Four Phases of Retirement: Full Retirement

Full retirement is the third phase of retirement.

This next stage is the middle of your retirement cycle. By now, you have hopefully realized your travel dreams and fulfilled many of the goals you had planned for in your retirement.

Although you may be in good health, many people during this phase are more likely to decide to slow down and may possibly find more enjoyment in activities that are less fatiguing and slower paced. The hassles of traveling don’t sound as tolerable. Instead, local events and the pursuit of hobbies that are less physically tasking sound more appealing.

During this phase many people belong to groups or clubs that meet regularly and provide social interaction. Your expenses may actually be lower than in the early retirement phase if your activities (such as traveling) have minimized.

In today’s low interest rate environment, many experts are recommending that withdrawals from retirement plans be more conservative than those taken during periods of higher interest rates. This is why we like to sit with clients to help determine an appropriate withdrawal schedule.

Our Four Phases of Retirement series concludes next week.