What might your retirement look like – the three stages of retirement

When we are creating our Retirement Savings Analysis for our clients these days, we calculate how long your money is going to last based on the assumptions of saving and spending that you establish with us.

As you are likely to live longer than you might think, we make sure that this information shows you the impact of you living to 95 or even 100 years old.

It used to be that you could count on living for 15-20 years after the age of 65, but we are living longer and longer now.  But we aren’t necessarily staying healthy as we get older.

There are different stages of spending in your retirement, as you get older you are likely to spend more on health care and less on travel.  As our clients get closer to retirement, our Retirement Savings Analysis incorporates the ability for clients to change how much they spend, and change assumptions based on one person living longer than the other.

The CFFC (The Retirement Commissioner) has coined three stages of retirement for a traditional retirement. 

The Discovery Stage (ages 65-74)

Travelling, seeing family, spending more time on those hobbies and interests, and just getting on with it. You might expect to be physically and mentally capable of living a fairly active lifestyle. In fact this phase may not be that much different than pre-retirement except that there may be more time to do things like travel and hobbies.  This stage might include work – part time or full time, or phasing out from work.

The Endeavour stage (ages 75-84) 

The need to travel, or just the hassle now of doing so, is less exciting and your focus is more on the simple things in life. Getting the family to come and visit you, thinking about perhaps downsizing the house and moving to something smaller with less maintenance. Sometimes your body is telling you to slow down a little.

The Reflection stage (ages 85 plus)

At this phase of retirement, chances are you’ve done what you have wanted and are now spending more time at home. There is often a transition to managing your own personal circumstances, which can be dominated by managing your health and well-being.

Time and age play a role in slowing down activities and abilities. Sometimes this is mental, sometimes physical and sometimes it can be financial. There are often more pressures around managing the challenges of your physical health and potentially your cognitive decline.

If you have any thoughts or opinions that you would like to share, visit us at our Twitter, Facebook or Linked In pages, and comment.

For more blog entries that you might be interested in:

The impact of money on your relationships


What is your money personality?



By Carey Church


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