Life doesn’t slow down just because you’re nearing retirement. In fact, for many, the years leading up to and just after retirement are filled with some of life’s biggest transitions—downsizing, relocating, dealing with aging parents, becoming a grandparent, or even navigating a divorce or inheritance.
Each of these shifts brings not only emotional changes, but financial ones, too. And without the right plan, even the most financially prepared people can feel uncertain.
Here’s how to approach life transitions with clarity, confidence, and a financial plan that adjusts with you.
1. Recognize the Transition Moment
According to the Pew Research Center, nearly 10,000 Baby Boomers reach retirement age every day. But retirement is rarely the only change happening. A recent Charles Schwab survey found that 42% of Americans over age 55 reported experiencing a major life event in the last 12 months that impacted their financial situation.
That could include:
- Leaving the workforce (planned or early retirement)
- Selling a family home or downsizing
- Caring for a spouse or elderly parent
- Starting Social Security
- Facing unexpected health costs
- Inheriting assets
These aren’t just logistical changes—they often shift your entire financial outlook. That’s why awareness is step one: know when a “life change” needs to become a “financial strategy adjustment.”
2. Reevaluate Your Financial Goals and Risk Tolerance
Your goals at 45 likely won’t be the same as they are at 65. Yet many people haven’t updated their financial plans in years. Morningstar research highlights that too many retirees stick with either too-aggressive or too-conservative portfolios based on outdated goals.
Use transitional moments as a reset:
- Has your timeline changed?
- Are your expenses going up—or down?
- Do you want to gift more to family or charity?
- Are you more risk-averse than you used to be?
Your financial plan should evolve as your priorities do. It’s not about chasing returns—it’s about aligning your money with what matters most right now.
3. Protect Your Income and Manage Taxes
A major transition is a great time to review where your income will come from and how it’s taxed. For example:
- Starting withdrawals from retirement accounts could bump you into a higher tax bracket.
- Selling a home may come with capital gains implications.
- Inheriting an IRA could trigger required distributions.
- Delaying Social Security may mean relying on your portfolio for longer.
According to Fidelity, understanding the sequencing of withdrawals (from taxable, tax-deferred, and Roth accounts) can help retirees reduce taxes and extend the life of their savings.
4. Revisit Your Estate and Legacy Plan
Life transitions often change your family structure. If you’ve recently gone through a divorce, remarriage, or have new grandchildren, it’s time to review:
- Your will and beneficiaries
- Powers of attorney and health directives
- Gifting strategies
- Trusts or estate planning documents
Neglecting to update these documents is a common oversight—yet it can have long-term consequences for your family and your legacy.
5. Take Time to Reflect—Then Act with Support
Transitions can be emotional. And money can bring up fear, guilt, or overwhelm—especially if your identity is shifting, too. It’s okay to pause, reflect, and ask for help.
The key is not going it alone.
At Connect Wealth, we walk with you through these changes—not just as financial experts, but as partners who care about your full picture. Whether you’re stepping into retirement, recovering from a life loss, or planning what comes next, we’ll help you adjust your plan with compassion and clarity.
Ready to Reassess? Let’s Talk.
Schedule a free conversation and take the first step toward a financial plan that fits your life—wherever it’s headed next.