Retirement … after years of working hard and carefully planning, it’s the time when you can finally enjoy more freedom. It might mean traveling to places you’ve always dreamed of, spending more time with family, or simply having the flexibility to enjoy your days as you choose.
But even with the excitement, retirement often brings new financial worries.
In fact, many Americans say they’re anxious about outliving their savings, managing rising healthcare expenses, or not knowing how much they can safely spend.¹ Financial stress can put a cloud over what should be your golden years.
The good news is that you can take proactive steps to reduce those worries. By creating a clear plan, managing expenses wisely, and protecting your savings, you can help lower your stress and focus on what truly matters.
Here are practical strategies to help you enter retirement with more confidence and less anxiety.
1.Build a retirement budget. One of the biggest stress relievers is knowing exactly what you can afford. Take time to outline your monthly expenses — from housing and utilities to leisure and travel. Compare these expenses to your projected retirement income from Social Security, pensions, savings, and investments. A clear budget can help prevent overspending and reduce financial uncertainty.²
2.Plan for healthcare costs. Healthcare is often one of the largest and most unpredictable retirement expenses.³ Consider long-term care insurance, supplemental Medicare coverage, or building a dedicated “healthcare savings fund.” Planning ahead for these costs can help ensure medical bills don’t derail your financial stability.
3.Keep debt under control. Entering retirement with high-interest debt, such as credit cards or large loans, can be a major source of stress. Try to pay down as much debt as possible before retiring, or create a structured plan to manage it. Lowering debt can free up more of your retirement income for essentials and enjoyment.⁴
4.Maintain an emergency fund. Even in retirement, life happens. Unexpected home repairs, medical needs, or family emergencies can create financial strain. Experts suggest having three to six months of expenses in a readily accessible account.⁵ This cushion helps you avoid dipping into long-term investments at the wrong time.
5. Diversify your income sources. Relying on a single income stream can feel risky. In addition to Social Security or pensions, consider other options such as dividend-paying stocks, bonds, rental income, or annuities. Diversification can provide more predictable cash flow and reduce the stress of market ups and downs.⁶
6. Work with a financial professional. According to surveys, retirees who work with a financial advisor report higher confidence in their financial health.⁷ A professional can help you adjust investments, optimize withdrawal strategies, and prepare for changing needs over time. Having expert guidance can give you peace of mind and reduce second-guessing.
7. Keep perspective. Financial stress is normal, but it doesn’t have to control your retirement. By preparing with a thoughtful plan, limiting debt, and protecting your savings, you can focus more on enjoying the life you’ve worked so hard to build.
If you’re feeling uncertain about your retirement finances, don’t go it alone. Let’s have a conversation — together, we can work on a strategy that fits your unique situation.
If you’re feeling uncertain about your retirement finances, don’t go it alone. Let’s have a conversation — together, we can work on a strategy that fits your unique situation.
Disclaimer:
¹, ⁷ Mind, Body, and Wallet® 2024: Addressing well-being during life’s pivotal moments, Guardian’s 13th Annual Workplace Benefits Study, 2024, https://www.guardianlife.com/reports/mind-body-wallet
² How to Create a Retirement Budget, Fidelity, 2024, https://www.fidelity.com/viewpoints/retirement/retirement-budget
³ How Much Will You Spend on Healthcare in Retirement?, AARP, 2024, https://www.aarp.org/health/medicare-qa-tool/how-much-spend-health-care-retirement/
⁴ Managing Debt in Retirement, U.S. News & World Report, 2024, https://money.usnews.com/financial-advisors/articles/managing-debt-in-retirement
⁵ Emergency Funds: How Much Should You Have?, Investopedia, 2024, https://www.investopedia.com/terms/e/emergency_fund.asp
⁶ Retirement Income Strategies, T. Rowe Price, 2024, https://www.troweprice.com/personal-investing/resources/insights/retirement-income-strategies.html
This material is intended for general use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.
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7655345.1 Exp. 2/27
