Retirement Planning: A Simple Question, A Complex Answer

While playing golf recently, I asked my partner about his retirement plans. He shrugged and said, “How do I know? There are so many variables.” He’s absolutely right. It’s an easy question to ask—but one of the hardest to answer.

If you’re approaching retirement age, you may be wondering, “Can I retire yet?” While the question is simple, the answer depends on a range of variables, including your lifestyle choices, savings rate, spending habits, and personal goals. Unfortunately, generic “rules of thumb” don’t always account for your unique financial picture. These guidelines may offer a helpful starting point, but they’re often too broad to build a real retirement plan around.

Retirement Spending Isn’t Linear

In a notable working paper titled “Estimating the True Cost of Retirement,” David Blanchett, CFA, CFP®, and Head of Retirement Research at Morningstar, shared a powerful insight: most retirees do not spend at a steady rate throughout retirement.

Instead, spending tends to decrease over time, particularly after the initial years of retirement. According to Blanchett’s research, retirees typically spend more in their early retirement years—on travel, hobbies, dining out, and family experiences—and spend less as they age. In fact, by age 85, retirees spend roughly 20% less (adjusted for inflation) than they did at age 65.

This trend confirms what we’ve observed with many clients: retirement is not a flat line—it’s a curve. Planning for retirement with a fixed annual expense projection may overestimate how much you’ll need, especially in later years.

There’s No One-Size-Fits-All Plan

At Gainplan, we believe retirement planning should be as personalized as your fingerprint. Instead of offering broad assumptions or one-size-fits-all advice, we take the time to understand your situation—and the unique life you want to live.

Based on your individual goals, you might find that you can:

• Retire earlier than expected,

• Transition into a part-time or encore career that excites you,

• Fund retirement with less money than you thought necessary, or

• Maintain your savings targets while enjoying a higher standard of living in retirement.

If you haven’t begun mapping out your retirement, there’s no better time than now. As my dad always told me:
“If you wait for all the lights to turn green, you’ll never leave the house.”

Let us help you take that first step—strategically, confidently, and with a plan tailored to you.

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