6 tips for retirement planning
Retirement can sound like a dream — no more work and plenty of time to do what you love. To help ensure that your retirement truly is dreamy, it’s wise to plan ahead, whether it’s right around the corner or still years away. Here are a few tips to help you plan.
1. Plan for more than your finances in retirement
You’ll spend 10, 20, or 30 years saving for your retirement. It’s likely one of the largest financial endeavors of your life. But don’t let your financial concerns overshadow the personal planning that needs to take place. When you picture your ideal retirement, what does it look like? Do you want to travel, stick close to home, or spend more time with loved ones? Do you want to volunteer or master a new skill?
It’s also just as important to plan for managing your relationships with others. If you’re married, you’ll have more time than ever before with your spouse. If you’re leaving a career with high levels of personal interaction, you may want avenues for new relationships in retirement, such as volunteering or mentoring. Once you have an idea of what you want your future to look like, you’ll be in a better position to plan financially for your desired lifestyle. Your savings may help shape your retirement plan, but you decide how to fill your time.
2. Find a retirement style that suits you
Retirement isn’t an all-or-nothing game. You don’t have to trade your career for 24/7 rest and relaxation. If you choose to continue working in some form throughout your retirement, you’re not alone. One in eight current retirees are considering returning to work.1 And while needing more money is the top reason, how much money you’ll actually need in retirement depends on how you want to live. If you plan to travel or assist adult children financially, for example, you may need more income. But finances aren’t the only reason to continue working — many retirees work for social interaction or the opportunity to pursue a new interest. Full-time, part-time, and consulting roles are all options.
3. Budget for more than you think you’ll need
The average retiree can expect to spend around 20 years or more in retirement.2 It’s easy to assume that you’ll have the discipline to live within a budget in these golden years. But the truth is, there may be just as many interests competing for your attention and spending power. Research shows that Americans’ top 3 financial stressors are related to having enough money in retirement, with 69% of people saying they regret not starting to save for retirement sooner.3
Even in retirement, you’ll face decisions about how to spend your money. Will you dole out generous birthday gifts to grandchildren? What if there’s a medical emergency? And don’t forget to factor in inflation: what $1,000 can buy in the first year of your retirement may be a lot more than what it can buy 20 years later. So, take the time now to look at your monthly expenses and itemize the essentials to get a baseline idea of how much money you’ll need to have set aside to meet your average monthly costs in retirement.
4. Consider investments as a source of income
If you’re looking for a source of income without working, you might’ve thought you could depend on Social Security. Today, Social Security accounts for about 31% of the income the average American receives in retirement.4 Many worry this may not even be enough to cover basic living expenses.5 Even if it was enough, the Social Security system’s trust fund is estimated to run out by 2033.6 So in addition to Social Security, consider investments as a source of income.
Your investments may become more conservative as you get closer to retirement, but keeping a diversified investment portfolio can help your money grow at a rate that outpaces inflation. Consider these five sources of income: pensions, bonds, CDs, annuities, and whole life insurance.7 If your employer offers a 401(k) plan (especially one that matches some of your contributions), you should consider contributing a percentage or fixed dollar amount of your salary into the plan. Alternatively, if you don’t have a company-sponsored 401(k), you can save through a traditional or Roth IRA. And depending on your risk tolerance, you can even consider investing in stocks.
5. Budget for your health
Your health is a primary determinant of how much you’ll enjoy your retirement years. And you can start preparing for a healthy retirement now — both in terms of fitness and savings. Fidelity estimates that an individual who retired in 2024 may need $165,000 to pay medical expenses throughout retirement.8 Yes, Medicare coverage kicks in at age 65, but, on average, it pays less than half of your medical bills. So don’t wait to prioritize your health, and when you’re making your retirement budget, be sure to account for health care costs to set you up for a more enjoyable retirement.
6. Work with a financial professional
Research shows that more than half (55%) of people who feel “exactly on track” for retirement work with a financial professional.9 And your relationship with a financial professional, like me, should extend well beyond your target retirement date. I can continue to work with you throughout your retirement years, giving you recommendations for maintaining healthy spending habits, as well as identifying your income needs and investment risk tolerance. I can also evaluate and rebalance your investments to ensure they’re fit for your situation at every stage.
Disclaimer:
1 1 in 8 Retirees Plan To Go Back To Work in 2025, Resume Builder, September 12, 2024, https://www.resumebuilder.com/1-in-8-retirees-plan-to-go-back-to-work-in-2025/
2 Planning to Retire in 2025: A complete Guide, The Motley Fool, May 6, 2025, https://www.fool.com/retirement/complete-guide/
3 Mind, Body, and Wallet® 14th Annual Workplace Benefits Study, Guardian, 2025, https://www.guardianlife.com/reports/mind-body-wallet
4 Fact Sheet Social Security, SSA.gov, 2025, https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
5 Serah Louis, Social Security benefits are going up in 2024 — but over half of older Americans worry their retirement income still won’t be enough to cover essentials. Here’s what experts say must change, Moneywise, October 26, 2023, https://moneywise.com/retirement/over-half-of-older-americans-worry-retirement-income-wont-be-enough
6 Donna Levalley, Elaine Silbestrini, When Will Social Security Run Out of Money? And Medicare?, Kiplinger, July 8, 2025, https://www.kiplinger.com/retirement/social-security/when-will-social-security-and-medicare-trust-funds-run-out-of-money
7 Annuity and whole life insurance guarantees are backed exclusively by the strength and claims-paying ability of the issuing insurance company.
8 How to plan for rising health care costs, Fidelity, August 12, 2024, https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
9 Mind, Body, and Wallet® 14th Annual Workplace Benefits Study, Guardian, 2025, https://www.guardianlife.com/reports/mind-body-wallet
This material is intended for general public use. By providing this content, The Guardian Life Insurance Company of America, and their affiliates and subsidiaries are not undertaking to provide advice or recommendations for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation
The Guardian Life Insurance Company of America®, New York, NY.
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