Understanding the Four Phases of Your Retirement Budget Strategy SHP Financial

One way of thinking about retirement is that it happens in phases. The length of each phase and the strategies for each are going to differ from person to person, but this can be a helpful way to break down a very complex topic. We’re going to break down each one of the phases and explain some important financial moments in each.

Phase 1: Pre-retirement (Approximately Ages 50-62)

This is around the age when you will start to have a sense of what you have saved and what your expenses might look like. When you are 20 years old, it can be hard to picture what retirement might look like for you. Even at 30 or 40, retirement life may be a long way off, and there are a lot of potentially unexpected changes that could come for you, so it can be hard to accurately judge what exactly you will have or need at the time that you retire. But at around 50, after hopefully many years of retirement saving, retirement strategies and expectations are probably starting to come into focus. There are some important financial decisions that you will need to start to make around now as well. For instance, you’ll need to consider when to access social security. You’ll also need to start thinking about whether you should be making catch-up contributions to your retirement accounts.[1]

Phase 2: Early Retirement (Approximately Ages 62-70)

This is when all your planning starts to actually get field tested. You’ve shifted from earning income from a job to fixed income, withdrawing from accounts, and possibly earning passive income on investments. This is a crucial time in any retirement journey because this is the time when you have a sense of what retirement is like. You can start to gauge what you need and what needs to change about your financial plan in order to make the most out of your retirement. This is also the time when considering medical insurance and Medicare options are both important.[1]

Phase 3: Middle Retirement (Approximately Ages 70-80)

A lot can happen financially during this phase. You may have already claimed Social Security or have reached your maximum benefit age and may not benefit from delaying your claims any further.[1] Required Minimum Distributions (RMDs) for many kinds of accounts go into effect, requiring you to withdraw from your retirement accounts if you haven’t already.[1] By now, your medical situation is likely very different than it was when you were 50, so it can be important to adjust your plan for medical expenses as well.

Phase 4: Late Retirement (Ages 80+)

This is sometimes the point when utilizing your long-term care strategy may be necessary. Estate planning and designing how you want your money to be distributed after you pass away can also be a major financial moment during this part of your retirement.


Every phase of your retirement is going to require different skills and strategies. Our professionals have worked with clients in every stage of retirement, and they can help you design a plan for whatever phase you happen to be in. Click HERE to reach out to one of our advisors today at SHP Financial for a complimentary review of your finances.


The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by Lone Beacon Media, LLC dba Lone Beacon, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. Lone Beacon Media, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.

Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC.. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product.

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