Retirement ready: Budgeting, relocating, and leaving a legacy

After several decades of working, saving, planning, and lots of dreaming, it’s finally time to retire. Are you ready?

“Ready” doesn’t just mean financially, although that’s perhaps the biggest part of it. There are emotional and logistical concerns as well, requiring a lot of planning and discussion with your loved ones. 

But it starts with your finances—specifically, your retirement budget. You’ll need to plan your expected income from all sources, manage your assets, and decide how to draw down from your savings in a safe and conservative way. Then you can set your monthly spending accordingly.

Although Social Security is just one of (hopefully) several retirement income streams, it’s frequently the anchor. Watch the video below on how Social Security works, then read on to complete your journey to retirement.

Before you blow out the candles at your retirement party, you’d better check over your finances. Hopefully, you have a nice balance in a retirement account and/or pension plan. And if you set up other income streams during your working years, such as an annuity or rental property, that’s terrific!

As you consider your retirement budget, you’ll need to answer two big questions:

One of the greatest fears among retirees is that they’ll outlive their money. That’s called longevity risk, and although the threat is real, there are steps you can take to minimize it.

The Social Security decision: Drawing early, delaying, or taking at full retirement age

The Social Security Administration (SSA) pays different amounts depending on when you start claiming benefits. There’s a standard amount for your full retirement age (67 for anyone born after 1960). You can take Social Security as early as age 62, but your benefits will be reduced. And if you delay taking benefits, you’ll get a bonus of up to 24%.

Calculating your Social Security benefits? Breakeven ages and how to decide

The Social Security breakeven point occurs when the total benefits from delaying payments equal the total benefits received if they had been taken earlier.

The 4% rule: A starting point for your retirement income strategy

If you withdrew no more than 4.2% of your portfolio in the first year of retirement, and adjusted it annually thereafter for inflation, there was a 90% chance your nest egg would last about 30 years. That became known as the 4% retirement rule.

Beyond the 4% rule: 5 alternative retirement income strategies

The so-called 4% rule has long been a popular retirement income strategy, but it’s not sustainable for everyone. Alternative strategies include delaying Social Security, changing your portfolio mix, and being tactical about taking distributions from retirement accounts.

Once upon a time, financial pros would tell early retirees that they would need 70% to 80% of their pre-retirement income to cover expenses in retirement. But those are the old rules, and they may or may not apply to you, depending on:

Some retirees end up needing more than 100% of their pre-retirement income. They eat out more, travel more, spend more on grandchildren and other family members, and don’t scale back their wardrobe and other work-related expenses as much as anticipated.

How to create a budget for retirement: A financial plan for your newfound freedom

Budgeting for retirement may seem challenging, but identifying your sources of retirement income and itemizing expenses can help keep you on track.

Will my Social Security benefits be taxed?

Social Security benefits are partially taxable based on your filing status and income. Calculate the taxable portion using Form SSA-1099, including wages, pensions, and more.

How to pick the best place to retire: 4 questions to ask yourself

The best place to retire isn’t about location alone. Know your personal priorities, including the people you want to live close to, what you plan to do, and whether you really need to relocate.

Snowbird? Empty nester? Tax tips to consider if you spend time in two states

Day counts and documentation matter. Spending more than 183 days in a high-tax state, working remotely from another state, or maintaining strong ties in two places can trigger tax obligations. Planning ahead—tracking days, keeping records, and understanding filing requirements—helps avoid surprises.

No matter how far along you are into your retirement years, it seems there are always more decisions to make. For example, you might stay in your home initially, or move to a 55-plus community. You might consider a continuing care retirement community (CCRC), aka life plan community, to help you transition to a higher level of care should you need it later in life.

And finally, what do you want your legacy to be? Your estate plan is part of it, but it’s also the impact you’ve made on the world around you. It’s important to communicate, share the family history, and let your intentions be known clearly and openly. No one wants their lasting legacy to be fights, hurt feelings, and a lack of closure.

Senior living options: Finding the right fit for your needs

Housing options for seniors range from independent living to assisted living or short-term skilled care, depending on the level of assistance required.

Life plan communities: What they offer and how they work

A life plan community combines housing, services, and health care, offering independent living, assisted living, and skilled nursing as residents’ needs change.

Estate planning checklist: Are the pieces in place?

An estate planning checklist should include a will, a list of your assets and debts, where they’re held, and any directives or powers-of-attorney.

Create a lasting impact by leaving a legacy

Leaving a legacy isn’t just for wealthy families or people with big estates. Leaving a legacy goes beyond simply passing on heirlooms; it’s about making an impact and a statement about what matters to you. Follow these steps to start a conversation with family, friends, or organizations that mean the most to you.

What is a reverse mortgage, and should I consider one?

A reverse mortgage is actually a loan, with the payments consisting of slices off the equity in your home. It can help you pay your bills in retirement, but the fees can be hefty.

Your retirement income: How required minimum distribution (RMD) rules work

Most tax-deferred accounts require minimum distributions (RMDs) to start when you turn 73 and are taxed as ordinary income. Roth IRAs and 401(k)s are exempt.

What is an elder law attorney, and when do you need one?

Elder law attorneys offer assistance with estate planning, advance directives, pensions and other legal matters related to aging and elder care.

5 scams that target seniors and how to avoid them

Seniors are often more vulnerable to financial scams that can wipe out their savings. Learn the most common scams that target the elderly & how to avoid them.