The three phases of retirement are often referred to as the Go-Go Phase, Slow-Go Phase and No-Go Phase. This framework helps anticipate how your spending and activity levels are likely to change over time.

Go-Go Phase: This is the early, active, and most expensive phase of retirement. It occurs when the retiree is between 65 and 75 years of age. This is when many retirees are in good health and want to travel, pursue expensive hobbies, and embark on new adventures (i.e. starting a business). This is the time retirees check off bucket-list activities. The Go-Go years are most anticipated when completing a retirement plan and are viewed with excitement.

Slow-Go Phase: This transitional phase typically begins in your mid-70s, as your lifestyle and energy levels start to slow. In this phase, activity levels decrease, and travel may shift from international trips to more local or domestic excursions. Overall spending generally decreases, however, cost-of-living increases due to inflation. I find when working with clients, they are reluctant to recognize the slow-go phase as if it won’t happen.

No-Go Phase: The third phase (mid 80s to 90s) which again is often not recognized and in some cases, dismissed. This final phase involves a significant decline in physical and cognitive abilities. During the No-Go phase, retirees may require support from family, caregivers, or assisted living facilities. Healthcare expenses typically increase, and estate plans and end-of-life arrangements are in order.

In any retirement planning, it is important to not only create a realistic vision and plan for the Go-Go years, but to recognize that one’s plan should give thought to the Slow-Go and No-Go years.

When participating in your retirement planning process, I urge you to take a proactive interest in all three phases. This means viewing your lifestyle, spending and finances in a critical way to reflect your Go-Go, Slow-Go, and No-Go years. Talk to your financial advisor about the three phases and steps to be taken. When working with your retirement coach or mentor, again, don’t forget to address the three phases – they are apart of life.