Retirement can be an emotional and financial transformation, a declaration of financial independence. When you're approaching a new season in life, change can be challenging, even intimidating at times. Are you considering retirement? Consider some of the following:
- Is the time right? After a long career, it may be time for a change, time for rest. It's important to enter retirement with a plan for staying mentally and physically active, in contact with other people.
- Are you ready to pursue traveling or other hobbies? Career demands may have caused the deferral of some activities or pursuits, and retirement provides you with the time needed for activities you enjoy.
- Are you experiencing shifts in your professional role? Jobs often evolve during economic transitions, requiring employees to make greater adjustments. While employers frequently propose early retirement during these times, it is wise to consider arguments against retiring immediately. Such reflection may reveal that you need further emotional or financial readiness before fully committing to the transition.
- Is your professional life a source of fulfillment? Established daily patterns are often difficult to alter.
How long should you plan for?
In 1900, life expectancy at birth in the United States was just 49.24 years. However, the latest data shows that Americans born in 2023 could expect to live an average of 78.4 years.
For those planning on retirement, the more pertinent question is, how long does my money need to last? According to the most recent available data, the life expectancy for men aged 65 in 2023 was 18.2 years (to age 83), and for women, 20.7 years (to age 85). This means that retirement can often last between 25 and 30 years. The table below shows expected years of life remaining at various points during retirement.
| Age | Expected years of life remaining for men | Expected years of life remaining for women |
|---|---|---|
| 65 | 18.7 | 20.7 |
| 70 | 14.7 | 16.8 |
| 75 | 11.5 | 13.2 |
| 80 | 8.5 | 9.9 |
| 85 | 6.1 | 7.0 |
| 90 | 4.1 | 4.8 |
Source: National Vital Statistics Reports, Vol. 74, No. 6 (July 15, 2025)
How much will you need?
Developing a realistic retirement budget is an important exercise, one that requires an examination of values as much as resources. Some people enjoy living rather modestly during retirement, while others may be accustomed to a lifestyle of luxury.
Analyze your budget for potential savings
What costs are truly necessary, and which could be reduced or removed if your financial situation shifted?
Structural versus peripheral expenses
Some costs are binding, not subject to modification, and failure to meet them means a structural change in retirement. If you own real property, you must pay the taxes. If you have a mortgage, you must make the payments. If you own a car, you have to pay for routine maintenance. Trips, vacations and gifts, in contrast, can be peripheral expenses.
Fixed versus inflation-prone costs
Some retirement expenses can fluctuate with inflation, while retirement income is generally fixed. The response to inflation may include cutting back on optional purchases or substituting less expensive items for those that become unaffordable. Understand also that long, modern retirements typically include three phases. The first phase is active retirement, which is a time filled with travel and the pursuit of deferred dreams. The second phase is passive retirement, which typically begins in the mid-70s, when activities are gradually reduced. Lastly, the final retirement phase is often marked by declining health and the need for long-term care. Consider how each phase may require a different retirement budget.
The value of trusted advice
Arvest Wealth Management can help clients achieve financial independence, using tax-sensitive techniques as appropriate, and maintain it by providing unbiased investment advice and trusteeship.
For specifics on how we might help you, find an Arvest Wealth Management client advisor. Careful planning can save you time, worry and money.
This content has been prepared by The Merrill Anderson Company and is intended as a general guideline.
© 2026 M.A. Co. All rights reserved.
Arvest and its associates do not provide tax or legal advice. The information presented here is not intended as, and should not be considered, tax or legal advice. Consult your tax and legal advisors accordingly.
