What to Think About 20, 10, and 5 Years Out from Retirement

Retirement planning is one of life’s most significant financial and lifestyle transitions. As you close in on this important milestone, thoughtful preparation becomes increasingly more valuable. The path to a fulfilling retirement begins long before you hit your retirement age goal. By understanding what to focus on at different life stages of your pre-retirement journey, we can help you build confidence and flexibility into your plans.

Let’s explore what we should begin considering as you enter the different phases of planning, from your peak earning years to the final pre-retirement countdown.

20 years out: Initial planning stages

During this time, you’re likely at your peak earning years and may have not given much strategic thought to retirement. Keep in mind that just because you’re earning more doesn't mean you need to spend more. “Lifestyle creep”, when your spending increases alongside your income, can bump up your cost of living and cause you to save less than before. This is a common mistake made by high-income earnings, especially as their income rapidly increases during this time. Working together, we can help you avoid lifestyle creep and boost your retirement savings to put you in a good position for your future.

Key conversations we can have:
● Assess your financial picture - Together, we'll determine your goals across different time horizons. Is age 65 truly your target, or is it just because that’s conventional wisdom?
● Reframe retirement - We'll talk through what retirement looks like for you specifically. We'll consider what you want retirement to look like and if you'd like to continue working.
● Examine your money mindset - We'll explore what drives your relationship with money and discuss how to remove emotional decision-making when it comes to saving and retirement planning.

10 years out: Crafting a concrete plan

Now that retirement has been on your mind, it’s time for us to dive deeper into the details of your future. At this stage, you’ve likely been working for 30 years and have a more established idea of how many more years you want to work. Your big picture may not have changed dramatically, but the details of your retirement are becoming more important and nuanced.

Key conversations we can have:
● Envision your retirement lifestyle – We'll discuss: Where do you want to live in retirement? What daily activities will fill your time? Do you wish to completely stop working, reduce your hours, or continue with full-time employment?
● Assess your finances - We'll compile your current retirement savings total and determine together if you're still on track for retirement. We'll also consider where your retirement income will come from.
● Plan for healthcare costs – We’ll begin looking into healthcare coverage to fill in the gap before Medicare eligibility and discuss contributing to a health savings account (HSA), as appropriate.

5 years out: Fine-tuning your retirement vision

With retirement on the horizon, you’re likely feeling excitement and anticipation for your next phase of life. At this time, we can work together to give your retirement vision precise refinement: the previous outline of your retirement planning got slightly more detailed over the past decade but now needs the finishing touches to make sure all of the details are in the right place.

If your lifestyle and expenses haven’t changed over the past several years, you can likely stay on your current trajectory toward your planned retirement. However, life rarely follows a linear path. Whether facing unexpected health concerns, family obligations, or shifting personal priorities, remember that flexibility is a strength, not a setback. Your retirement plan should adapt to these new realities, not the other way around. Even at this late juncture, we can work together to adjust your timeline or change retirement expectations if necessary.
Key conversations we can have:
● Perform one last financial review – We can review your savings again and confirm you’re still on track for retirement.
● Prepare your portfolio for transition - We'll discuss how to reduce portfolio risk as you enter into retirement and address any final concerns before you transition to your next life phase.
● Set up contingency plans - We’ll ensure plans are in place if you face an unexpected life change and build financial flexibility into your plans. Creating a resilient retirement strategy, together No matter where you are in your retirement planning process, you need to be ready for anything that might come your way.

The team at Affinity Wealth Management is here to help you navigate uncertainty and put you in a position to drive toward your goals, regardless of what roadblocks come up along the way. Our advisors provide personalized guidance tailored to your unique circumstances and aspirations, ensuring your retirement vision becomes a reality despite life’s unpredictability.

Not a client here yet?

We invite you to contact an Affinity advisor today. Let’s begin crafting your resilient retirement strategy to not only withstand life’s challenges, but to adapt and thrive no matter what your road to retirement looks like. Learn about our initial meeting here.