Retirement. Just a long vacation without a paycheck?

As seen in The Oakland Press

June 28th, 2026

Retirement. Just a long vacation without a paycheck?

by Ken Morris

The day a person retires should not be considered as reaching the finish line. Because it isn’t. In fact, it’s the beginning of a new chapter. Financial advisors spend a lot of time preparing people for this transition, which could very well constitute one-third of their lives. There will be much number crunching and conversations about such topics as future sources of income, possible Roth conversions, taxation, beneficiary planning and, of course, healthcare costs.

In the early years of retirement, my client conversations often begin with highlights of a recent trip or excited anticipation of an upcoming trip. Some refer to these travel years as the go-go years of retirement.

Based on my experience, those high-energy travel years eventually come to a close. It may be due to a medical issue, or as the result of an unforeseen incident. Even something as simple as an accidental tumble can put the kibosh on travel plans. Whatever the reason, people eventually begin the winding down phase of the retirement years. Too often, it’s a topic that’s overlooked in discussions.

For instance, have you noticed how many senior communities keep popping up? Moving into one is a discussion I’ve had with many clients, including my own late parents. And the discussions usually begin with cost. Let’s say a senior residential community charges $6,000 per month. My first question is, “What services are included besides housing?” When comparing to a client’s current costs, I look for existing expenses that will no longer be needed. For instance, if daily meals are included, the cost of groceries is greatly reduced. If you’re currently paying yard or housekeeping services, you’ll no longer have that expense. What’s more, if you previously spent money on travel and plan to reduce or eliminate it, that could free up a significant amount toward a senior housing community.

In other words, if you factor in any expenses that will be reduced or eliminated, the net difference of monthly outlay can be substantially lowered. It’s not too much of a stretch to say that $6,000 cost could be whittled down to just $3,000.

Another expense that’s often an uncomfortable discussion is when health issues and concerns go beyond the comforts of a senior community. For example, if memory care is needed or if housing that provides services beyond the capabilities of a senior community is necessary. A nursing home, for example.

These are real expenses. And based on numerous studies on aging, I think it’s safe to say a senior should have earmarked at least $250,000 for medically related expenses. That’s beyond what Medicare provides. Such expenses are the polar opposite of a fun trip. Excessive? Maybe. In reality, however, it’s a cost that many are facing, especially as medical technology continues to lengthen our lifespans.

Life has many stages and there are many terms to describe them. From infant to child to teenager to adult. But there’s only one word to describe the post-paycheck retirement years. Senior. In fact, there can be many stages of life after retirement and each brings new needs and new expenses. Possibly one-third of your life is ahead, and it has to be navigated without a paycheck. I’m confident that if you properly plan, and save and invest judiciously, you can enjoy the multiple stages of a long retirement.