What Does It Mean to “Front Load” Retirement?

Why is it that people expect retirement to span 20, 30+ years, but view it as just one life stage? If you think about it, you were a completely different person at age 40 than you were at 20. So why do we assume our needs will be the same at age 85 as they are at 65?

Many people picture retirement as one long, steady season of life. You stop working, slow down, and simply live off your savings. In reality, retirement often spans decades. Your priorities, health, interests, and spending needs will change significantly during that time.

Your earliest years of retirement will likely be filled with long-postponed adventures, pursuing new hobbies, and connecting with family. As you age or experience a change in health, your focus will likely shift to home comfort, healthcare, family support, and simplifying your finances. The problem is, some retirement plans assume every year will look the same.

In truth, you may be better off “front-loading” your fun in retirement, while adjusting your strategies to better adapt to your needs as they evolve across decades. 

For many pre-retirees and retirees, this approach becomes a key part of a broader retirement income planning strategy that balances spending, taxes, Social Security, and long-term investment growth 

Remember, Money Is the Tool (Not the Goal) for Retirement

To make your retirement fulfilling and worth all the hard work, you need two things: Your health and your wealth.

Money is an integral piece to your retirement success; there’s no getting around that fact. Your savings, investments, and other resources are what replace your paycheck and free up your days to do more of what you love, with the people you love. 

Your health is just as important. It’s a big reason why we believe in making the most of your earliest days in retirement. As you age, a decline in health becomes increasingly likely. We encourage our clients to live big and do the things they love when they’re able, instead of waiting to see what the later stages of retirement bring. 

At the end of your life, it’s the memories you make now that you’ll cherish most—not how much is left in your 401(k).

What Does It Mean to Front-Load Retirement?

Front-loading retirement means recognizing that some experiences are best enjoyed earlier, when your health, energy, mobility, and curiosity are likely at their highest.

Think about what you’ve put off doing for years because you’ve been tied to a desk or limited by PTO and busy kid schedules. As you transition to retirement, consider prioritizing the goals you’ve postponed for years…

• Traveling more. 
• Hiking and backpacking in national parks.
• Visiting family across the country.
• Diving into hobbies that require more physical stamina (pickleball, gardening, musical instruments, etc.).

Prioritizing experiences now can also mean creating meaningful memories with your grandkids, while they’re young and eager to spend their days with you.

Importantly, front-loading retirement is not the same thing as spending recklessly or ignoring your financial needs for the future. Rather, it’s building and following a retirement income plan that recognizes your desires to do more now, while protecting your portfolio for the future.

Your time and health are just as valuable resources as your wealth.

The Mindshift Challenge With Spending in Retirement

Encouraging you to enjoy more of your money early is easy in theory. But for most retirees, putting it into practice is a different story. 

You’ve spent decades planning, saving carefully, and worrying if you’ll have enough to retire comfortably. With an unknown amount of life ahead, it can be scary to start spending on more than the essentials in retirement.

“Does spending more on the ‘fun stuff’ now mean sacrificing my financial security long-term?” 

It’s a question so many retirees struggle with after spending decades saving for retirement. Switching from the “accumulation” phase to withdrawing from your accounts (or “distribution”) requires a mindset shift that often takes time and a little mental rewiring. Until you get comfortable with living off your savings in retirement, every penny withdrawn might feel a little painful. 

In other words, feeling comfortable knowing “How will I get a paycheck in retirement when the paycheck stops?” 

This is where intentional retirement and lifestyle planning come into play. Following a plan built to fluctuate with your priorities and needs enables you to spend more confidently and do the things you’ve always wanted—without worrying if you’ll be okay tomorrow.

Building a Retirement Plan That Evolves With You

When you choose to prioritize experiences and lifestyle goals in the earlier years, a static, generalized withdrawal rate may not work across the span of retirement.

In some years, it might make sense to spend a little more, especially when markets are strong or when life presents exciting opportunities to cross off your bucket list. In other years, say if the markets are down, you may find it best to tighten the budget and limit your extra spending. Maintaining flexibility in your plan can help you balance your desire to enjoy everything retirement has to offer today with security tomorrow.

You may find it helpful to organize your retirement resources into buckets that allow you to draw income as needed early on in retirement (say from an easily accessible money market or high-yield savings accounts), while keeping a portion of your wealth in growth-focused investments. 

In addition, consider establishing designated savings accounts for different goals or needs in retirement. If you have access to a health savings account (HSA) through your high-deductible health plan, for example, this is a great, tax-efficient way to address rising healthcare costs in retirement. An emergency fund is another important account to prioritize funding, as it can be used to address unexpected costs without impacting your long-term savings and investments.

As you move through retirement and your circumstances change, it’ll be important to check in with your plan and adjust as needed. Just as your life is dynamic and ever-evolving, your withdrawal strategy should be too. An advisor can help make sure you stay on track with your spending.

Preparing for the Retirement You’ve Always Imagined

It might help to think of your retirement as a series of chapters, rather than one singular event. It has the potential to span decades, and you deserve to enjoy it to the fullest at every stage. Your earlier retirement years call for experiencing the adventures and connections you worked decades to enjoy. In your later years, you might seek out comfort, simplicity, and support. Both speeds are important, and they each deserve intentional retirement planning.

If you’d like to talk through your goals and what spending in retirement might look like, don’t hesitate to reach out to us at any time. We’d be happy to schedule an introductory call to introduce you to our team.