9 Financial Resolutions You Stop Making When You Retire
Written by
Cindy Lamothe
Edited by
Ashleigh Ray
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Every year brings a fresh opportunity to start over and set new goals. But your money resolutions will begin to look differently once you stop working.
For one, you no longer have to worry about saving for retirement. It’s also likely that your priorities will shift. For instance, maximizing your income is often a pre-retirement focus, said Andy Chang, founder and CEO of The Credit Review.
“When you are retired, the focus shifts towards optimizing spending,” he explained. “Money saved on eating out, commuting and work clothes can be reassigned to other expenditure units that matter more in retirement.”
Below are some other financial resolutions you can thankfully stop making once you retire.
Paying Down Debt
In retirement, paying down debt takes on a different nature, says Chang. While it remains important, he notes that the urgency typically seen during your working years is no longer necessary, as long-term debt can often be managed at a slower pace in retirement.
Ann Martin, director of operations at CreditDonkey, agrees that this is one resolution you really should be in a position to stop worrying about.
“If you’re still carrying significant debt in retirement, it’s going to seriously cut into your limited income and potentially start drawing down your savings more quickly,” she pointed out. “This is why it’s so important to make and keep a resolution to pay off your debt well before your retirement date.”
Building a Financial Cushion
According to experts, building an emergency fund may not be as crucial once you retire.
“Post-retirement, the emphasis moves to sustaining an emergency fund,” Chang highlighted. “Retirees often have some kind of nest egg, so rather than building anew, they are generally more focused on making sure it lasts.”
Long-Term Savings Goals
“Lots of people who are still many years away from retirement have a few different long-term savings goals they may be working toward,” said Carter Seuthe, CEO of Credit Summit, “such as saving enough for a downpayment on a home or for renovations on an existing home.”
When you’re retired, he says you’re likely to have reached many of these financial benchmarks already and can instead use that money toward sustaining emergency or health savings.
Working Overtime for a Raise
The most obvious financial resolution you can stop making in retirement, according to Jake Hill, finance expert and CEO of DebtHammer Relief, is working hard enough to earn a raise.
While the goal to work overtime or take on extra jobs during your career may have helped you accumulate some added savings. Now in retirement, focusing on your work becomes more about fulfilling your personal interests than aggressively accumulating wealth.
What this means for you? You can ditch working so hard for that raise.
“Since your income no longer depends on traditional employment, pay increases are a thing of the past,” said Hill.
Instead, he recommends making resolutions that help you maximize your retirement income, such as cutting unnecessary spending.
“You can also make resolutions connected to increasing your income, such as finding a new passive income stream to invest in for the New Year.”
Putting Money Away for Retirement
“Obviously, a common financial resolution that you won’t need to make when you retire is saving for retirement,” said David Kemmerer, CEO of CoinLedger.
“This doesn’t mean that you shouldn’t save money anymore, it just means that you don’t need to prioritize putting more money into your 401(k) or other retirement account,” he explained. “Chances are, you also won’t be needing to make financial resolutions like saving up for your first home or getting out of student loan debt.”
Paying Off a Mortgage Quickly
Before retirement, maybe your goal was to pay off your mortgage swiftly. Or perhaps you managed to reduce it significantly, leaving you with a remaining balance of around $50,000.
In retirement, however, the priority should be less on aggressive repayment and more on managing monthly expenses while enjoying the comfort of your home.
Obsessing Over the Stock Market Or Chasing Risky Investments
Unless you’re aiming for a stress marathon, checking the stock market every minute isn’t a resolution, said Sammie Ellard-King, founder of Up The Gains. “It’s a one-way ticket to anxiety city,” he said.
“After clocking out for good, focus on the big picture. Daily market fluctuations won’t make or break your golden years.”
Along the same line, Ian Rodda, CFO of Page One Formula, argues that retirees should avoid making resolutions such as chasing risky investments for quick profits or stressing over daily stock market changes.
Instead, he says to prioritize financial security and long-term stability by diversifying your portfolio and reaping the benefits of your efforts.
Keeping Up Appearances
Maybe one of your resolutions in the past involved keeping up with the Joneses by upgrading your car to a newer model or furnishing your home with the trendiest furniture and decor.
Fortunately, now in retirement, you can focus on your personal interests, experiences, and health. You’ve transitioned from comparing possessions to investing in a more joyful, comfortable lifestyle.
Delaying Travel and Leisure
In the past, making a commitment to save up money by delaying travel may have seemed like a necessity to reach your savings goals. You may have even postponed any lengthy trips during your career due to other financial responsibilities.
If you had a strict travel budget before, now is your time to splurge and enjoy the experiences that bring you the most joy.
Extreme Frugality Over Enjoyment
“You’ve earned the right to enjoy your retirement, not stress over every cent,” Ellard-King highlighted. “Budget, sure, but don’t turn it into a survival game. A decent quality of life is the real financial goalpost.”
He adds that a hoarder mentality doesn’t retire with you. “Splurge a bit. Travel. Indulge in hobbies. Your golden years are for enjoyment, not for tallying every dime. Extreme frugality is so last decade.”
In the financial resolution game, retirement calls for a remix, so he recommends, “Drop the unnecessary, focus on the meaningful and savor those hard-earned golden years without unnecessary fiscal fretting.”
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