Every year, millions of people begin to think about their transition to retirement. Sometimes, this transition is planned years in advance; other times, it happens abruptly through layoffs, disability, or family circumstances. Although each individual’s retirement journey is unique, it generally follows three phases, sometimes referred to as “go-go,” “slow-go,” and “no-go.” Needs and priorities will shift between these phases, and planning can help make the most of the retirement years without sacrificing future flexibility.
Go-Go Years
The first phase of life after work, the “go-go years,” is characterized by abundant energy and good health. You’ve handed in your resignation, packed up your belongings, and had a retirement party. No longer waking up to an early morning alarm clock or adhering to an office schedule, you can travel extensively or put more time into your hobbies. If you have always wanted to visit all the National Parks, walk the Camino de Santiago, or brush up on your Italian, you now have the time to do it.
While the go-go years may have an initial honeymoon period, there might also be a letdown as the excitement fades. After decades of going to the office, suddenly having no structure to your day and no built-in socialization may feel lonely and isolating. In addition, decoupling your identity from your profession can be a delicate process after working non-stop for most of your life. Rebuilding routines through hobbies, volunteer work, or other structured activities opens you up to new communities and can provide a sense of purpose, leading over time to a new and fulfilling identity.
Slow-Go Years
Having accomplished much of what you wanted during your go-go years, your craving for new experiences might wane as your body gradually starts slowing down. Your back pain persists instead of going away on its own, and the complexity of your CPAP machine adds friction to your travels. During these “slow-go years,” your peers may also be struggling with their own health challenges, and as friends start passing away, you may begin to feel more isolated with fewer people who share memories of the times you spent together.
It’s not all bleak. You now have become a wise elder in your community, able to offer guidance and perspective formed through decades of life experience. If you have grandchildren, they are now at an age where you can do more activities together. Having friends of various ages and from different generations may help you feel more interconnected and less lonely. Now is also the time to reflect on any unfulfilled dreams or unfinished business.
No-Go Years
As health challenges mount, you enter the “no-go years.” You have more limited time, energy, and maybe capacity. You now walk with a cane or use a wheelchair. Your daughter says you often repeat yourself, and you wonder if she’s right. As your physical or mental capacity declines, your care needs become more complex. At some point, you might need to hire home health aides or move into an assisted living community for long-term care.
During this phase, legacy becomes top of mind. Will your assets be spread among your heirs in a way that you would like them to be? Are the right people in place to take care of your affairs? Now is also a good time to consider ways to help your family or community while you’re still able to enjoy the benefits. Ensuring your estate plan is up-to-date will make things easier for your loved ones after you have passed away.
Preparation is Key
Retirement involves distinct phases with unique opportunities and challenges. As financial planners, we’ve counseled many clients through the ups and downs of this journey. If you’re thinking of making the shift away from work in the next few years, now is a great time to start preparing. At North Berkeley, we help our clients prioritize lifestyle choices for their go-go years without sacrificing care during their no-go years. Savoring life during retirement means getting to enjoy what you have worked so hard for. The right planning can mean the difference between simply getting by and truly flourishing.
