What’s your idea of a happy retirement? Maybe it’s resting. Maybe it’s traveling more, spending time with family, or finally diving into your favorite hobbies.
However you picture it, one thing is certain: you’ll want to feel confident your finances can support it. Here are some goals that can help you spend with purpose, plan ahead, and enjoy your retirement years with peace of mind.
Here’s what we’re going to cover:
- Plan how you spend your retirement money
- Get the most from Social Security
- Enjoy senior benefits
- Plan for your legacy
- Oportun: Affordable lending options designed with you in mind
Key takeaways
- Retirement is a chance to simplify, and downsizing your home or reducing transportation costs can make a big impact
- By waiting past your full retirement age to begin collecting benefits, you can get larger Social Security payments
- Retirement is the time to enjoy yourself and pursue your passions, so you should take advantage of senior discounts and benefits
- Keep your will and other documents up to date, especially after big financial changes
Plan how you spend your retirement money
Fixed costs matter more than anything in retirement because they are predictable and repeated. Have a look at your annual budget for things like rent or mortgage, insurance, utilities, streaming services, etc, to get a grasp of these fixed costs.
Not all variable costs are within your control. How much you owe in taxes each year, rate hikes, medical costs, home repairs, and inflation are things you can prepare for in retirement.
If you carry debt, strategically reduce it as quickly as possible so your precious retirement income isn’t eaten by interest payments. Prioritize the highest interest debt first to make the biggest impact, and consider refinancing or consolidating with debt products at lower rates. If you pull savings from retirement funds to pay off debt, make sure you understand how you’ll be taxed beforehand and calculate if that makes sense.
Retirement and the change in daily schedules gives you an opportunity to make some major changes to how you spend money. Getting a grasp on what you need per month, what you need to prepare for, and how you’re managing debt can help you make big financial decisions. You may find you’re ready to move into a smaller home to save money (with less to maintain), or even to a new town with lower cost of living.
Get the most from Social Security
You can start collecting Social Security between ages 62 and 70. After 70 you won’t get further increases to Social Security except for a yearly cost-of-living adjustment (COLA).
The longer you wait, the higher your monthly payments will be—up to 8% more per year. That could make a big difference depending on your fixed costs. The age you choose to begin receiving benefits will depend on many factors: what other income you have, how much money you have saved or invested, your health and life expectancy, and what your current needs are. Social Security provides a benefits calculator to help you make this decision.
Enjoy senior benefits
There are many perks to being 65 or older The IRS offers extra deductions (which means paying less in taxes!), and free tax help for seniors
Traveling? Museums, hotels, and tour companies often offer lower rates. Even close to home, you might find senior discounts at restaurants, movie theaters, and grocery stores. If you don’t see a senior rate listed, just ask!
The American Association of Retired Persons (AARP) is an excellent source of information for anyone over age 50. AARP’s publications and website cover health, finances, housing, travel, and many more topics of special interest to older adults.
Plan for your legacy
Think about what you’ll leave behind, and to who. If you have money left over, will you leave it to your partner or children or charity? If you own a home, what will become of it?
Might you carry debt? After passing, your belongings may be used to settle your debts before heirs receive anything. Some Medicaid debt can be recovered by taking possession of your home after death, if no partner or dependents live in it. In good news, children, siblings, and relatives do not inherit debt, unless they were a:
- Co-signer
- Joint account holder, or
- Spouse in a community-property state (special rules apply)
Review your will and related documents to see if they should be updated, especially if your financial situation changes.
Oportun: Affordable lending options designed with you in mind
By knowing what to expect at each stage of life, you’ve been able to plan successfully for a comfortable retirement. Your golden years can open many possibilities for aging joyfully. Whatever your passions and interests may be, this is the time to pursue them.
Here at Oportun, we want to support your financial well-being at every age. Visit our homepage to learn about:
- Personal loans
- Secured personal loans
- Savings
- And more!
Sources
CBNC. Wait until age 70 to claim Social Security: “The return on being patient is huge,” says economist
Charles Schwab. Guide on taking Social Security: 62 vs. 67 vs. 70
Social Security Administration. Social Security quick calculator
IRS. Tips for seniors in preparing their taxes
Senior Living. Senior discounts in 2025
American Association of Retired Persons. What is AARP and how does it help older Americans?
