The Changing Concept of Retirement: Part II from Quay Financial Group

The Changing Concept of Retirement: Part II

Today, many people are delaying their actual retirement date. Every year you continue to work can help your planning in two ways. First, delaying retirement means there is another year you are working and earning an income and saving for retirement. Second, because you are still working, you may not need to use your retirement savings that year for financial help. Delaying your retirement allows your nest egg to hopefully grow for another year.

For many Americans, retirement today can be broken down into four phases:

  1. Pre-retirement;
  2. Early retirement;
  3. Full retirement; and
  4. Final retirement.

Pre-retirement Phase

Pre-retirement is that time period when you begin to take a look at slowing down and begin to plan your life after your career. This is the time you should ask yourself how much money you will need and how you can make the most of your retirement. As a starting point, most experts suggest that you will not need your full earnings to carry you through retirement but a high percentage of it. Obviously, the percentage is higher if you earn less, and can be lower if you earn more. Although everyone’s situation is different, one of the keys to success is to consider preparing an active budget of your expected expenses in retirement. You can then review how much you have saved and invested to meet your unique situation.

Remember, most people in retirement pare back certain expenses like commuting costs and clothes that are required for work. However, some incur additional expenses such as health care. It is crucial in this phase that you map out what you want your retirement to look like and how and where you expect to live so that you can begin to plan for life after your career has ended. This time period is also helpful to think about setting some goals you can stick to and monitor your cash flow.

Early Retirement Phase

The next stage is the early stage of retirement. During this phase, many people can still have a lot of energy and enthusiasm and therefore can focus on enjoying physical sports (like golf and tennis) and traveling. During this phase it is important to have a plan for cash flow. It can be very likely that your expenses will be higher in these early years due to potentially more extensive travel and activities.

It is not unusual today for many individuals in this early stage to work on a part-time basis. In addition to traditional work, many people in this stage also still work on boards of trustees and volunteer at not-for-profit organizations.

The increase in life expectancy can affect your decisions during this stage. Also, many people during this stage need to replace or supplement corporate benefits such as life and health insurance and, if you work part time, possibly disability insurance.

The challenges of this early retirement phase are not just financial. They can also be about filling time. Many retired clients find themselves looking for work often part time, simply out of boredom. Although early retirement may sound appealing, it is important to think through the financial and non-financial implications for making this decision. It is essential that during this period that you hold a full review of your estate plan so any unexpected situations do not interrupt the comfort of you or your loved ones. This is another area where we can offer assistance to clients.

Be sure to keep an eye out for our next article that will include more detail about the final phases of retirement and strategies to help you tackle them.

For more information about helping you plan and save for your goals, we would like to offer you a complimentary Financial Checkup. To schedule your appointment, please contact us at 770 924 5440. Be sure to check out our first article about retirement.

We refer you to Stage 1 and Stage 11 of retirement articles written by Quay Financial Group.


At Quay Financial Group, Inc. we believe in the welfare of our clients by creating a strategy to pursue personal wealth for now and through retirement. With services including planning for retirement and life events, saving for college, and advising on tax reduction strategies, we can help create a comprehensive and individual approach to your financial plan in order to help you stay on track with your personal financial goals. By serving our clients under a Fiduciary standard, clients’ interests must come first.

Everyone’s situation is unique and must be analyzed and evaluated to map the best direction for you. Our mission is to make your goals and dreams a reality. From analyzing the current risk of your investments and managing assets, to determining cash flow needs in retirement and optimizing Social Security, we strive to tailor a plan that fits you, your family, and your goals. Welcome to Quay Financial Group, Inc.

“Michelle Quay” is an Investment Adviser Representative of, and offers Securities and Investment Advisory Services through Woodbury Financial Services, Inc. (WFS), member FINRA/SIPC. WFS is separately owned and other entities and/or marketing names, products or services referenced here are independent of WFS.

This article is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer or financial professional. A Roth IRA distribution is qualified if you’ve had the account for at least five years and/or the distribution is made after you’ve reached age 59 ½. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that rebalancing investments may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events will be created that may increase your tax liability. This article provided by MDP, Inc. © 2017 APFA, Inc.