As John Lennon is often credited as having said, “Life is what happens when you’re busy making other plans.” Nowhere is that axiom truer than in retirement. While planning is essential, we have to remember that living well is the point. There comes a time when we need to be less obsessed with the details of our plans and more focused on the life that those plans enable us to enjoy. 

That was our first thought as we read  this fun and insightful article from Kiplinger. We love a good analogy, and in this article reporter Jacob Schroeder gives us a simple one that makes a lot of sense. Schroeder uses the popular image of a vinyl record album to make his point: think of the phases of retirement like two sides of your favorite LP. (Kids, ask your grandparents what that term means.)  

In this word picture, Side A has all the high-energy hits, while Side B is more mellow and reflective. Could it be that Schroeder’s “Vinyl Rule” provides a down-to-earth view of the two complementary phases of retirement? Let’s take a look and see if this metaphor resonates. 

A Valuable Retirement Lesson in That Old Record Collection 

“Bust out the record collection,” Schroeder quips. “Not only might it be worth something, there’s a valuable retirement lesson in there, too.” 

Cultural nostalgia is on the rise, he says: “Since 2008, vinyl has made a serious comeback. How big? In 2022, vinyl outsold CDs for the first time since 1987, racking up more than $1 billion in sales. […] And that’s not the only thing people are nostalgic for these days.” 

People Long for Simpler, More Predictable Times 

As an example: for many workers, the era of pensions is something they would happily go back in time for. In fact, a recent Nuveen and TIAA Institute survey tells us that 93 percent of 401(k) plan participants said that it’s important to have the option to convert their savings into guaranteed monthly income. A further two-thirds said that this option would make them feel “more confident” about retirement. 

“The survey highlights one of the biggest challenges in retirement: figuring out how to turn your savings into a steady income stream, so you can enjoy life today without losing sleep about tomorrow,” Schroeder writes.  

Like a Long-Play Record, Retirement Has Two Distinct Sides 

This leads neatly into what Schroeder calls “the vinyl rule of retirement.”  

He writes, “Much like a vinyl record, retirement for most has two distinct sides. It starts with high energy, then flips to something slower — each with its own rhythm, needs and funding decisions.” 

It’s crucial to understand what retirement really looks like, he says. It’s not “one continuous groove.” Instead, you should plan to make the most of the high-energy early years while you prepare for the “slower, care-focused side” that comes next.  

Side A: The First Decade – More Active, Adventurous 

According to an Allianz survey, the top aspirations most people have for retirement are to “pursue new hobbies” and “find new adventures.” Following the “vinyl rule”, these aspirations happen during the first decade, on Side A. 

“This is when people check off the bucket-list items they’ve been dreaming about their whole lives,” says financial planner Jacob Martin with Keeler & Nadler Family Wealth. “I often see clients move to a new city, travel the world and generally make the most of their physical health while they still can.” 

Schroeder elaborates, “Spending tends to reflect that burst of activity. JP Morgan research shows that Americans with $1-3 million in investable assets typically hit their peak spending years in midlife and into early retirement, but often see a dip before spending rises again later in life due to health care needs.” 

Household Spending Shifts Dramatically Throughout Retirement 

The Kiplinger article included a chart that vividly demonstrated how household spending shifts during the retirement years.  The chart, taken from the JP Morgan Guide to Retirement, 2025, shows annual spending over time for households with investable wealth ranging between $1 million and $3 million. Obviously, the dollar amounts will be less for middle-income households, but the overall spending patterns should be similar. 

The graph tracks 10 spending categories: travel, apparel, entertainment, transportation, food and beverage, education, housing (including mortgage), charitable giving, health care, and other. We can’t reproduce the chart here on the Blog, but we can briefly summarize the results.  

The most obvious take-away is that overall household spending per year for these respondents declines significantly over time, averaging $125,380 at age 60, $104,470 at age 70, and $90,590 at age 80. But it’s also interesting to note how the various spending categories change.  

For the average retiree in the survey, spending on travel, apparel, and entertainment stays fairly steady from age 60 to age 70 but then declines dramatically. Transportation costs also decline but more slowly, as do housing costs. The biggest movement – and it should be no surprise – is in health care, where average costs rise steadily from age 50 onward. The annual cost of health care roughly doubles from age 60 to age 80. 

It’s Important to Embrace the “Side A” Years of Retirement 

This is why financial planner Martin encourages clients to embrace the early phase. “Some retirees hold back, thinking they’ll spend more later. But this is the decade to really live. Spending more from 65 to 75 often works just fine since costs usually drop later.” 

He adds, “Set up a regular withdrawal from your investments, like a paycheck, to create a sense of consistent cash flow so you feel confident spending on the things you care about.” 

Ralph White, principal and financial planner at Arrivity Financial Planning, breaks this down even further by suggesting that clients create separate pools of money for different goals: the first is a traditional retirement portfolio invested in a diversified mix of stocks, bonds and two years’ worth of cash reserves for steady spending needs. 

Then, do something similar for your active retirement years. “Since this is such a finite period of time, I don’t want market downturns to impact this because you can’t get this time back,” he says. “I recommend setting aside funds that are available specifically for travel or other fun activities, ideally in a separate savings or conservatively invested brokerage account.” 

Retirees Experience a Gradual Shift as the Tempo Slows 

But, as Schroeder’s theory goes, the tempo will eventually slow. “There’s a gradual shift in retirement, moving from adventure and activity to a quieter, more reflective rhythm. This transition can stem from changes in health, evolving priorities or the reality of a shrinking budget,” he writes.  

Martin says that this “slower phase” seems to show up between ages 75 and 85. “This is when I start to see health become a limiting factor,” he says. “Big trips and active pursuits become harder to manage. Even if outside care isn’t yet needed, spending tends to drop and bottom out around age 80.” 

Most of Us Lose Body Strength More Rapidly as We Age 

According to Schroeder, this shift is rooted in biology as much as in lifestyle. “For example, research indicates that after age 30, strength declines by 10 percent to 15 percent per decade until around age 70, when the loss accelerates to 25 percent to 40 percent per decade. That means even daily routines may require more energy or assistance, nudging retirees toward lower-intensity activities, like river cruises instead of hiking tours, or evenings out over long-haul adventures.” 

But this transition doesn’t have to catch you off guard, he says. You can plan for “the flip” and make sure that your assets go the distance, “especially with inflation eroding your spending power over time.” 

He adds, “Still, none of this means the music stops. Just like flipping a record, the later years of retirement offer a different tempo — slower, softer, more reflective. But they’re not any less meaningful or even less expensive.” 

The “Side B” Years and the Rising Cost of Health Care 

The expenses don’t stop just because “Side B” is a little slower. Between increased health care and caregiving needs, spending can rise again during this later phase.  

“A 65-year-old retiring in 2025 can expect to spend an average of $172,500 on health care over the course of retirement, according to Fidelity. It explains why two in three workers (66 percent) say they’re worried about their health as they age. And for good reason: Genworth’s 2024 Cost of Care Survey pegs the national median annual cost of assisted living at $70,800,” Schroeder explains.  

Don’t Let Cost of Long-Term Care be a “Blind Spot” 

Long-term care can be a potential blind spot for folks, says Schroeder, because not everyone will require it and there are lots of different ways to fund it.  

But Martin advises most people to consider long-term care insurance. “If you’ve planned for healthcare needs on the back end,” he says, “you can feel more comfortable spending freely during your earlier, more active retirement years.” 

And Schroeder notes that some experts fear that pre-retirees might be a bit too optimistic about their latter years, assuming a “that won’t happen to me” stance about needing long-term care. “But even if long-term care insurance isn’t the right fit, it’s essential to have a financial strategy for a worst-case scenario,” he adds.  

Enjoying the “Side B” Years: It’s About More Than Money 

As he concludes his article, Schroeder is quick to note that preparing to thrive on “Side B” isn’t just about money.  

“Research indicates that people with a sense of purpose experience less cognitive decline,” he writes. “Regular volunteering is linked to slower biological aging, and staying mentally and socially engaged can help stave off depression, loneliness and memory loss. And, of course, regular exercise remains one of the most effective tools for aging well.” 

This is a period of life worth looking forward to, he says, since older adults tend to be happier than their younger counterparts. “Research shows that with age comes greater emotional resilience and contentment, as older adults tend to live more in the present, appreciating time rather than constantly planning for what’s next,” Schroeder concludes.  

To repeat John Lennon’s quote: “Life is what happens when you’re busy making other plans.” 

Rajiv Nagaich – Your Retirement Planning Coach and Guide 

The long-awaited book by Rajiv Nagaich, called Your Retirement: Dream or Disaster, has been released and is now available to the public. Retirement: Dream or Disaster joins Rajiv’s ground-breaking DVD series and workbook, Master Your Future, as a powerful planning tool in your retirement toolbox. As a friend of AgingOptions, we know you’ll want to get your copy and spread the word.  

You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families – and you want to make sure it doesn’t happen to you – then this book is must-read. 

Through stories, examples, and personal insights, Rajiv takes us along on his journey of expanding awareness about a problem that few are willing to talk about, yet it’s one that results in millions of Americans sleepwalking their way into their worst nightmares about aging. Rajiv lays bare the shortcomings of traditional retirement planning advice, exposes the biases many professionals have about what is best for older adults, and much more. 

Rajiv then offers a solution: LifePlanning, his groundbreaking approach to retirement planning. Rajiv explains the essential planning steps and, most importantly, how to develop the framework for these elements to work in concert toward your most deeply held retirement goals.  

Your retirement can be the exciting and fulfilling life you’ve always wanted it to be. Start by reading and sharing Rajiv’s important message. And remember, Age On, everyone! 

(originally reported at www.kiplinger.com)