Retirement looks different for everyone, and defining a desired lifestyle is the first meaningful step toward building a financial plan. Some retirees picture quiet mornings by the water, while others plan travel, hobbies, or part-time work to keep them engaged. Despite these varied goals, many Americans remain uncertain about whether their savings will support the life they envision. A CNBC survey found that 53% of Americans feel behind on retirement savings, and Northwestern Mutual reports that adults estimate they need about $1.46 million to retire comfortably. These figures reflect concern, but they do not determine outcomes. A retirement lifestyle takes shape through planning, priorities, and informed decisions. Here are some things to consider for creating a lifestyle plan.
Age
Age influences retirement decisions and how they might unfold over time. Expected retirement ages vary across generations, with Northwestern Mutual data showing Baby Boomers aiming for age 72, Gen X for 67, Millennials for 64, and Gen Z for 61. Longer life spans extend retirement timelines, as the Social Security Administration estimates that a 65-year-old today has a strong likelihood of living into their mid-80s or beyond. Individuals who retire earlier often spend more in the first decade on travel, dining, and entertainment. This makes it important to consider not only when retirement begins, but also how long it may last and how spending habits may shift over time.
Location
Location impacts both the cost and experience of retirement, making it one of the most influential lifestyle decisions retirees face. Housing, the largest expense category for retirees according to the 2024–2025 Bureau of Labor Statistics Consumer Expenditure Survey, typically drives this choice. Many individuals remain in their current home (retire in place) to limit costs, especially if the mortgage is paid off. In contrast, others relocate in search of lower expenses or different amenities. While the majority of Americans plan to stay in the United States during retirement, where they choose to live within the country can significantly affect their budget. Data from the Missouri Economic Research and Information Center shows that cost-of-living differences between regions can exceed 30%, with a far greater gap between the most and least expensive states. As a result, retirees who consider moving to high-demand areas or maintaining multiple residences must plan for higher ongoing expenses, including property taxes, insurance, and maintenance.
Beyond cost, location affects access to healthcare, recreation, and community. Retirees often weigh climate, proximity to family, and availability of services when deciding where to live. Healthcare access is particularly important, as Fidelity estimates that the average retired couple may need approximately $330,000 to cover healthcare expenses in retirement, excluding long-term care. These combined factors can be determinants of both financial stability and day-to-day quality of life.
How time is spent
Without the structure of a full-time career, retirees must decide how to spend their time. Research suggests that retirees expect to spend several hours each day on leisure activities, socializing, and dining. These activities contribute to overall satisfaction but also influence spending patterns. Travel, hobbies, and entertainment usually increase expenses in the early years of retirement, when individuals are most active.
Some retirees choose to continue working in a limited capacity, reflecting a broader shift in how retirement is defined. Fidelity Investments’ 2026 State of Retirement Planning Study found that 72% of Americans expect to retire on their own terms, with many viewing retirement as a flexible transition rather than a fixed endpoint. In fact, 61% plan to gradually ease into retirement through part-time work, consulting, or other pursuits. The Employee Benefit Research Institute similarly reports that nearly one-third of retirees already engage in part-time work, often for supplemental income and social interaction. Others dedicate time to volunteer work or community involvement, which can provide fulfillment without significantly increasing expenses.
Daily habits and social choices can measurably affect retirement spending over time, such as hosting friends at home instead of dining out frequently. Morgan Stanley research shows that retirees who entertain at home tend to reduce their overall spending more quickly, illustrating how lifestyle adjustments can support long-term financial balance without limiting social engagement.
Spending patterns in retirement tend to follow a general progression. Expenses often rise in the early years, typically between ages 65 and 74, as retirees pursue travel and other activities. Spending then moderates in the middle years before increasing again later in life due to healthcare needs. Recognizing this pattern allows individuals to plan for different phases of retirement rather than treating it as a single, static period.
The Bureau of Labor Statistics notes that inflation has averaged around 2–3% annually in recent decades. Inflation can gradually reduce purchasing power and impact how a retirement lifestyle is maintained over time. For retirees living on fixed incomes, this can dictate how often they travel, dine out, or participate in certain activities. Planning for these changes helps individuals maintain consistency in their lifestyle over the long term.
Ultimately, defining a desired retirement lifestyle involves balancing aspirations with practical considerations. Individuals who think through where they want to live, how they want to spend their time, and how their needs may change over time can create a clearer path forward. Retirement becomes more manageable when it is built around realistic expectations and informed decisions rather than a single savings target. Turning these ideas into a practical plan requires structure and guidance.
SHP Financial works with individuals who want to translate their lifestyle goals into a structured retirement plan. By helping clients evaluate spending patterns, income sources, and long-term priorities, we support a strategy that reflects how retirees want to live. Contact an SHP Financial advisor for assistance in forming a comprehensive retirement strategy that aligns with your desired retirement lifestyle. Sign up for your complimentary review today.
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