Whether retirement is a distant milestone or just around the corner, the decisions you make today can dramatically shape your future. We believe having a plan in place is critical to finding financial security, peace of mind, and the freedom to enjoy your later years on your terms.
But why is retirement planning so important? Simply put, it’s the foundation for a clear and confident future—something everyone deserves.
The Consequences of Not Planning
One of the biggest financial risks1 people face during retirement is outliving their income. Too often, individuals assume they’ll figure out how to finance their retirement later, only to find that later arrives faster than expected—and without enough savings, structure, or support in place.
Here’s what can happen when retirement planning is neglected:
- Outliving your savings: With people living longer, your retirement may last more than twenty years2. Without proper planning, your savings may run dry far too soon.
- Overreliance on Social Security: For most retirees, Social Security alone isn’t enough to cover basic living expenses3, let alone healthcare or travel.
- Delayed retirement: Without savings, you may find yourself working longer than you intended or are able.
- Increased stress and anxiety: Uncertainty about your financial future can take a major emotional toll during what should be a time of rest and enjoyment.
- Missed opportunities for tax efficiency: Failing to plan may lead to higher tax bills in retirement.
These are not scare tactics — they’re common, real-world outcomes that can often be avoided with proactive planning. The good news is that there are plenty of ways to prepare for retirement, so you don’t have to worry as much about financial uncertainties.
Key Benefits of Retirement Planning
On the flip side, having a clear, well-thought-out retirement plan brings a host of benefits that can enhance every stage of life.
| Benefit | Description |
| Having a Financial Plan | Planning can help provide savings and income to maintain your lifestyle during your retirement. |
| Healthcare Preparation | Accounts for rising healthcare costs and potential long-term care needs. |
| Tax Efficiency | Helps you structure savings and withdrawals to optimize tax efficient opportunities. |
| Legacy Planning | Can help you provide for loved ones or charitable causes. |
| Confidence | A well-constructed plan may help you focus on personal priorities, with the understanding that circumstances can change. |
A good retirement plan not only prepares you for the practical aspects—like income and healthcare — but is also designed to support your dreams, whether that’s traveling the world, moving closer to family, or pursuing a long-postponed passion.
What Does a Good Retirement Plan Include?
You don’t need to be a financial expert to build a solid retirement plan, but it helps to understand the key components that go into one. Here’s what a well-rounded retirement strategy typically covers:
- Savings Goals: How much you need based on your desired retirement age and lifestyle.
- Retirement Accounts: Utilization of IRAs, 401(k)s, Roth accounts, and pensions.
- Investment Strategy: A diversified portfolio that balances growth with risk management.
- Income Planning: How you’ll replace your paycheck with steady income in retirement.
- Social Security Timing: Choosing the right time to begin benefits to help optimize the value of them.
- Healthcare Coverage: Medicare planning, supplemental insurance, and long-term care planning.
- Estate Planning: In coordination with your estate documents, the financial plan represents your wishes for assets you would like to use to leave a financial legacy.
Questions to Ask Yourself as You Plan
To start thinking more seriously about your retirement needs, ask yourself these five questions:
- When do I want to retire, and what will my lifestyle look like?
- What sources of income will I have in retirement?
- Am I saving enough right now? If not, how can I increase my savings?
- Do I understand how taxes and healthcare will affect my retirement?
- Have I accounted for inflation and unexpected expenses?
Answering these questions will help you uncover any gaps in your current approach and identify where professional guidance might be valuable. You only retire once — why leave something so important to chance? At Vantage Point Financial, we specialize in helping people create customized retirement plans that align with their goals, values, and vision for the future so they can live retirement boldly on their terms.
Whether you’re just getting started or need a second opinion on your current plan, our experienced advisors are here to help. Contact us today to take the first step toward a confident, secure retirement.
Citations:
1. Money.com, July 18, 2022
2. Kiplinger.com, April 25, 2025
3. Bankrate.com, March 5, 2025
Investment advisory services are offered through Vantage Point Financial, a registered investment adviser. Registration with any regulatory body does not imply any particular level of skill. This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Working with a financial planner does not ensure financial success or prevent loss. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The scenarios presented are hypothetical and are intended for illustrative purposes only. They do not reflect actual client results and are not guarantees of future outcomes. Individual results will vary. Certain financial strategies may offer tax advantages, but outcomes depend on individual circumstances and are subject to change due to tax laws and other external factors. Vantage Point Financial does not provide legal or tax advice. Consult a tax professional. Retirement outcomes depend on a variety of factors, including individual savings behavior, market performance, health events, and other considerations. Certain statements herein may reflect the firm’s current views, expectations, or beliefs, which are subject to change without notice. For additional information about our services, fees, and disclosures, please refer to our Form ADV Part 2A, available at https://vantage-point.mwdevsite.com or upon request at no cost.
