Retirement isn’t just one chapter in life. It’s a series of phases, each with its own challenges, emotions, and opportunities. The Brindle & Bay team has guided hundreds of families through every one of these phases, helping them not just plan for retirement, but to optimize it.
Let’s explore the four stages of retirement wealth. By reading on, you'll learn where you currently stand, what that means for your present-day lifestyle and future finances, and how to move forward if you're not quite where you'd like to be.
Let’s get into it.
Stage 1: Survival – The Edge of Retirement Security
This is where far too many retirees find themselves: living primarily on Social Security, with little or no personal savings to back it up.
A recent report by Western & Southern shows that Americans aged 55–66 have an average retirement savings of $256,244. But keep in mind that averages can be deceiving. Many have far less than this number, and some have none at all.
If you're in the Survival stage, you're likely:
-Covering only your most essential expenses
-Experiencing little to no flexibility for discretionary spending
-Facing anxiety over unexpected costs (a new roof, a car repair, a medical bill)
-Risking complete depletion of assets within the first 10 years of retirement
It’s not a fun place to be, but here’s the good news: if you’re seeing this now, you still have time to act. Here are three essential steps to help shift from survival to stability:
1. Do what it takes to get happier at work.
This might include cutting your work hours for the sake of extending your working years without burning out. This lengthens your runway and wins you more time to save.
2. Audit your spending
Get real about where your money goes. Cut down on debt. Build up your cash reserves. Save what you can, especially in tax-advantaged retirement accounts.
3. Maximize your Social Security.
Consider implementing strategies to delay your benefits for sake of locking in higher lifetime income, especially if you’re still relatively healthy.
Stage 2: Stretching – Living with Financial Tension
This stage isn’t dire, but it sure can be stressful. You’ve done some saving. You’ve built a life you enjoy, but deep down, you still worry: can I really afford to keep this lifestyle?
You might be in the Stretching phase if:
-You're only projected to replace 70% of your current income or less.
-You’re carrying consumer debt that won’t be paid off before retirement.
-You’re trying to make one car last for 20 years because there’s no plan to buy another.
-You dream of a second home or a new boat, but the math just doesn’t add up.
People in this phase often do one of two things: they either obsess over their money, or they ignore it entirely. Both are dangerous. The solution? Take thoughtful action.
Here’s how to start:
1. Clarify your financial story.
Get everything down on paper: income, investments, debts, expenses. Knowing your full picture is half the battle.
2.Identify your real cost of living.
Don’t just look at today, but project yourself into the future. What happens when the mortgage is paid off? When inflation kicks in?
3Make some hard choices.
You might need to work a little longer. Or scale back a few lifestyle dreams. Be sure not to see this as some kind of failure. It’s a strategy for the life you want to live.
Stage 3: Stability – The Classic Successful Retirement
This is where many retirees aspire to be, and for good reason.
In the Stability stage, you can:
-Cover all your basic living expenses.
-Afford a few nice vacations.
-Replace the grill or fix the AC without stress.
-Sleep well knowing your financial plan is working.
It’s not luxurious, but it’s comfortable. That comfort often comes from good habits formed in the five years before retirement. We’re talking budgeting, debt reduction, and prioritizing savings.
So, how much do you need to achieve stability?
Forget national averages. They don’t tell your unique story. Instead, consider this: If 4% of your savings + other income sources covers your first year of retirement expenses, you’re likely in the Stability zone.
For one person, this could mean $500,000 or $2 million. It depends on lifestyle and expectations.
So to optimize this stage, make sure you don’t ignore two huge retirement risks: healthcare and taxes. Many people under-prepare here for their healthcare needs: think Medicare, long-term care, and out-of-pocket surprises. And knowing the tax implications surrounding which account to draw from (and when) will make a big difference in how long your money lasts.
Stage 4: Abundance – From Survival to Significance
This stage is all about freedom, legacy, and impact.
Retirees in the Abundance phase often have more than enough. Their wealth continues to grow, even in retirement. But that doesn’t mean they stop planning. It just means they have different questions:
-“What do we do with these extra IRA withdrawals?”
-"Which causes do we want to support with our giving?”
-“How do we help our children and grandchildren without spoiling them?”
-“How do we lower our tax bill and preserve more for our legacy?”
Abundance isn’t tied to a specific dollar amount. For some, $1 million puts them in this category. For others, it might be $3 million or more. Try to see beyond the number, though. This is about mindset.
You know you’re in the Abundance phase when your thoughts shift from "how do I make it through?" to "how can I make a difference?"
To make the most of this stage:
-Get serious about tax strategy: Roth conversions, qualified charitable deductions, and estate planning all become more relevant.
-Design a legacy plan: One that reflects your values, not just your valuables.
So, Which Stage Are You In?
Whether you’re in Survival, Stretching, Stability, or Abundance, the most important thing is awareness. When you know where you stand, you can take steps to move forward.
If you’re ready to dig deeper and optimize your retirement no matter what phase you’re in, book a call with us by clicking here. Retirement isn’t just about getting by — it’s about living with purpose, peace, and confidence.
