Retirement today is about more than stopping work; it’s about starting the life you’ve been waiting to live. Today’s retirees are more active, purpose-driven, and eager to explore new possibilities. Whether it’s traveling the world, launching a passion project, volunteering, or spending more time with family, retirement planning should reflect those goals, not just cover the bills.
It’s no longer enough to focus solely on saving. To make the most of this next chapter, you need a clear vision for your future and a strategy that supports it every step of the way.
Envisioning What Comes Next
The first step in building a fulfilling retirement is deciding what “fulfilling” means to you. Do you want to pursue new interests? Give back to your community? Stay involved through part-time work or mentorship? Retirement can last 20 to 30 years—or more—so it’s important to think about how you’ll spend your time, energy, and resources.
Creating a personal vision helps bring purpose to your plan. A written statement, vision board, or simple bucket list can help turn your retirement dreams into actionable goals.
Choosing the Right Ways to Save
Your savings vehicles matter. In 2025, there are several powerful tools available to help you build tax-efficient retirement income:
- Traditional IRAs offer upfront tax deductions and tax-deferred growth.
- Roth IRAs provide tax-free withdrawals in retirement, which can be a smart hedge against rising tax rates.
- SEP and SIMPLE IRAs are ideal for self-employed individuals or small business owners looking to make higher contributions.
- 401(k) plans remain a cornerstone of retirement savings, mainly when you maximize employer matches and catch-up contributions.
- Health Savings Accounts (HSAs) offer triple tax advantages and can be a valuable tool for covering healthcare expenses in retirement.
Roth conversions may also be worth considering, especially if you anticipate being in a higher tax bracket later.
Turning Savings Into a Strategy
Once your goals and accounts are in place, it’s time to create a retirement income plan that supports your lifestyle and preserves your wealth.
Diversify your income sources by coordinating Social Security, pensions, annuities, and required minimum distributions (RMDs). Timing matters—strategically delaying benefits or staggering withdrawals can reduce your tax burden and stretch your savings.
Know where your money is going. A practical framework is the “4 Ls”:
- Longevity (core expenses like housing and food)
- Lifestyle (travel, hobbies, dining out)
- Liquidity (emergency reserves for the unexpected)
- Legacy (gifts to family or charitable giving)
Invest for both safety and growth. Even in retirement, some growth investments are essential to keep up with inflation. A flexible withdrawal strategy can help protect your savings during market downturns.
Medical costs often rise with age. Consider long-term care insurance, Medicare planning, and using HSAs to offset expenses. In some cases, home equity may also be part of your financial safety net.
Not all retirement income is taxed at the same rate. Work with a tax advisor to plan withdrawals in a way that minimizes your tax liability. This might include drawing from taxable, tax-deferred, and tax-free accounts in a specific order—and being mindful of Medicare premium thresholds tied to income.
Keep Your Plan Flexible
Life changes—and your plan should, too. Set a schedule to review your finances regularly and make updates based on market shifts, new goals, or unexpected expenses. A flexible approach keeps you in control and confident, no matter what lies ahead.
Ultimately, a fulfilling retirement isn’t just about having enough; it’s about knowing how to use what you’ve saved to live the life you want. When you plan with purpose, your financial strategy becomes more than a spreadsheet; it becomes a pathway to something meaningful. Contact your Stephano Slack tax manager or partner at 610-687-1600 or TaxInfo@StephanoSlack.com to discuss your situation.
Author Jessica Parson Gartensleben, Esq., LLM, specializes in helping high-net-worth individuals and families preserve their wealth by reducing their tax burdens. With her expertise in estate and trust planning, generational wealth transfers, and family business succession, she can guide you through every step of securing your financial legacy. Contact Jessica today at 610.235.4400 or jparson@stephanoslack.com for personalized support tailored to your unique needs.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice.
Recent Comments