The “Go-Go, Slow-Go, No-Go” Phases of Retirement Spending

Retirement is often imagined as one long, relaxing vacation. But in reality, it’s a dynamic journey that evolves over time—and so do your expenses. Understanding the “Go-Go, Slow-Go, No-Go” phases of retirement spending can help you make better financial decisions, avoid common pitfalls, and enjoy your golden years with peace of mind.

Whether you’re just starting retirement or are already a few years in, this guide will walk you through what to expect financially at each stage and how to prepare smartly.

What Are the “Go-Go, Slow-Go, No-Go” Phases?

This three-phase model was coined by financial advisor Michael Stein to describe how retirees’ lifestyles and spending patterns typically change with age. Here’s a quick breakdown:

• Go-Go Years (roughly age 60–75): Active lifestyle, travel, hobbies, new experiences.
• Slow-Go Years (around age 75–85): Activities and travel begin to taper off; more focus on home life and health.
• No-Go Years (age 85 and beyond): Reduced mobility and increased health care needs often define this phase.

Let’s dive deeper into each phase and explore how retirement spending shifts along the way.

Phase One: The Go-Go Years – Living the Dream

Retirement Spending Peaks

In the Go-Go years, most retirees are in good health, full of energy, and ready to enjoy the freedom they’ve worked decades to earn. This is when retirement feels the most like a vacation. You may find yourself traveling more often, trying new hobbies, or even downsizing and relocating to a dream destination.

Common Expenses:

• Travel (domestic and international)
• Dining out and entertainment
• New hobbies like golfing, painting, or gardening
• Home remodeling or moving expenses
• Gifting to children and grandchildren

Spending Tip:
Create a bucket list and budget accordingly. It’s easy to overspend in the excitement of new freedom. Make sure your withdrawals from savings and Social Security benefits stay within a sustainable range. Financial advisors often recommend the “4% rule” as a starting point—withdraw 4% of your savings each year to avoid outliving your nest egg.

Phase Two: The Slow-Go Years – A Gradual Shift

Retirement Spending Declines Slightly

Around the mid-70s, many retirees begin to notice subtle changes. You may still travel, but shorter trips become preferable to long adventures. You might go out less often or cut back on activities due to energy levels or health limitations.

Common Expenses:

• Healthcare begins to rise (medications, specialist visits)
• Home maintenance becomes more important as you spend more time indoors
• Fewer entertainment and travel expenses
• Support services like housekeeping or transportation assistance

Spending Tip:
Now’s the time to review your Medicare plans and consider long-term care insurance if you haven’t already. Even if you’re in good health, the cost of preventive care, dental visits, and prescriptions tends to rise in this phase. Align your retirement spending with your evolving lifestyle—shift from luxury to comfort.

Phase Three: The No-Go Years – Focus on Care and Comfort

Retirement Spending May Rise Again

In the No-Go years, physical limitations or chronic illness may reduce your ability to live independently. While lifestyle-related spending tends to drop, medical and long-term care costs often rise substantially.

Common Expenses:

• In-home caregiving or assisted living facilities
• Nursing homes or memory care if needed
• Mobility aids (wheelchairs, stair lifts, etc.)
• Personal and home safety modifications

Spending Tip:
Long-term care can be expensive. According to Genworth’s Cost of Care Survey, the average cost of a private room in a nursing home in the U.S. is over $100,000 per year. Plan early for these possibilities by earmarking funds or using tools like annuities or health savings accounts (HSAs).

Why Understanding These Phases Matters

Planning for retirement spending in a one-size-fits-all approach simply doesn’t work. By breaking it down into Go-Go, Slow-Go, and No-Go phases, you can tailor your financial plan to your actual lifestyle and needs. This phased approach helps you:

• Prioritize spending when it brings the most joy and value
• Avoid depleting savings too early
• Anticipate rising healthcare needs
• Preserve dignity and independence in later years

Think of it as a roadmap: each phase presents different opportunities and challenges, and being aware of them ahead of time is like turning on your high beams on a dark road.

Creating a Flexible Retirement Spending Plan

A successful retirement strategy accounts for the ups and downs of each phase. Here are a few practical ways to make your plan adaptable and resilient:

1. Build a Tiered Budget

Structure your retirement spending plan into three “buckets” aligned with the Go-Go, Slow-Go, and No-Go phases. Consider:

• Bucket 1 (Early Years): Enjoyment and discretionary spending.
• Bucket 2 (Mid Years): Routine living costs and some health care.
• Bucket 3 (Later Years): Medical and care-related expenses.

2. Invest with a Timeline in Mind

Your investment strategy should reflect when you’ll need the money. Early retirement may benefit from a slightly more aggressive portfolio, while later years demand security and liquidity.

3. Plan for Healthcare Costs Separately

Health care is one of the largest unknowns in retirement. Consider setting aside a dedicated account for medical expenses and exploring supplemental Medicare plans that offer additional coverage.

4. Consider Downsizing Strategically

In the Slow-Go years, many seniors downsize their homes not only to cut costs but also to reduce maintenance needs. This can free up equity to bolster your healthcare fund or support legacy goals like helping grandchildren with college tuition.

Emotional and Lifestyle Considerations

Retirement isn’t just about money—it’s also a deeply emotional transition. As you move through these phases, your sense of purpose, relationships, and living environment play a big role in well-being.

• Stay connected: Social ties reduce loneliness and improve health outcomes.
• Embrace purpose: Volunteering or mentoring gives life deeper meaning in all retirement stages.
• Maintain routine: Even during the No-Go phase, having a daily rhythm can improve mental and physical health.

Mistakes to Avoid at Every Phase

Even well-prepared retirees can make missteps. Here are some of the most common pitfalls—and how to avoid them.

In the Go-Go Years:

• Overspending in the first decade
• Neglecting future healthcare costs
• Withdrawing from retirement accounts without tax planning

In the Slow-Go Years:

• Not updating estate plans or beneficiary designations
• Overlooking inflation’s effect on fixed income
• Avoiding discussions about future care needs

In the No-Go Years:

• Ignoring signs that more care is needed
• Relying too heavily on family without support
• Waiting too long to downsize or make home safer

FAQs

Q: How much money should I plan to spend in each retirement phase?
There’s no exact figure, but studies suggest most retirees spend more in the first 10 years, level off, and then potentially increase expenses again due to medical needs. A phased plan helps you manage this curve effectively.

Q: Is it okay to spend more in the Go-Go years?
Yes, if your plan supports it. Just ensure you aren’t withdrawing too much too soon. A good rule is to plan for 20–25 years of retirement and adjust spending accordingly.

Q: What happens if I live longer than expected?
Longevity risk is real. Consider annuities or pensions that offer lifetime income. Also, maintaining a conservative withdrawal rate and keeping part of your portfolio growing with inflation helps mitigate this risk.

Q: Should I downsize early or wait?
It depends on your lifestyle. Downsizing early can free up resources for travel and fun, but waiting may help if you’re emotionally attached to your home or community. Evaluate costs and logistics for both options.

Q: When should I talk to my family about care planning?
The sooner, the better. Clear communication ensures your wishes are known, and loved ones are prepared. Don’t wait until a health crisis to begin these important conversations.

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