Retirement is often envisioned as a season of travel, time with family, and pursuing long-postponed passions. But as that chapter approaches, especially in a year like 2025, with high inflation and continued market uncertainty, some of that excitement can give way to doubt:

Can the retirement lifestyle that’s been imagined actually be sustained? What will daily life look like? Will the money last?

This disconnect between retirement dreams and retirement readiness is common and completely resolved with the right planning.

The Retirement Vision Problem

Vague retirement aspirations like "travel more" or "spend time with grandkids" are easy to voice, but they offer little direction for a concrete financial plan. A truly effective retirement strategy starts with painting a vivid picture of your ideal retirement. Consider these practical questions:

  • Will your travel involve several international adventures annually or just a few long weekends?
  • Are you planning to stay put, downsize, or relocate?
  • Will you embrace full retirement or continue working part-time?

These lifestyle choices aren't just preferences; they are key financial drivers.

Income Vs. Expenses: The Real Equation

Many pre-retirees assume that once the paycheck stops, their spending will automatically go down. But in reality, the early years of retirement are often the most expensive. More free time often leads to more spending, particularly on discretionary items like travel, hobbies, and home upgrades.

The key is to match projected expenses with reliable income sources such as Social Security, pensions, investment withdrawals, or annuities, while building in flexibility for health care costs, inflation, and long-term needs.

The Risk Of ‘Set It And Forget It’

Some people treat retirement planning as a one-time event—set a number, reach it, and retire. But retirement is a journey, not a finish line. A sound plan needs regular check-ins to account for:

  • Market fluctuations
  • Lifestyle changes (like a new grandchild or unexpected move)
  • Legislative changes (tax law, Medicare, etc.)

A dynamic plan is more resilient and better aligned with the realities of a 20- to 30-year retirement.

Turning Dreams Into Strategy

Bridging the gap between retirement dreams and reality starts by doing three things:

  1. Get Specific: Instead of abstract goals, define what you really want out of retirement.
  2. Stress Test The Plan: Use realistic assumptions, run projections, and factor in scenarios like living longer or higher-than-expected inflation.
  3. Adjust Early And Often: The earlier you identify a gap, the more options you have to close it—whether through savings, investment adjustments, or shifting timelines.

Final Thought

Retirement isn’t just a financial milestone—it’s a lifestyle transition. With a high level of retirement readiness, the better prepared you will be to enjoy your retirement dream. And if your current plan doesn’t align with your vision, now is the best time to make a change.

As always, it is important to consult a tax or investment professional before making these important decisions.

 

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This document is for educational and informational purposes only and does not constitute an advertisement or solicitation of any securities or investment services provided Mainstay Capital Management, LLC (“MCM”). This document should not be construed as investment, tax, or legal advice, or a solicitation, or a recommendation to engage in any specific strategy. MCM is an independent investment adviser registered with U.S. Securities and Exchange Commission. MCM specializes in workplace savings plan portfolio management and retirement planning advice for active employees and retirees. This document was prepared by MCM primarily based on data collected and analyzed by MCM. The opinions expressed herein are those of MCM alone and are for background purposes only. MCM does not purport the analysis to be full or complete or to constitute investment advice and should not be relied on. In addition, certain information contained herein or utilized to draw the conclusions contained herein has been provided by, or obtained from, third party sources. While MCM believes that such sources are reliable, it cannot guarantee the accuracy of any such information and does not represent that such information is accurate or complete. All materials and information are provided “as is” without any express or implied warranties by MCM. MCM charges its fee based on a percentage of assets under management, which creates an incentive and conflict of interest to increase assets in that account. Furthermore, MCM has two different fee schedules, and therefore has a conflict of interest when assets or accounts move from the lower fee schedule to the higher fee schedule. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Consult your financial professional before making any investment decision. Please see MCM’s Form ADV Part 2A and Form CRS for additional information.