Smart Retirement Habits for Retirement Success and Security

Retiring does not signal the end of retirement planning. It’s the beginning of a new phase of planning, known as the distribution phase. This stage requires discipline, awareness, and new habits that focus on preserving savings, creating reliable income, and preparing for the unexpected. It’s also possible to continue building wealth during this phase, depending on your personal goals, strategy, and circumstances.

By working with your financial professional and making thoughtful adjustments, you can enjoy financially independent, work-optional years while avoiding risks that may erode your stability. Here are six habits that can help you feel confident and in control as you move into and throughout retirement.

1. Adjust Spending and Saving Habits for Income Changes

Retirement income often comes from multiple sources: Social Security, pensions, withdrawals, or part-time work. This income can also fluctuate depending on markets or benefit timing. To adapt, you might need to rethink your spending habits. For instance, you might consider:

• Downsizing your home to reduce maintenance costs and taxes
• Prioritizing essential expenses
• Keeping discretionary expenses flexible and controlled so you can easily scale up or down
• Reducing or eliminating debt

Make it a habit to set a monthly budget and review it at least once a year or whenever your circumstances change. This helps keep income and spending aligned so essentials like housing, food, and utilities are always covered.

Tip: When income exceeds spending, set aside the surplus in a reserve account or reinvest it for future needs.

2. Plan Ahead for Special Expenses and Gifts

Retirement often brings opportunities for generosity and memorable experiences, like helping family, supporting charities, traveling. These opportunities can be rewarding, but without planning, they can strain your finances.

Make it a habit to create a “special expenses” budget each year, so that your generosity and adventures enhance your retirement rather than disrupt it. If you have specific goals in mind, work with your financial professional to ensure they fit comfortably within your broader plan.

3. Review Your Withdrawal Strategy

The way you draw income from your accounts can significantly affect the longevity of your savings. Withdrawals that are too high may deplete your savings, while being too conservative may prevent you from enjoying the lifestyle you’ve earned.

According to the Employee Benefit Research Institute (EBRI), only 18% of retirees are very confident they won’t outlive their savings.¹ Regular reviews can help boost that confidence by considering market conditions, lifestyle changes, healthcare costs, and tax implications. Coordinating withdrawals across taxable, tax-deferred, and Roth accounts can also help reduce taxes and smooth income.

Make it a habit to review your withdrawal strategy at least once a year to confirm it still fits your needs, tax situation, and projections.

4. Budget for Health Care

Health care is one of the biggest and fastest-growing expenses most retirees face — right up there with housing and food.¹ According to the Employee Benefit Research Institute, it consistently ranks among the top three spending categories for retirees.

And while those costs start high, they don’t stop climbing. Data from the Bureau of Labor Statistics shows that adults between 55 and 64 spend over $7,100 a year on health care. By age 75 and older, that number rises to more than $8,000 annually.² These increases often outpace general inflation, putting extra pressure on a fixed income over time.

That’s why it’s important to habitually build health care into your monthly and annual budget—not just premiums, but also co-pays, prescriptions, and potential long-term care. Treating this like any other recurring expense can help minimize surprises.

Tip: Explore supplemental insurance or long-term care coverage as part of your overall plan. Staying proactive about health care can help protect your financial stability and confidence.

5. Review Insurance and Estate Plans Annually

Your insurance needs and estate documents should evolve alongside your life and family. Neglecting these reviews can leave gaps in protection or cause unintended outcomes for your legacy.

A valuable habit is to review your insurance policies and estate plan each year. This includes reviewing life, liability, and property coverage, as well as updating wills, trusts, and beneficiaries. Even if no major life events occur, annual reviews and small updates can ensure your protection and legacy remain aligned with your intentions.

6. Schedule Regular Financial Check-Ins

Retirement can last 20–30+ years, which means your financial plan should evolve as markets, tax laws, and personal circumstances change over time. Without ongoing attention, even a solid plan can fall out of alignment with your needs.

One of the most valuable habits you can develop is meeting with your financial professional regularly. Together, you can review important areas of your plan and stress-test it against market downturns, rising health costs, or lifestyle changes. According to the CFP Board, retirees who work with a financial professional report feeling more confident and less stressed about money than those who don’t.³

Why it matters: Your financial professional can help you stay disciplined when markets fluctuate, evaluate whether your withdrawal strategy and spending align with your goals, and adjust your plan as life evolves. They can also help identify opportunities like tax-efficient withdrawals or rebalancing strategies.

Take the next step: If it’s been a while since your last financial check-in, schedule a meeting to review your plan. A thoughtful conversation today can help ensure your retirement plan continues to support the lifestyle and legacy you’ve worked hard to build.

These Habits Can Help Keep Your Retirement on Track

These healthy financial habits can help you protect what you’ve built and enjoy your independence with confidence. Work closely with your financial professional to:

• Align spending with income
• Plan for special expenses and gifts
• Review withdrawal strategies
• Budget for health care
• Keep insurance and estate plans current
• Meet and communicate regularly

By maintaining these practices, you’ll be better positioned to manage risks, adapt to changes, and feel confident about your future. Want to strengthen your retirement plan? Now is a great time to meet with your financial professional and put these habits into action.

^{1) Employee Benefit Research Institute, 2023 Retirement Confidence Survey.
2) U.S. Bureau of Labor Statistics, Consumer Expenditure Surveys, 2023: Spending Patterns by Age Group.
3) CFP Board, Retirement Planning Survey, 2022.}

^{This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.}