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-- Updated June 2026 --
Becoming an empty nester offers a wonderful opportunity to reprioritize your finances and build a stronger foundation for your future.
enjoy your empty nest
AAA’s savings products and services can help you simplify your finances and be more confident about your money as you near your retirement.
Your children have grown up and moved out—and now you’re free to reclaim your future. The shift to an empty nest can feel emotional, but it also brings a meaningful financial turning point. With fewer day-to-day expenses and more flexibility in how you spend your time and money, this stage of life offers a chance to reassess your priorities and refocus on your long-term goals.
As an empty nester, you have the opportunity to strengthen your financial foundation, whether that means accelerating your retirement savings, reducing debt or reshaping your lifestyle to better align with what comes next.
Here are the top 4 financial opportunities to consider once the kids move out, plus 4 bonus opportunities.
According to the Brookings Institution, the estimated average cost of raising a child from birth to age 17 is more than $310,000. This means that once the kids are on their own, you can reevaluate your budget to assess how much you’re spending (or not spending), identify areas where you can cut back or spend more, and reallocate funds to new priorities.
Where will your freed-up funds go? Some logical choices include:
The U.S. Bureau of Labor Statistics reports housing is the greatest expense of raising a child. Rather than staying in a home that’s too big for you—and spending money heating and cooling rooms you won’t use—you could downsize to a smaller place.
Lower housing costs, utilities, maintenance and property taxes can free up more money to save for your future.
AAA’s exclusive webcast series, Well Worth It, is designed to help you master your finances with confidence. From personal finance and budgeting to understanding insurance and planning for the future, this series covers it all.
Watch NowThe financial demands of raising children—everything from piano lessons to college funds—may have kept you from contributing as much as you’d have liked to your retirement account. But now that you have an empty nest, it’s a smart time to ramp up your retirement savings.
Experts at Fidelity recommend saving at least 15% of pretax dollars every year for retirement. Per new IRS rules in 2026, employees can contribute up to $24,500 annually to their 401(k) plans, both Roth and traditional. If you’re over 50, you can contribute up to $32,500 annually.
A retirement planner calculator can be a helpful tool in determining your goals for a secure retirement, including factors like Social Security and other income, your age, contribution amount and expected rate of return.
Review your insurance and look for ways to save while still ensuring your coverage meets your needs. Once you’ve determined what your retirement savings needs are, consider adding a financial tool to help you reach them. Life insurance is one option that can help you meet your goals for savings, paying off debt and more.
Your risk tolerance and timeline may look different now that you aren't actively raising children. As retirement approaches, consider whether your asset allocation still aligns with your goals. A periodic rebalance can help keep your investments on track.
With children now independent, it's a good time to update your estate planning documents. Review your will, power of attorney and healthcare directives to ensure they reflect your current wishes.
If you have retirement accounts or life insurance policies, review the beneficiary designations, as these supersede your will. Your goals may have shifted to supporting grandchildren or making charitable donations—Be sure these are formalized in your documents.
Ready to downsize or repurpose your home after the kids move out? Discover practical decluttering tips, room redesign ideas and learn how you can earn AAA Dollars cash back.
See the TipsAccording to Federal Reserve Economic Data (FRED), healthcare is one of the biggest expenses in retirement, and one that's easy to underestimate. With higher insurance premiums and an increased usage of the medical system, retirees spend over 12% of their annual spending on healthcare.
Use this transition period to explore options such as supplemental or long-term care insurance. Thinking ahead now can help protect your savings later and reduce stress for you and your family.
Not every financial decision needs to be purely about saving. This is a good time to think intentionally about how you want to live during retirement. Do you want to travel? Pursue further education? Relocate to a cottage by the beach? Allocating funds toward meaningful experiences can be just as important as growing your nest egg.
By taking a thoughtful look at your budget, savings and long-term goals, you can turn this life transition into a meaningful financial opportunity. With a clear plan in place, your empty nest years can be a time to build greater security, flexibility and confidence for whatever comes next.
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Join Today!The shift to an empty nest is a great time to reevaluate your budget and reprioritize your goals. With fewer day-to-day expenses, you can direct your freed-up funds toward new financial targets. You might consider using this extra money to:
Yes, downsizing offers a smart way to strengthen your financial foundation. Housing is typically the greatest expense of raising a child. Moving to a smaller home lowers your house payment, utility bills, maintenance costs and property taxes. This allows you to put more money away for your future.
Now is the perfect time to ramp up your retirement contributions. Experts recommend saving at least 15% of your pretax dollars every year. For example, employees over 50 can contribute up to $32,500 annually to their 401(k) plans. Use a retirement calculator to easily determine how much you need based on your age, contribution amount and expected rate of return.
Absolutely. Review your insurance coverage to find ways to save while meeting your current needs. You should also rethink your investment strategy. As retirement approaches, your risk tolerance and timeline change. A periodic rebalance ensures your asset allocation aligns with your long-term goals.
With your children now independent, you should review your will, power of attorney and healthcare directives to ensure they reflect your current wishes. Update your beneficiary designations for retirement accounts and life insurance policies, as these supersede your will. If your goals have shifted to supporting grandchildren or making charitable donations, make sure you formalize these plans in your documents.
Healthcare is one of the biggest expenses in retirement. Retirees often spend over 12% of their annual budget on medical needs. Protect your savings and reduce stress for your family by exploring supplemental insurance or long-term care insurance now.
Yes! Not every financial decision has to focus on saving. This is a great time to invest in your next chapter and think intentionally about how you want to live. Allocate funds toward meaningful experiences like traveling, pursuing further education or relocating to a cottage by the beach.
enjoy your empty nest
AAA’s savings products and services can help you simplify your finances and be more confident about your money as you near your retirement.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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