A friend of mine, age 60, is considering early retirement after a long career. He has saved and invested wisely, but burnout has prompted him to think seriously about stepping back. While his financial advisor has assured him of his portfolio’s strength, the bigger questions extend beyond money — to lifestyle choices. Here are four key decisions he faced:

1. Will you continue to work in some capacity?
Working part-time or in a reduced role can delay portfolio withdrawals, extend Social Security benefits, and maintain healthcare coverage until Medicare. My friend chose a 30-hour schedule to balance income, identity, and health. For others, a full break may be necessary.

2. What lifestyle changes will you make?
Housing costs, location, and spending habits matter. My friend considered moving to a less expensive region but decided to stay put for now, as his work and social ties remain important.

Planning to retire and relocate? Consider a comprehensive strategy

3. Can you be flexible with spending?
Adapting spending when markets are down can help portfolios last longer. Flexible strategies often lead to higher lifetime spending than rigid rules like the 4% withdrawal guideline.

4. How do you weigh lifetime spending against leaving a bequest?
Some retirees want to maximize spending during their lifetime, while others prioritize leaving money behind. My friend, who has no heirs, values income he can enjoy now rather than preserving assets for later.

Source: Agency