Retirement Timeline and Spending

February 24, 2023

Retirement spending timeline refers to planning and organizing your finances during retirement. It involves determining how much money you need to save and invest during your working years to ensure that you have enough income to support your lifestyle during retirement. Here is a general timeline to consider for retirement spending:


In your 20s and 30s: Start saving and investing for retirement as soon as possible. You should aim to save 10-15 % of your income, preferably through tax-advantaged retirement accounts such as 401(k)s or IRAs.


In your 40s and 50s: Evaluate your retirement savings goals and adjust your plan accordingly. This is a critical time to ramp up your savings, take advantage of compound interest, and catch up if you fall behind.


In your early 60s: Start thinking about the type of retirement lifestyle you want and how you plan to fund it. Consider factors such as your anticipated retirement age, anticipated expenses, and any additional sources of income such as Social Security.


At retirement: Begin withdrawing from your retirement accounts strategically and taxably. This will typically involve a combination of income from Social Security, required minimum distributions from retirement accounts, and any other income sources you may have.


Throughout retirement: Monitor your spending and adjust your retirement income plan as needed. Be prepared to make changes if unexpected expenses arise or if market conditions shift.


Overall, the retirement spending timeline is an ongoing process that requires careful planning and monitoring to ensure that you have enough income to support your desired retirement lifestyle. Starting early, maximizing your savings, and making strategic investment decisions can help ensure a comfortable and financially secure retirement.