Financial Planning for Retirees: How to Stay Flexible and Confident in Retirement

Article overview

• Retirement financial planning is essential for managing changing income, evolving expenses and planning longevity, ensuring savings last throughout retirement.
• Key strategies include creating a retirement budget, building an emergency fund, diversifying income streams, and prioritizing financial stability while balancing generosity.
• Professional advisors can help with withdrawal strategies, tax impacts and personalized plans for adjusting to unexpected costs and long-term goals.

This article is the fifth in the Financial Planning for Every Stage of Life series.

Financial planning for retirement doesn’t end the day you stop working. It often becomes more important as your income changes and expenses evolve. Whether you’re reviewing your savings, adjusting to a fixed income, or thinking about the years ahead, there are steps you can take to move forward with more clarity.

Retirement isn’t one-size-fits-all. A retirement financial plan that reflects your budget, health and goals can help ensure you have the savings to last through this next stage of life.

You’re wondering if you’ve saved enough

Many people reach retirement and still have questions about whether they’ve saved enough. The truth is, there’s no single number that works for everyone. In 2025, Americans estimate they’ll need approximately $1.26 million to feel financially ready for retirement, but what matters more is how your income supports your lifestyle.

A good baseline for retirement planning and decision-making is to start by reviewing your numbers. A retirement plan built around real numbers can help identify where to adjust spending, shift savings or supplement income.

Check your current sources of income from your job (if still working), estimated Social Security and pension, and planned withdrawals from retirement accounts. Compare these to your fixed and flexible monthly expenses. Then look at what’s left over and if it can cover the unexpected. 

You’re adjusting to a fixed income

Even with savings and Social Security or a pension, shifting to a fixed income can feel restrictive, especially if you’re used to more flexibility in your cash flow. While your bills might not change, the way you manage cash flow might need to shift.

Try treating your retirement income just like you did your paycheck, and align it with your new budget. Also, consider building your emergency fund to a few months of expenses. That buffer means you may not need to use your credit cards, sell investments or borrow if something unexpected happens.

If you’re looking for ways to stay busy or supplement your income, even a few hours a week of part-time or freelance work can help add flexibility to your budget. You could save that money for extras—vacations, hobbies or gifts for the grandkids. Some retirees also use an annuity to create a steady income stream, which can help with budgeting and reduce the pressure on other savings.

You’re trying to build a plan in retirement

Approximately 80% of retirees report having at least one form of private income in addition to Social Security benefits. However, even with multiple income sources, switching from a steady paycheck to a fixed monthly budget may take some time getting used to.

If you’ve never created a written plan, or if the one you had no longer fits your situation, start by gathering all your financial information in one place. Look at how your spending, savings and income streams interact. If you’re dipping into savings more than expected, getting organized can help you spot gaps and pinpoint where to focus.

Once you have your snapshot, use it to make key decisions such as which accounts to withdraw from first, how much to pull each month, and how to plan for larger, less predictable costs like medical bills or home repairs. Retirement financial planning can help coordinate these moving parts so you’re not guessing every time you need to move money.

You’re trying to plan for longevity

Living longer means your money must last longer as well. In 2025, the average American is expected to spend around 20 years in retirement—more than previous generations. That’s more years to cover daily costs, rising healthcare bills and the impact of inflation on your savings.

Consider your numbers. For example, if you’re withdrawing $3,000 a month, how long will your savings last at that pace? What if you live five or 10 years longer than expected, or you’re hit with surprise expenses? Online calculators can help you decide if you should reduce withdrawals, delay Social Security or take on a part-time job.

You can also build in protection for bigger costs down the road. For instance, set aside a reserve fund for long-term care or future health expenses and adjust it yearly as needed.

You’re balancing generosity with financial stability

Many retirees want to help their families, but that generosity can come with tradeoffs. A 2025 Morningstar report found that 96% of grandparents provide some form of financial assistance to their grandchildren. This may include small gifts or help with tuition and phone bills. However, for 10% of grandparents, it’s more than $10,000 a year.

If you’re providing regular support, treat it like a fixed item in your budget. Track how much you’ve given over the past year and see whether it’s cutting into your income and savings goals. If it starts to stretch your resources, consider setting a clear annual limit or shifting to non-cash assistance, such as time and advice.

Being thoughtful with those you love is important, but your kids and grandkids have a much longer time horizon to save than you. Giving within your means helps protect your financial future.

You’re not sure when to ask for help

It’s not uncommon to wait until a problem arises, such as a tax surprise, an unexpected medical expense or a market dip that disrupts savings, before seeking help. However, working with someone who can provide financial advice for retirement planning can make tough decisions and situations easier to navigate.

Consider meeting with a financial planning retirement planner if you’re not sure how to coordinate withdrawals across accounts, how taxes could impact your income strategy, or if you’re taking on too much (or too little) investment risk.

Retirement planning financial advisors can also provide personalized advice that aligns with your specific goals and timeline. That can mean reviewing your withdrawal strategy, determining when to take Social Security, or helping you update a plan that no longer suits your needs.

Move forward with confidence

Your budget, income and needs will continue to change in retirement. Review your spending, how long your money might last, and whether your plan still fits.

Adjust as needed, whether that involves revisiting withdrawals, setting limits on family support, or updating your approach to handling unexpected costs. Ongoing financial planning and retirement planning can help you stay ahead of these shifts.