Retirement isn’t just the end of a career. It’s the beginning of a new chapter where your time truly becomes your own.
Whether you’re looking forward to travel, volunteering, family time, or simply enjoying slower mornings with peace of mind, a well-structured financial plan is what turns possibility into confidence.
Here’s how to make the most of the years ahead.
Shift from saving to sustaining
When you’re at or near retirement, your focus moves from building wealth to sustainably generating income and preserving your nest egg. It’s about creating reliable cash flow while keeping your assets working efficiently.
Review your portfolio with an eye toward balance: maintaining enough growth-oriented investments to outpace inflation, while anchoring your income needs in stable, lower-volatility assets. Think of it as building a retirement paycheck backed by thoughtful diversification.
Coordinate income sources strategically
Your retirement income likely comes from multiple places: Social Security, pensions, IRAs, brokerage accounts, and perhaps part-time work. The key is coordinating these sources for tax efficiency and long-term sustainability.
• Social Security timing: Be aware of the tradeoffs of delaying benefits, which could boost lifetime income versus the opportunity cost of where you’ll need to source income while you wait.
• Pensions and annuities: Compare monthly payouts versus lump sum options to see what’s truly worth more over time.
• Portfolio withdrawals: Drawing strategically from after-tax, tax-deferred, and Roth IRA accounts can help smooth tax rates and protect future benefits.
Optimize taxes in the drawdown years
Income taxes are often the largest expense for retirees, so tax-smart planning doesn’t end at retirement. In fact, it becomes even more vital once you start taking distributions. Consider:
• Partial Roth conversions during lower-income years before Required Minimum Distributions begin.
• Strategically planning withdrawals to stay within desired tax brackets and manage Medicare premium surcharges known as IRMAA.
• Timing charitable giving, such as Qualified Charitable Distributions from IRAs, to reduce taxable income while supporting causes you value.
These strategies can effectively let you keep more of what you’ve earned and create flexibility in future years.
Make health planning a financial priority
Healthcare costs often rise faster than inflation and can be a significant risk to your retirement portfolio.
Proactive steps can prevent financial surprises later: reviewing Medicare supplement options early, maintaining a reserve for out-of-pocket expenses, and evaluating long-term care protection. In Massachusetts and other states with strong healthcare ecosystems, understanding local coverage rules and provider networks adds another layer of protection.
Protect and share your legacy
Retirement planning naturally leads to legacy planning: how your assets and values carry forward. Even modest estates benefit from a coordinated plan that includes a will, named beneficiaries, powers of attorney, and trusts where appropriate. Strategic gifting during your lifetime can reduce estate exposure while providing personal joy and impact.
Review and recalibrate regularly
Retirement isn’t static, and neither should your plan be. Market conditions, tax laws, and personal goals all evolve.
Retirement is your reward for decades of effort, and the opportunity to live fully on your terms. With a coordinated plan for income, taxes, health, and legacy, you can approach each day with confidence that your financial life supports the lifestyle you’ve earned.
Molly Brown is a partner and financial planner at ClearPath Financial Partners in Northborough.
