

According to a 2025 study from CareScout, a site families can use to search for care providers, adult day centers charge a median daily rate of $95. Some centers have additional fees for certain services, such as a certified nursing assistant providing showers, says Sauceda.

While original Medicare generally doesn't pay for care at an adult day center, some Medicare Advantage (Part C) private insurance plans cover the expense. Medicaid, the government-provided health insurance for low-income Americans, may also cover day center care.

A specialized Medicare/Medicaid program that provides coverage for adult day center services is the Program of All-Inclusive Care for the Elderly (PACE). It aims to help older adults who need a nursing home level of care to continue living in their homes and is offered in 33 states (see the list here) and Washington, D.C.

A couple of other possible avenues for financial assistance: If your loved one has a long-term-care insurance policy, see whether care from an adult day center is included. Military veterans enrolled in the Veterans Affairs Medical Benefits Package who need clinical care are eligible for coverage at an adult day center.

Don't overlook tax breaks you may qualify for as a caregiver. If your loved one is unable to care for himself or herself and lives with you at least six months of the year, and you pay for them to attend a day center while you work or seek employment, you may be able to claim the child and dependent care tax credit.

If your employer offers a dependent care flexible savings account, through which you can set aside pretax dollars to pay for a dependent's care while you work, you may use those funds for day center care. (Note that you can't use the same expenses your FSA reimburses to claim the child and dependent care tax credit.)

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Wealth Wise is Kiplinger's advice column on navigating retirement-related dilemmas. Got a question? See below for how to send it to us.

Dear Wealth Wise: At 49, I have more retirement savings than I ever imagined. My IRA is worth almost $2 million, and I inherited my house, so there’s no mortgage. It’s worth almost $1 million, so the taxes on it are high. I also have $300K in investments outside of my IRA and a six-month emergency fund.

I’m burned out and want to take a sabbatical, which my company will not support. I would have to quit and start over. I want to spend the time traveling and seeing old friends. I have several living in Europe with whom I can stay .

I'm single, no kids, no pets. I'd use the $300K investment account and emergency fund to pay my bills while not working. I want to take a break of six months to a year. My usual expenses are about $100K a year and I make $200K, so I save a lot of my income. I'll be spending more while out of work to pay for travel and health insurance.

I’m not really worried about affording the sabbatical so much as what happens next. If I can’t get back to a big salary, do I have enough in my IRA on which to retire? Is there anything I’m missing in my sabbatical plan? — Wealthy But Weary

Dear Wealthy But Weary: When you've been working hard for more than two decades, there might come a point when you feel you need a break — and not just a long vacation, but a months-long period to recharge, pursue hobbies, and take time for yourself.

Here, we have a 49-year-old reader in great financial shape, set on taking a sabbatical, even knowing it will mean starting a job search from scratch when returning. Let's see what our experts have to say about this plan, and what tweaks they might recommend.

You can probably swing the time off, but make sure to fund it the right way

Many people in their late 40s are scrambling to catch up on retirement savings. With an IRA worth close to $2 million, our reader is in the opposite boat. Between that and their $300,000 portfolio, they're in a strong position to take an extended break, says Rob Burnette, investment adviser representative and professional tax preparer at Outlook Financial Center.

"For the short term, you certainly have sufficient funds for a one-year sabbatical. Using your non-IRA investment account for living expenses is very tax-efficient and doesn’t run afoul of early distribution penalties on your IRA," he says.

However, Burnette cautions, "I would try to keep your emergency fund intact for its purpose — emergencies."

Trevor Houston, CEO at ClearPath Wealth Strategies, agrees.

"My advice is to set up a separate savings account dedicated to covering expenses during an intentional career break. Don't start raiding retirement accounts or building debt. This fund should be separate from the emergency fund. A planned career break is not an emergency," he says.

Houston also emphasizes the importance of planning for extra costs during a workforce break.

"The biggest mistake I see people make when planning a career sabbatical is assuming they only need to replace their regular paycheck," he says. "Unfortunately, things like health insurance, taxes, inflation … can end up totaling more than people may expect."

Before moving forward with a sabbatical, Houston recommends mapping out the costs, including surprise expenses that may arise, like home repairs. If your budget can support unplanned costs, you should be in good shape.

Speaking of home repairs, Mike Dunlop, CFP and co-founder at Ignite Financial, says that as a homeowner, you have an opportunity to help fund your sabbatical without raiding your investment account too heavily.

"I'd also at least have them look at that $1 million paid-off house sitting empty with a big property tax bill while they're in Europe. Renting it out might cover a good chunk of the trip," he says.

The only catch? Rental income will boost your modified adjusted gross income (MAGI), which could bump up your premiums for marketplace healthcare.

Your sabbatical year could be a good tax-planning opportunity

Giving up your paycheck for a year might be daunting, but it could serve as an opportunity to make a smart long-term tax-planning decision.

"While you have a large IRA, that is also a tax bomb that will go off when you do draw funds from it in retirement. For full tax diversity, you need to add a Roth IRA to your mix so that you have everything covered," Burnette explains.

"During the year on sabbatical," he continues, "you could look at doing some Roth conversions on your IRA while you aren’t drawing a large salary. The Roth conversion would certainly improve the status of making your $2 million in retirement assets go further when you finally retire."

Dunlop agrees that a Roth conversion could be a smart move during a planned sabbatical. But he also cautions that a conversion could lead to higher health insurance costs.

"I'd want them watching the health insurance piece, because ACA coverage can be cheap when income's low," he says. "But a Roth conversion bumps that income up and can shrink the subsidy, so those two levers work against each other."

Make sure you have a re-entry strategy

If you take a sabbatical at 49 and return to the workforce at 50, you might not be nearly ready to retire. Houston says it's important to plan for a re-entry that could take more time than anticipated.

"What happens if it takes longer than you expect, and your sabbatical savings are gone? What's happening in your industry? How might you need to adjust your career plans?" Houston says.

Dunlop says that at your age, there's some risk of age discrimination.

"The over-50 job market is real, and I won't pretend otherwise," he says.

However, Dunlop insists you have one thing going for you: You don't necessarily need to replace your $200,000 salary if you only spend $100,000 a year and have a robust IRA to fall back on. Trying to find a job is less scary when you can accept a lower number.

"The next job really only has to cover what they actually spend," Dunlop insists. "When you don't need the paycheck, you can usually interview better and hold out for something you actually want."

Enjoy your time off

There you have it. Our three experts agree that you're in a great position to take a much-deserved sabbatical. Even if you get a lower-paying job upon your return, you've built up a large enough IRA balance that you can let that money sit and grow until retirement age and still have more than enough.

If you want to approach that career break with even more confidence, it could pay to consult a professional.

"This would be a great conversation to have with a financial planner will look at all aspects of your financial situation," Burnette says.

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our writers and experts, in this advice column, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial adviser regarding any questions you may have in relation to the matters discussed in this article.

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Every retirement plan is built around the same fear: Outliving your money. The industry has developed sophisticated tools to address it.

• Monte Carlo simulations model the probability that a portfolio will survive 30 years of withdrawals
• Safe withdrawal rates are debated to the decimal point
• Longevity risk is taken seriously

The research has identified a different risk, one that is statistically more common, demonstrably more devastating and absent from virtually every financial plan in circulation.

The risk is outliving your mind.

A 2025 systematic review in Health Psychology Review confirmed what longitudinal research has been building toward for a decade: Retirement is associated with measurable cognitive decline, not only because people age but because structured cognitive demand disappears.

Researchers gave the mechanism a name: The mental retirement hypothesis. When the brain is no longer required to perform at the level a career demanded, it follows the body's example and withdraws from challenge. The decline is not inevitable. It is, however, predictable — and far more preventable.

The professor

Margaret spent 41 years as a professor of developmental psychology at a major research university. She published extensively, advised doctoral students, taught graduate seminars and worked at the edge of her discipline for three decades. She retired at 68 with a comfortable pension and her health intact. Within 16 months, she quietly realized that something she had always taken for granted was beginning to slip.

She knew the research. She had assigned papers on neuroplasticity and cognitive aging to her students. She understood, at a scholarly level, exactly what was happening. She simply had not planned for it.

What work does for your brain

The workplace offers something most people never consciously notice until it is gone: A daily cognitive stimulus framework they did not have to design.

• Novel problems arrived uninvited
• Deadlines imposed urgency
• Colleagues challenged assumptions
• Students asked questions with no clean answers
• The environment kept the brain engaged

Margaret's career was among the most cognitively demanding. Her days required reading new research, evaluating evidence, constructing arguments, defending conclusions under peer scrutiny and translating complex ideas for audiences that expected precision. None of it was easy. All of it was, neurologically, exactly what the brain requires to sustain function.

This is where the research presents an inconvenient finding for high achievers: The steeper the cognitive demands of the career, the steeper the potential decline when those demands end. Retirees from high-complexity occupations, such as physicians, executives, lawyers and academics, face the greatest gap between career-level cognitive engagement and the engagement that retirement, by default, provides.

The person who built the most sophisticated mind is, in the absence of deliberate design, at the greatest risk of watching it diminish.

Margaret's retirement did not end her paycheck. It removed the daily stimulus her brain had organized itself around for four decades. The seminars ended. The doctoral students graduated. The editorial reviews stopped arriving. The conferences, the department meetings, the weekly urgency of a discipline that never stopped moving — all of it faded within a single academic year.

What replaced it was quiet and comfortable. And, by the standard the research now applies, cognitively insufficient.

The antidote isn't what you think

When people learn that cognitive engagement protects the aging brain, the response is predictable: Crossword puzzles, brain-training apps and sudoku. These feel like the right answer. They are not wrong, exactly. They are simply not enough.

The research draws a distinction most people miss. Practicing a skill you already possess is maintenance. The brain grows through novelty, not repetition. A crossword puzzle that takes 45 minutes is not the same as a problem with no known solution that requires you to build new mental frameworks to approach it. The first sustains what is already there. The second creates something new.

Researchers at Binghamton University have identified social engagement as, in their words, "simply the single most powerful factor for cognitive performance in old age," ranking it above brain games, supplements, and even formal education. The engagement they describe is social complexity: Relationships that require reading another person, managing disagreement, sustaining a connection through difficulty and being genuinely accountable to another person's expectations.

The research consistently identifies three protective conditions:

• Novel learning, meaning acquiring skills and knowledge you do not already possess
• Social engagement with real complexity and mutual accountability
• Purposeful challenge, meaning goals that require sustained effort and carry real consequences

Margaret's daily crossword does not meet the level of challenge her brain requires. A structured role mentoring junior faculty two mornings a week meets all three. She is learning how her discipline has evolved since she last taught it. She is accountable to people who need her. The outcomes matter. The cognitive demand is functional, not decorative.

The distinction is not about difficulty. It is about demand and whether that demand is connected to something with genuine stakes.

Designing the cognitive portfolio

The financial planning vocabulary that dominates retirement conversations offers, perhaps unintentionally, a useful frame.

A well-managed financial portfolio is diversified across asset classes, actively monitored and adjusted as conditions change. Left unmanaged, it is exposed to risks the owner has not accounted for.

The same logic applies to what might be called the cognitive portfolio: The collection of activities, relationships and challenges that keep the brain operating at a level commensurate with its capacity.

Most retirees do not deliberately manage their cognitive portfolio. They leave it to chance — and chance, without intention, follows the path of least resistance.

Three non-negotiables belong in a well-designed cognitive portfolio:

Novelty. Learning something genuinely new, not merely practicing what is already mastered. A retired professor of developmental psychology who is learning a new language, building furniture or navigating a community board where she holds no authority qualifies. A retired professor reviewing papers in her own specialty, while valuable, does not yield the same neurological return.

Social complexity. Relationships with real stakes, mutual accountability and the productive friction that keeps the mind alert.

Purposeful challenges. Goals that require sustained cognitive effort and carry consequences the retiree genuinely cares about.

For Margaret, this meant three commitments in her second year of retirement:

She joined a community mediation program, a field where her expertise did not transfer and her credentials carried no weight

She accepted an invitation to co-teach a public seminar with a colleague 30 years her junior, a role that required her to learn as much as she taught

And she began meeting weekly with two graduate students whose dissertation committees she had agreed to serve on as an external reader

None of it re-created her career. All of it replicated the conditions her career had provided: Novel inputs, social accountability and a goal that demanded her best thinking.

Intellectual stimulation is one of the five pillars of a fulfilling retirement. Among the five, it is the one most often treated as supplementary. Research on cognitive decline suggests it is anything but. It is load-bearing.

A different kind of risk management

Margaret knew the theory. She had spent four decades teaching it. The gap in her retirement plan was not ignorance; it was application. She understood, in the abstract, that the brain requires challenge to sustain function. She had simply not built that requirement into the concrete architecture of her daily life.

That gap is not unique to academics. It is the structural condition of traditional retirement applied to a brain that was never designed to stop working.

The paradox the research holds without resolving, the very qualities that made a career exceptional, such as the appetite for intellectual challenge, the drive toward mastery and the need for work that matters, are the same qualities that make retirement cognitively risky when they are not deliberately redirected. The high achiever's greatest professional asset becomes, without intentional design, the high achiever's greatest retirement vulnerability.

Financial planning has developed precise tools for managing money over a 30-year retirement. It has not yet developed equivalent tools for managing the mind over the same span. Both are depletable. Both respond to how they are managed. Both require a strategy.

Every retirement plan should answer two questions. The first is familiar: Will the money last?

The second has been absent from the planning conversation for too long.

Will the mind?

To learn more about designing a fulfilling retirement, pick up my new book, Your Encore Years: The Psychology of Retirement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The allure of retiring to Florida can be strong. Palm trees, sandy beaches, warm weather and zero income tax drive retirees in droves.

But for some, Florida isn't what they expected. Sure, they save money on income taxes, but the hefty homeowners' association fees and skyrocketing insurance premiums more than cancel that out. That doesn't include the hurricanes, persistent humidity, heavy traffic and overcrowding.

These retirees want what Florida promised, but on a more manageable scale. They can get that from what is known as "half-back" states, which offer tax-friendly policies, mild weather and a lower cost of living.

For Northeasterners, they sit perfectly between Florida and their old hometowns, keeping them within an easy day's drive of the grandkids. They might not check off every box that Florida offers, but what they lack, they make up for in their own unique charm and appeal.

If you're ready to say goodbye to Florida's heat and high HOA fees, here are four half-back states that might be right for you.

Why Georgia is a top pick for ex-Florida retirees

Georgia might tax your income, but it offers other advantages that make it appealing to disillusioned Florida residents, including no tax on Social Security benefits, no estate or inheritance tax and low property taxes.

There's also the Georgia homestead exemption, which lowers property taxes for homeowners through the reduction of some county and school taxes. It is offered at a set amount by the state of Georgia, but some counties offer higher amounts. People age 65 and older might be granted an additional exemption.

Beyond taxes, Georgia offers warm weather without the extremes of Florida. Winters are mild, with temperatures dropping to around 60 degrees. Summers are hot, with temperatures reaching into the 90s, but not as humid as Florida.

Homes are more affordable in the Peach State. A two-bedroom house costs about $335,358, while a one-bedroom rental is around $1,440 per month. That compares with $378,126 and $1,693, respectively, in Florida.

Georgia also gives retirees something that Florida can't: geographic diversity. Retirees can live near the historic streets of Savannah or in the peaceful Blue Ridge Mountains. In Georgia, you get it all: mountains, the coast and small, charming towns dotted all over the state.

North Carolina: Milder seasons without the humidity

You won't get the year-round summers that you do in Florida, but you also don't have to worry about oppressive humidity in the Tar Heel state. North Carolina offers retirees a four-season climate, but milder. Temperatures hover around 50 degrees in the winter and 90 degrees in the summer.

While North Carolina taxes your income, it exempts Social Security benefits and doesn't have an estate or inheritance tax. You can purchase a two-bedroom home for around $340,430 in North Carolina, which is cheaper than in Florida. Prefer to rent? A one-bedroom apartment is about $1,362 per month in the state.

Just as in Georgia, you get the best of both worlds in North Carolina — the Blue Ridge Mountains, which offer stunning views and great hiking trails, and the Atlantic coast. There's also city life, thanks to Charlotte, home of the Carolina Panthers professional football team and the Charlotte Hornets, its professional basketball team. It's even closer than Florida if you're visiting friends and family in the Northeast.

South Carolina: A taste of Florida closer to home

South Carolina gives you a taste of Florida with miles of sandy beaches, southern charm, plus a slice of the Blue Ridge Mountains. Home to historic coastal cities and pristine golf courses, South Carolina is a popular destination for half-back retirees because of the mild weather and low cost of living. Temperatures during the winter are around 60 degrees; In the summer, they hover around 90 degrees.

South Carolina taxes your income, but you don't pay taxes on your Social Security. You can also deduct up to $15,000 of your individual income or $30,000 for couples filing jointly. Your heirs won't have to worry about paying an inheritance tax. The average cost of a two-bedroom home is $309,323, while a one-bedroom apartment goes for $1,412 per month.

Tennessee: No income tax and mountain living beyond the coast

You won't find sandy beaches in Tennessee, but you will find a mix of rolling hills, mountain peaks and the birthplace of country music.

Home to Dolly Parton's theme park, Dollywood, Tennessee offers retirees a mild climate, a low cost of living and quick access to friends and family in the Northeast. In Tennessee, retirees can choose to live in the mountains of Gatlinburg or Pigeon Forge, or at the center of world-class music culture in the rolling hills of Nashville.

As with Florida, Tennessee doesn't have a state income tax, nor does it tax Social Security or withdrawals from retirement accounts, such as 401(k)s and IRAs. There is no inheritance tax, and property taxes are low. You can get a two-bedroom home for an average of $338,769. Monthly rent for a one-bedroom apartment is $1,365.

Is a half-back move right for your retirement?

Florida might have been your lifelong dream for retirement, but don't beat yourself up if it didn't work out. You aren't alone. The good news is there are plenty of half-back states you can call home. Some offer you the sandy beaches of Florida, warm summer months and a vibrant coastal lifestyle. Others offer geographic diversity, a lower cost of living and proximity to family and friends.

But before you move to one of these half-back states, do your homework, crunch the numbers and test drive before making it permanent.

Methodology: To select the best half-back states for retirees, we looked at the proximity to Florida, the average price of a two-bedroom home based on Zillow, and the average rental price for a one-bedroom apartment, according to Apartments.com. We also looked at the average temperatures in the winter and summer months, activities for retirees and the tax treatment in the state.

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For some people, the appeal of retiring abroad lies in the ability to live well for less than it would cost in the U.S. Others seek more affordable healthcare or a less divisive political climate. Still others, such as Karen Fifer Ferry, 68, and her husband, John, 74, are lured by love — not for each other (though the couple has that in abundance), but rather for the place they now call home.

For the Ferrys, that means Green Turtle Cay, a tiny island in the Bahamas boasting pristine beaches, crystal blue waters, picturesque clapboard houses and lush coral gardens.

The couple started vacationing there when their three children, now in their mid-thirties, were small. They kept going back, increasingly enamored of the island’s physical beauty and its warm, welcoming community of around 500 people — a place where, Cheers-style, everybody knows your name.

The couple bought a cottage there in 2012, gave up their U.S. home in Providence in 2014 and worked largely remotely. They decided to retire in the Bahamas permanently after Karen left her job as a consultant to healthcare companies in 2018 and John, a pediatrician and executive recruiter for the healthcare industry, followed suit a year later.

Since they already owned property in the country, the path to becoming permanent residents was straightforward, requiring only additional references to attest to their character, documentation of sufficient financial assets to show they wouldn’t become a burden to the government, and an application fee.

Since then, the Ferrys’ overseas retirement has had plenty of ups and a few downs. In 2019, Hurricane Dorian, a Category 5 storm, destroyed the couple’s island home; during the two years it took to rebuild, the Ferrys lived in a 17-foot trailer on their property.

Now they have a 1,400-square-foot cottage more than double the size of their old one on the narrow tip of the island, surrounded by water on three sides. Friends and family are constant visitors, and their days are full with dips in the ocean, long walks on the beach, volunteer work and plenty of porch time admiring the view. Their biggest expense is regular travel back to the States to visit their kids and four grandchildren.

It is an idyllic life, the couple say. "We were never really choosing to leave the United States," Karen says. "We just fell in love with this place."

A growing trend of retiring abroad

Like the Ferrys, more and more retirees are pursuing their version of a dream retirement in places that aren’t in the U.S. Although there are no hard data on their numbers, the trend is clear in the growing ranks of retired workers receiving Social Security benefits overseas: up 22% over the past 10 years.

Meanwhile, according to a 2025 Harris poll, more than one-third of Gen Xers and one-fourth of baby boomers have considered moving out of the U.S. Their top motivation was a lower cost of living abroad, followed by political dissatisfaction and a desire for a higher quality of life.

"It’s not that people who are considering retiring abroad don’t have the money to retire well in the United States, but more that they like the idea of being able to live better, to have an adventure and see their nest egg go further," says Jennifer Stevens, executive editor of International Living, which guides people to the best places to live and retire overseas.

Also fueling the trend: Many countries have made the route to retiring abroad easier in recent years, shifting from processes that required a large initial investment from foreigners looking to establish residency to pathways in which you can demonstrate that you have a certain minimum amount of guaranteed passive income — a stipulation often satisfied, depending on the country, by Social Security benefits alone.

Still, deciding whether to actually forge ahead and, if so, picking the right place and establishing a happy life there can be daunting.

Moving far from family and friends may feel lonely, especially if it’s to a place where you don’t speak the language. You may be hit with unanticipated costs or other snafus, and taxes and estate planning can be complicated.

For those who can make it work, though, retiring abroad really can be a dream come true, offering cultural adventure and a higher standard of living at a lower cost. Intrigued? Here’s what you need to know and, if you go, how to make the move a success.

Start with a wish list

Before Cynthia and Edd Staton made the leap to retire in a foreign country, they wrote down everything they hoped their ideal location would offer.

The year was 2010, and the couple was a casualty of the Great Recession. Both had been high earners living and working in Las Vegas — Edd in automotive services, Cynthia in luxury real estate. —and when those industries went bust, they lost their jobs and couldn’t find other work that paid enough to cover their bills. They were burning through savings and needed a big lifestyle change.

Retiring abroad felt like a viable Plan B. "We wanted to feel like we were moving toward something instead of moving away from something," says Cynthia, 73. "For the first time in our lives, we sat down and really talked about what we wanted going forward."

The place they chose, the midsize city of Cuenca in Ecuador, checked all the boxes on their wish list. The cost of living was low, and the climate was mild.

It was close enough to the eastern coast of the U.S. that they could easily travel back to see their adult children, and it was in the same time zone, which made calling and video chatting easy. The healthcare system was decent, and the amenities were modern.

Sixteen years later, the Statons are still in Cuenca, living in a penthouse apartment with a large terrace overlooking a river. They eat out when they want, enjoy gym and yoga memberships and other creature comforts, and are planning a monthlong vacation in Italy this fall. And it’s all affordable on their monthly Social Security benefits alone.

"Most months, we have enough money left to put up to 20% in savings," says Edd, 77, who along with Cynthia now offers advice to other people interested in retiring abroad via a blog, articles, books and courses on their website.

Figuring out where in the world you might like to retire starts with the kind of self-reflection the Statons engaged in, experts say. "Ask yourself, if money were no object and you could define the retirement you want, what would your days look like, what are your non-negotiables, and what would you love to have but may not be essential?" Stevens says.

Besides obvious considerations such as your budget and healthcare needs, think about whether you’d feel most comfortable someplace with a large expat community, whether you’re open to learning another language, and what you want your surroundings to be like.

Maybe you prefer an area rich with history or to live near, say, museums and concert venues, great markets if you love to cook, or plenty of golf courses if you like to play.

Then, armed with answers, consult some lists of best places to retire overseas, such as those published by International Living, Global Citizen Solutions, Live and Invest Overseas and other organizations. You can use ChatGPT, Gemini or other artificial intelligence tools to search, too, plugging in your key factors to see what pops up.

The goal is to create a personalized shortlist of countries that meet your criteria and are worthy of further investigation. Says Stevens, "Dream big first, and then let the technicalities eliminate some of the places you might be thinking about."

Go for a trial run

Once you’ve narrowed the field, take a scouting trip — or, better yet, a few — to check out places that interest you. Try living like a local while you’re there. Rent an Airbnb instead of staying at a hotel. Shop at the grocery store and cook, rather than always eating at restaurants. Hang out with expats at the local pub to hear what they say about the place.

"People often make the mistake of thinking they want to retire somewhere they love to go on vacation," says Edd Staton. "The problem is that you go on vacation to get away from your life, not for it to become your life."

Be sure to visit in the off-season. "If you go to Spain or Italy in July, the weather is great, there are festivals and great food, and everyone’s having fun," says Alex Ingrim, CEO of Liberty Atlantic Advisors, which specializes in financial advice for Americans living abroad.

"Seeing what a place is like in January, when three-quarters of the restaurants are shut down, is the real test. You need to make sure it’s the right place for you year-round."

What you want to learn from this exercise: "You can get to a place and your heart just says no, even though logically, on paper, it should be the perfect place for you," says Stevens. "Or you visit a place that you thought you should eliminate, but you go just in case and think, Well, this is fabulous. This is the one."

Understand the rules of entry

Many foreign governments make it surprisingly easy and affordable for Americans to retire in their country, shifting in recent years from requiring large lump-sum investments to establish residency to simply asking for documentation that you have a certain minimum amount of guaranteed passive income from sources such as Social Security and pensions.

In many places, those minimums are quite modest, often easily covered by Social Security benefits alone. Global Citizen Solutions, an advisory firm for people planning to move overseas, found that 61% of the 44 countries it analyzed in Europe, the Americas, Africa and Asia require a minimum monthly income of 2,000 euros or less (around $2,325, at recent exchange rates), including Portugal, Panama and France.

Typically the visas are good for a year, then must be renewed annually. But nearly half offer longer residencies (Portugal’s visa is good for two years, as is Uruguay’s), and a few countries, including Panama, offer permanent residency from the outset.

Other requirements typically include proof that you have health insurance and a place to stay once you enter the country.

Once you start the process, it commonly takes three to four months for a visa to be approved, but you should give yourself six months of leeway, said Adalberto Pucca, head of global mobility solutions at Global Citizen Solutions.

"It’s important to know the rules about obtaining residency, but the ease of the visa process shouldn’t be a high-ranking factor in your decision about where to move," Pucca says. "Go where you’ll be happiest."

Expect to live larger for less

No matter where you end up in the world, your living costs will likely be lower than what you’d pay to lead a similar lifestyle in the U.S., experts say. That’s typically true, they say, even in highly developed countries and with today’s weak dollar against the euro and other currencies.

How much lower, however, will differ dramatically depending on which country you choose and what town, city or region you settle in.

Retiring to Central or Latin America, for instance, will be substantially less expensive than retiring in Europe; within Europe, Greece will be easier on your budget than France, and within France, living in the countryside will be much cheaper than retiring in Paris.

You can compare living costs in various cities and countries at the website Numbeo. International Living also publishes typical budgets for retirees in the 22 countries it ranks. Your costs, though, may be very different from the "typical" budgets seen on best-places lists, depending on your preferred lifestyle.

"Maybe you will rent a house instead of an apartment. Maybe you like to eat out more often or go to higher-end restaurants. Maybe you prefer to take Ubers rather than use public transportation," says Pucca.

"It’s important to personalize your cost-of-living estimates, based on your own research and the prices you pay when you visit."

Line up healthcare in advance

Nearly four out of 10 Americans considering a move abroad cite the availability of better, more affordable healthcare as a top reason, the Harris poll found. The good news, experts say, is that healthcare is indeed less expensive in most other places in the world, though by how much differs sharply from country to country, as well as within countries among different cities, towns and regions — just as in the U.S.

The same is true for the quality of care. You’ll generally have access to first-rate treatment in most countries in Europe, with France, Portugal and Spain topping the list for best healthcare based on a combination of quality, access and affordability in International Living’s rankings. Panama also wins high marks, as does Costa Rica.

Though most countries have some form of government-subsidized health care, it can take time — typically from three months to two years — for newcomers to qualify.

So you’ll need private coverage from a national or international insurer to bridge the gap. International carriers include Cigna Global, Blue Cross Blue Shield Global Solutions and International Medical Group.

Even after qualifying for the public health system, many expat retirees retain private coverage for access to higher-quality medical facilities and shorter wait times.

One strategy to keep costs down is to opt for catastrophic coverage only and pay out of pocket for routine care, since the costs are typically low in many countries, says Hunter Schultz, a healthcare consultant for Expatsi, a company that helps Americans relocate abroad, and author of Expat Health Guide.

He notes, for example, that in Panama, where he lives as a U.S. expat, people pay about $30 for a primary care visit, and he recently paid $110 for an ultrasound of his shoulder — before the 20% senior discount he gets on medical expenses.

Schultz likens it to how Americans use auto insurance. "You wouldn’t put in a claim with your insurer for an oil change or new spark plugs. It’s just the big expenses, and that’s the way people often use health insurance in other countries," he says.

One additional expense you shouldn’t forgo: retaining Medicare coverage.

While your benefits won’t cover care in the country you move to, you’ll need them to help pay for any treatment you receive when you’re back in the U.S. for visits or if you need to seek treatment from a specialist here.

You’ll also need Medicare if you eventually come back to the States to live, as many retired expats end up doing. While you can re-enroll in Medicare after a lapse in coverage, you’ll be hit with a stiff lifetime penalty for doing so: 10% of the standard Part B premium for every 12 months when you could have had Part B but didn’t.

Manage taxes with care

International wealth managers routinely use two words to describe the tax situation that Americans who retire abroad face: It’s complicated.

That’s true no matter where in the world you choose to retire. The reason: The U.S. is one of only two countries in the world (Eritrea, in Africa, is the other) that tax people based on citizenship, not residency. "Uncle Sam is your most loyal travel companion," says Peter Sengelmann, director of Creative Planning International, an international wealth management firm. "He will follow you wherever you go."

In practice, that means you have to file tax returns and report income and follow the tax rules in both the U.S. and your place of residence abroad, although you won’t necessarily owe taxes in both countries.

The U.S. has treaties with more than 60 countries to prevent the same income from being taxed twice — or to at least lessen the sting.

Critically, the rules about what income is taxed and at what rate differ from country to country, with some places more friendly to retirees than others. Most countries in Europe, for instance, tax all of your income no matter where you earned it.

Others, including several in Latin America and Southeast Asia, only tax income earned in that country. Some, such as Costa Rica, Panama and Uruguay, typically exempt foreign pensions and annuities entirely, while others, such as Greece and some places in Italy, tax them at a low flat rate. Some countries treat distributions from Roth accounts (which are funded with post-tax money but provide tax-free withdrawals in the U.S.) as taxable income.

Some have much higher tax rates than in the U.S., and the higher rates start at lower income levels. In Italy, for instance, the top rate is 43% and kicks in at 50,000 euros (around $58,000 at recent exchange rates).

"It makes your head spin," says Sengelmann. That’s why experts urge U.S. retirees living abroad to work with a pro who is well versed in international tax law or, at a minimum, how U.S. rules work in tandem with those of the country you want to live in.

The nonprofit American Citizens Abroad has directories of international tax preparation and financial services providers; you can also tap expat networks on Facebook or other social media platforms for recommendations.

A pro can help you take steps proactively to limit negative tax consequences. For instance, if you’re moving to a country with a high tax rate, you might want to take some distributions from tax-advantaged retirement accounts before you leave so you’ll pay taxes on that income at lower U.S. rates.

Or you might avoid doing a Roth conversion if you’re thinking about moving to a country that taxes withdrawals from those accounts.

"Don’t let the tax tail wag the dog," Sengelmann says. "Go where you think you’ll be happy, and an adviser can help you figure out the rest."

Get your expat finances in order

As with taxes, managing the rest of your financial life when you retire abroad takes a lot more thought and at least a little bit more maneuvering than if you were dealing with the rules of one country only.

For instance, you’ll probably want to maintain bank accounts in the U.S. and in your country of residence to make it easier to pay for things in both places and maintain access to spending money that isn’t subject to currency fluctuations and conversion fees.

That’s especially true if you’ll be traveling back and forth to visit or access healthcare in the U.S. or if there’s a chance you might move back one day. (Hint: there’s always a chance.)

That means you’ll need to maintain a U.S. address, which you must also have to keep Medicare coverage. You can use a family member’s address or set up a virtual mailbox, which provides a physical address to receive mail.

Then the service scans the contents digitally and sends them to you or forwards packages. Providers include iPostal1 (plans start at $9.99 a month) and Virtual Post Mail ($20 a month).

If you’re collecting Social Security, you can continue to receive benefits through direct deposit at your U.S. bank or have benefits sent to your bank overseas. Either way, you’ll need to inform Social Security of your move, as well as fill out a questionnaire the agency will send to you every two years to confirm your address and status. The same U.S. tax rules apply.

The thorniest issue: estate planning. Some countries levy an inheritance tax, for instance, and exemptions are often much lower than the federal estate tax exemption in the U.S. Then, too, many countries, including most in Europe and some in Latin America and the Caribbean, follow so-called forced heirship rules governing the disposition of assets.

"You don’t necessarily get to choose who inherits what; it’s dictated by law and cannot be overwritten by a will," says Ingrim at Liberty Atlantic. "There are strategies you can use to bypass forced heirship laws, but it takes advance planning."

Even jointly held assets may be vulnerable to different rules of succession, and often the assets won’t automatically pass to a surviving spouse but rather will be tied up for a while — years, in some cases — as an estate goes through probate.

For that reason, Ingrim recommends that couples living abroad split some assets to hold in individual accounts so each spouse is assured access to funds as needed.

Find — and keep — your people

A study published last year in the journal Psychology and Aging found that people who retire abroad risk feeling lonelier than older retirees who stay in their native country.

Based on a survey of about 5,000 Dutch people aged 66 to 90 living in 40 countries, the researchers found that the expats reported higher levels of social isolation and, among those who lost touch with family and friends back home, greater emotional loneliness as well.

After 16 years living in Ecuador and seeing many expat retirees come and go, it’s a phenomenon the Statons are familiar with. "It can be hard to feel like you’re an outsider and always will be," says Edd. "Some people get tired of feeling they don’t fit in."

One workaround for the social isolation that many expat retirees experience: Move with or near people you know, so you have a small established community from the outset. And, experts recommend, aim to live like a local, not a tourist, interacting with residents and immersing yourself in the language, customs and culture of your new home.

That’s the approach that Marion Sharp and Noel Blyler took when they moved to Loches, in France’s Loire Valley, last year.

Sharp, 67, who had worked in nonprofit fund-raising, and Blyler, 66, a former high school college counselor, had visited close friends who had a second home in the area several times over the years. Sharp and Blyler loved it and had talked about maybe buying a second home themselves or even retiring there one day.

When the friends invited the couple to share their house and all retire there together, Sharp and Blyler took the leap.

"This is a dream more than 50 years in the making," says Sharp, who has loved France since she first traveled there when she was 16.

Obtaining a visa was easy, Blyler says, requiring only that they show they had a place to live, health insurance and a minimum level of guaranteed income, which was covered by their Social Security benefits.

Harder but fun, they say, has been learning to speak conversational French. They recently purchased a place of their own near their friends, and they are deeply engaged with the history, architecture, art and beauty of their adopted home.

"I think of it as un coin de paradis, a corner of paradise," Blyler says. Sharp, who says that friends from the U.S. are frequent visitors, adds, "There’s a different attitude toward enjoying life here. Experiencing another culture is part of the adventure."

Be ready for hassles and hiccups

Adjusting to that different culture is frequently cited by experts and expats alike as the most challenging part of retiring overseas. Learning a new language and adapting to a different pace and norms can be tough, but it’s often smaller irritants that stick out to people who have made the move.

Hunter Schultz recalls his chagrin when he first moved to Panama and couldn’t find his beloved Pepperidge Farm cookies on grocery shelves.

Karen Fifer Ferry says she often brings back cooking ingredients from her visits to the U.S. because they can’t be found in Bahamian stores, and she admits the laid-back pace can be frustrating — it took twice as long to rebuild their home after Hurricane Dorian as the initial estimate.

Ingrim says American clients are often surprised to find that many European homes don’t have dishwashers and that the furniture they shipped from their 2,500-square-foot house in the U.S. doesn’t fit in the 1,000-square-foot apartment they live in now.

Stevens of International Living recommends tapping into the expat community in your new home via social media and in-person gatherings to help solve common problems. "They can make your landing so much softer," she says. "They’ve already figured out a plumber that’s good, which vet speaks English and how you pay your utility bill."

Perhaps the most helpful thing you can do, says Stevens, is adjust your own attitude.

"When you retire abroad, there are inevitably going to be difficulties. The bureaucracy will be hard to navigate, and there will be confusion, especially if you don’t speak the language," she says. "To enjoy this new life, it really does help to think of it as a grand adventure, that it will be fun to try new foods, have new experiences and learn a new culture."

It has also helped, Ferry says, to remember that the decision to retire abroad is reversible. Circumstances change and so do people.

The Statons agree. "When people ask us if we’ll live in Ecuador forever, we say we have no idea how long forever is," says Cynthia. "What’s important is not to let worry over ‘forever’ stop you from making a move that could be perfect for you right now."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Mark Twain said, "Never put off till tomorrow what may be done day after tomorrow just as well." Coming from a long line of procrastinators, that sentiment rings true. It was also my approach to retirement. I put off the decision again and again.

Until now.

After spending much of my career writing about retirement, I finally decided it was time to start living it. I assumed I was prepared. I had spent years researching the topic, interviewing experts and helping others think through one of life's biggest transitions.

Then I turned in my retirement notice.

What I expected to feel was relief. What I felt seemed more like loss. The experience hit me much harder than I anticipated. In fact, I went through a brief period of sadness that caught me completely off guard.

Retirement looked very different in practice than it did in theory. For the first time, I realized that preparing financially and preparing emotionally for retirement are not the same.

When your identity changes

You can say labels don't matter, but the truth is they do. For most of my adult life, I've been an employee, a writer, a colleague and a contributor. Soon, my title will change to retiree.

Am I old enough? Yes. Have I saved enough? I think so. Am I ready to become the smiling older man walking on a sandy beach? I know too much about retirement marketing to be on the cover of that brochure.

What surprised me most was how much of my identity was connected to my work.

My office sits on the corner of a busy hallway. I only have to turn toward the door to see who is walking by. Throughout the day, colleagues stop in to share stories, kick around ideas, celebrate successes or talk through challenges. There have been plenty of laughs, more than a few crises averted and countless conversations I'll miss.

Retirement means stepping away from more than a job. It means stepping away from a community and a daily rhythm that has been part of my life for decades. Recognizing the stages of change can help make sense of the transition.

In his Bridges Transition Model, researcher William Bridges describes three transitions people go through during major life changes:

• It starts with an ending
• Then comes the neutral zone, the period between an old identity and a new one
• Finally, there is a new beginning, ideally bringing with it renewed energy and optimism for the next chapter

Replacing more than a paycheck

I'll miss getting a paycheck.

I've received one every other Friday for decades. Like an old friend, that ritual is comforting and easy to take for granted.

What surprised me is that a paycheck isn't just income. It's reassurance. Every other Friday, money quietly appears in my account and confirms that everything is working the way it's supposed to.

Retirement asks you to replace not only the income but some of that confidence as well. That's one reason many retirees build strategies around reliable sources of income.

Depending on individual circumstances, annuity products can help create a stream of guaranteed^* income that works alongside other retirement assets and withdrawals. A financial professional can help you develop a customized strategy.

Learning Medicare's lessons

I'll be on Medicare.

After years of relying on employer-sponsored health insurance, I found researching Medicare to be a maze of parts, enrollment periods, deadlines and rules. A qualified insurance agent helped me navigate the process and reminded me that Medicare is anything but free.

Fidelity estimates the average 65-year-old couple will spend roughly $12,850 on healthcare during their first year of retirement. And that doesn't include long-term care expenses.

The lesson is simple: Build room in your retirement budget for healthcare costs.

Building a new community

According to the Holmes-Rahe Life Stress Inventory, retirement ranks ninth — tied with marital reconciliation — among the 43 most stressful life events measured by the scale.

In my case, retirement is accompanied by a move, which is also on the list. While I'll be closer to extended family, I'll also be leaving behind a network of workplace relationships and social connections.

I'll be looking for some new friends, and the best remedy is to get busy. Volunteering and community involvement are how many retirees build new relationships. Ken Dychtwald, founder and CEO of Age Wave, recently suggested society could benefit from an Elder Corps — something like the Peace Corps for retirees.

My own plans include joining Toastmasters, participating in a book club, spending time at a health club, reconnecting with my college alumni association and enjoying my son-in-law's boat.

I should probably let him know about that last one.

The point is to actively seek connection and avoid isolation and loneliness.

I'll get Monday mornings off

For years, the iconic ticking stopwatch from 60 Minutes triggered my Sunday scaries, shifting my mindset from weekend relaxation to work responsibilities. While I look forward to no longer caring whether it's Sunday or Monday, maintaining a schedule can provide structure and purpose.

My father, who spent nearly 30 years in retirement, opened an antique shop after a successful engineering career. He didn't sell much, but he had a place to go every day and a community of regulars and friends.

Turning a passion into a purpose can provide a reason to get up each morning while you're still finding your footing.

Appreciating the gift

Advances in medicine, healthcare and technology are steadily increasing life expectancy. Longer lives are not simply adding years to the end of life — they are reshaping how people think about retirement and the opportunities it presents.

What I've come to realize is that retirement isn't a single event, it's a transition.

I've spent years focused on the financial side of leaving the workforce. What surprised me was how much emotional preparation was required as well.

From the moment people start saying congratulations to the realization that you're now on your own path, retirement becomes a new life story.

Retirement marks an important new chapter of my life. The trick is to turn fear into curiosity and anxiety into possibility.

Like most meaningful transitions, it isn't something you fully understand until you start experiencing it.

* Guarantees are backed by the claims-paying ability of the issuing insurance company.

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• The 'Ted Lasso' Effect: A Positive Outlook Really Can Strengthen Your Retirement Plan
• Combating Loneliness in Retirement: Why Strengthening Your Connections Could Lengthen Your Life
• How to Keep Your Work Friends After You Retire
• How a Side Hustle Can Jumpstart Your Retirement Social Life

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you saved $2.5 million in your traditional 401(k) or IRA, you're probably wondering how much you'll need to withdraw due to required minimum distributions (RMDs) and the impact they'll have on your retirement benefits.

They're required of everyone with a traditional 401(k) and IRA once they turn 73. It's a way for the Internal Revenue Service to get paid for all the tax-free contributions you made to your retirement account during your working years.

But those RMDs can have ramifications if they're large enough. They can push you into a higher income bracket, increase your Medicare premiums or force you to pay taxes on a portion of your Social Security benefits. You also must withdraw money that you might not need.

If you take out too much, it means less money to spend later or leave to your heirs. Take out too little, and you could be on the hook for as much as 25% in penalties. If that sounds like a lot, consider that penalties were as high as 50% before the passage of Secure 2.0. A penalty drops to 10% if you correct your RMD mistake within two years.

Here's a look at what RMDs you'll owe from ages 73 to 85 if you have $2.5 million saved. (We also looked at what you'll owe in RMDs when you have $1 million and $5 million saved.)