Retirement. It’s often used as a shorthand for the reward after decades of work — the time to focus on family, travel, hobbies, and the things that matter most. But retirement is more than a period to relax; it’s a stage of life many people prepare and save for over decades.
Financial planners frequently divide retirement planning into phases because each stage has distinct characteristics, decisions, and actions. Your choices about lifestyle and housing will evolve throughout these five phases, and planning ahead helps ensure you can enjoy the retirement you envision.
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Accumulation
What is it? The Accumulation phase typically begins when you enter the workforce and starts saving for retirement. For many, this is the longest phase. Early in your career you may earn less and face expenses like student loans, a first home, or raising a family, so saving can be challenging. Still, saving even small amounts early matters because of compound interest — time is your most powerful ally. There isn’t always a strict end date for Accumulation, but it generally continues until you stop working full time.
What are my to-dos? If your employer offers a 401(k) or similar plan, enroll and contribute at least enough to capture any employer match — that match is essentially free money. Aim to increase contributions over time, targeting roughly 10 percent of income when possible. If you’re self-employed or lack access to an employer plan, consider opening a Roth IRA or traditional IRA, or exploring SEP or SIMPLE IRAs or a solo 401(k). Use reputable online educational tools to learn the basics and start visualizing what you want your retirement to look like so you can save accordingly.
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Pre-Retirement
What is it? Pre-Retirement often begins around age 50 or about 15 years before your planned retirement. It remains part of Accumulation, but it’s also when planning becomes more specific and urgent.
What are my to-dos? Meet with an experienced financial planner to run retirement projections and determine whether your savings are on track. Learn how Social Security and Medicare work and consider long-term care insurance (LTCi) options, since long-term care expenses are not covered by Medicare and can be costly if deferred. Discuss housing preferences with your partner and family — where you want to live and what lifestyle matters most — so you can shape your savings and housing plans accordingly.
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Early Retirement
What is it? Early Retirement covers the period from leaving the workforce until your early 70s. Some retirees pursue encore careers or part-time work during this stage, staying active and engaged while supplementing income.
What are my to-dos? Adjust your budget and distribution strategy as you begin withdrawing from retirement accounts. Work with a qualified advisor to design tax-efficient distributions and decide which assets to tap first to support income needs while preserving long-term financial security. Resolve health insurance questions, including Medicare enrollment and whether retiree benefits from a former employer apply.
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Mid-Retirement
What is it? Mid-Retirement generally starts around age 70 and continues as long as you live independently. This stage varies widely depending on health, genetics, and lifestyle. Tax and estate planning become more critical, especially for those with large tax-deferred accounts. Required minimum distributions (RMDs) and their tax implications must be managed carefully to avoid unexpected tax burdens.
What are my to-dos? Review your tax and withdrawal strategy with a financial advisor and CPA to ensure efficiency. Make deliberate decisions about where you’ll live as you age — remain in your current home, downsize, move closer to family, or transition to a retirement community. Research housing options thoroughly, considering the types of care and services available if needs change. If a continuum-of-care option appeals to you, compare communities and understand the services and contracts they offer. Have candid conversations with family about your preferences and the plans you want them to follow if your health declines.
>> Related: Prospective CCRC residents should investigate services, contracts, and care levels to make informed choices.
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Late Retirement
What is it? Late Retirement is the stage when a senior’s health requires extensive daily support and recovery is unlikely. Care needs become the primary focus.
What are my to-dos? If you planned ahead — discussed preferences with family, prepared estate and care plans, and chose appropriate housing — implementing care should be more straightforward. Focus on executing the decisions and arrangements you made earlier so that care aligns with your values and financial resources.
>> Related: Ensure loved ones understand your end-of-life wishes and have access to the documents and instructions needed to carry them out.
Are you on track?
Longer lifespans and the potential for extended long-term care make early, thoughtful planning essential. Too often families and advisors take a reactive approach, addressing housing and healthcare needs only after a crisis occurs. If you are in Mid-Retirement and still active, now is an ideal time to map out plans for the later stages. Procrastinating may leave you and your family facing stressful, complicated, and costly decisions later on.
Begin evaluating housing and care options in your area and discuss your priorities with trusted advisors and family so that your retirement years can be as secure and fulfilling as possible.