Ready to Retire? Make Sure You Have a Plan First

Written by Ashley Mills, April 2025

Retirement is one of the biggest financial transitions you’ll ever make. Before you hand in your notice, it's essential to have a clear, personalized financial plan that shows how your money will support you for the long haul.

Here’s why planning before retirement makes all the difference:

1. Know What Retirement Will Cost

A financial plan helps you estimate your retirement expenses—everything from health care and travel to day-to-day living costs. It’s not just about what you have saved—it's about how far that money will go, and ensuring it’s enough to carry you through your entire life. For example, if you retire at 65 and live to 95 – your money will need to last through 30 years of retirement!

2. Create a Reliable Income Strategy

Once you’re no longer receiving a paycheck, your investments need to work for you. A retirement income plan outlines:

• When and how to take withdrawals

• Which accounts to draw from first

• How to minimize taxes along the way

This strategy can help work toward making sure your money lasts throughout retirement—and give you confidence.

3. Optimize Your Social Security Benefits

The timing of when you claim Social Security can significantly affect the amount you receive. A financial plan can model different scenarios to help you:

• Decide whether to claim early or delay benefits

• Coordinate with a spouse’s benefits

• Understand how your benefits might be taxed

Strategic planning could potentially mean thousands more in benefits over your lifetime.

4. Prepare for the “What Ifs”

What happens if the market dips? Or if you need long-term care? A good financial plan builds in flexibility for life’s surprises, and stress-tests your retirement income under different conditions.

5. Feel Confident About Your Decision

Ultimately, a financial plan isn’t just about numbers—it’s about clarity. It answers the big questions:

• Can I afford to retire?

• Will I run out of money?

• How can I make the most of what I’ve worked so hard to build?

Let’s Plan Your Retirement, Together

Whether you’re a few years out or ready to set a retirement date, work with a River Birch advisor to create a personalized plan that helps put you in control of your future.