Back To Insights

Good Retirement Plans Come in Threes

Sep 15, 2020

Retirement is a big transition. What many financial advisors and retirees don’t realize is that retirement is actually made up of multiple transitions. At Charles Stephen, we recognize the importance of planning for each of these three stages. We call them Go-go, Slow-go, and No-go.



The average age of retirement in the US is about 63 for women and 65 for men, ages when most people are still very active and eager to experience the things they didn’t have time to when they were working. We call this the “Go-go” stage, a period of time when retirees travel often, spending money on big vacations and leisure activities, and readily paying for comforts like direct flights, taxis and escape from cold winter weather. At this stage, retirees most likely don’t have dependents, and are more financially stable.



Following the initial years of retirement, people tend to slow down, as the name of this stage suggests. As the novelty of retirement wears off, activity levels begin to wane and leisure activities become more relaxed, less strenuous, and also less frequent. Instead of touring Italy, for example, one might opt for a 3-day cruise or a stay at an all-inclusive resort. At this stage, less money is spent on leisure expenses than people in the Go-go stage. People in their 70s spend an average of $1,000 less per year on leisure and entertainment than individuals in their late 60s.



Later in life, priorities change, both for retirees and their families. Instead of grandparents traveling to see their grandchildren, grandparents are visited by their loved ones. Spending tends to shift to less extravagant purchases and the average person needs significantly less money at this stage. Many people prioritize saving for their children and grandchildren over spending on themselves. One study showed that the average decrease in total expenses between ages 65-74 and 85+ is almost $12,000. This isn’t to say that older retirees stop enjoying the fruits of life. No-go merely describes their rate of spending at this age.


When thinking about life after your career, it’s important to take into account these three stages, your lifestyle in each, and to plan accordingly. At Charles Stephen, we make sure you’re prepared not just for retirement, but every transition you’ll experience within it.


Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Charles Stephen & Company is not affiliated with Kestra IS or Kestra AS.

We provide this Regulation Best Interest Disclosure (the Reg BI Disclosure) to our retail customers to inform them about the services we offer and our relationship with them. Among other things, this Reg BI Disclosure addresses the scope and terms of our relationship with you, the capacity in which we are acting, the type and scope of our services, any material limitations on our services, the fees and costs associated with your holdings, accounts, and transactions, and the conflicts of interest that exist for us and our financial professionals.