Editor's Note: This story originally appeared on Boldin.
If you are in your 40s, 50s or 60s, you are probably hoping to find the fountain of youth, and you are ready to feel like a kid again with a happy-go-lucky retirement.
However, when you plan your golden years, it is best to retire like an adult … that is to say responsibly and with a written plan for making your money last as long as you do.
The Merriam-Webster dictionary added “adult” as a verb — not just a noun in 2023. Here’s the definition: “To ‘adult’ is to behave like an adult, specifically to do the things — often mundane — that an adult is expected to do.”
Being an adult means being responsible, dependable, self-sufficient, and maybe even knowing when it is a good time to throw these rules out the window.
Examples of adulting include cleaning up after yourself, paying bills on time, and — we would like to add — planning your retirement. Adults create, maintain, and fully understand a plan for funding their life after they leave their careers.
Keep reading for the ways to know if you have a reliable plan to retire like an adult.
1. You Have a Dream and a Purpose
Without a plan for life after retirement, many retirees find themselves feeling vaguely unfulfilled and restless. You might feel something akin to teenage angst, craving something more but not knowing what that something might be.
Focusing on the financial aspects of retirement is important, but the personal side of your retirement plan is even more critical and could ultimately guide how you use your retirement assets.
2. You Know Your Number
How much do you actually need in savings to retire comfortably? Your “number” isn’t just a guess or even a quick calculation. It’s based on:
- Your expected lifestyle, spending habits and necessary expenses and how they will change over time (here are tips for predicting your retirement expenses)
- Expected income sources (and how those will change over time)
- Assumptions around asset appreciation, inflation, your longevity, and so much more (and predicting a range of possible outcomes of those known unknowns)
Your number will be unlike anyone else’s. It’s possible to retire on Social Security alone and many people struggle to make ends meet and are likely to run out of money even with $1 million or more in savings.
3. You Understand Your Chance of Retirement Success
It’s good to know your number, but what’s really important is feeling confident that your plan is going to work. Are you on track to cover your needs for as long as you live? Are you safe from running out of money in your 80s or 90s?
This is where Boldin’s Chance of Success Score comes in. It’s a simple but powerful metric that uses sophisticated Monte Carlo analysis to show the likelihood your retirement plan will go the distance.
Think of it like a financial weather forecast. If your score is high, you’re in a good position to retire confidently. If it’s low, you’ll get clear, actionable insights on how to improve it, whether that’s working a few years longer, adjusting spending, or rethinking investment strategies.
It’s not about fear; it’s about clarity. Knowing your Chance of Success helps you make informed, adult decisions with your eyes wide open. Because a real retirement plan doesn’t just hope for the best — it plans for it.
4. You Think in Terms of Income, Not Assets
Understanding how much savings you need is useful, but thinking in terms of income, not just assets, is the key to a secure and confident retirement.
That means balancing guaranteed income — like Social Security, pensions, and annuities — with flexible income from investments, dividends and other withdrawals from savings, part-time work, or rental properties.
- Ideally you have guaranteed income to cover essential expenses, providing stability no matter what the markets do. It provides a foundation for your basic needs, ensuring peace of mind.
- Flexible income allows you to adjust for lifestyle choices, unexpected costs, and opportunities. It gives you the freedom to travel, pursue hobbies, or adapt to changing circumstances.
A strong retirement plan ensures you have the right mix of both, so you can confidently spend without fearing market swings or outliving your money.
Instead of obsessing over a magic savings number, you can focus on what really matters: maintaining independence, enjoying life, and making informed decisions that keep your retirement secure, no matter what comes your way.
And You Plan Withdrawals Carefully
Withdrawals from savings are an important part of most retirement plans.
Unlike a regular paycheck, your retirement income often comes from a mix of investments, savings, and guaranteed sources, and pulling from them in the wrong order or at the wrong time can lead to unnecessary taxes, missed growth opportunities, or even running out of money too soon.
Factors like market performance, inflation, health care costs, and required minimum distributions (RMDs) all play a role in how and when you should take money out.
A thoughtful withdrawal strategy balances your spending needs, the sustainability of your savings, and your tax bill.
5. You Have Paid Off High Interest Debt
One of the greatest threats to retirement today may not be saving too little but owing too much.
After making real progress against debt during the pandemic, consumer debt is at an all-time high.
Total household debt rose to $18.036 trillion in 2024, according to Federal Reserve data. And, the share of current debt transitioning into delinquency increased for nearly all debt types.
The most adult way to handle debt is to pay it off before you quit working. However, that is not always possible and carrying some mortgage debt (at a low interest rate) may be preferable to paying it off.
6. You Have Planned for Inflation
Inflation right now is still high and you are probably smarting at the now infamous “cost of eggs.”
High inflation can have a devastating effect on your retirement spending power. As Sam Ewing said: “Inflation is when you pay fifteen dollars for a ten-dollar haircut you used to get for five dollars when you had hair.”
When you are working, your wages generally rise as the costs of goods and services increase. Your earnings “keep pace with inflation,” so normal inflation is not generally a big concern. However, when you are living off of savings, inflation literally robs you of income.
For example: When you are retired, you need some way to enable your savings to outpace inflation. If inflation is at 5% and you are earning a 5% return on your investments, then your financial situation is flat. You haven’t lost money, but you haven’t gotten ahead either.
The good news is that Social Security and some pension programs adjust your income for inflation. The bad news is that if you are living in retirement by withdrawing from investments or savings, then the value of your money will dramatically decrease over time. You will require far more money to support your lifestyle in the future.
7. You Understand How Personal Finance Works (and Use the Right Tools for Making Good Decisions)
Retiring like an adult means bringing your financial know-how into this next phase and recognizing when the right tools can make all the difference.
You understand the fundamentals: budgeting, investing, taxes, risk, and the importance of cash flow. But retirement adds new layers of complexity, from figuring out the best withdrawal strategy to balancing guaranteed and flexible income.
8. You’re Ready for Health Care Costs
Medicare isn’t free, and out-of-pocket health care costs in retirement can be staggering. From premiums and prescriptions to deductibles and dental, the expenses add up quickly, and that’s before factoring in the potential need for long-term care.
A health savings account (HSA), supplemental insurance, and long-term care planning are critical tools in protecting both your health and your finances. Long-term care, in particular, is one of the biggest financial risks retirees face, and it’s often overlooked until it’s too late.
No one likes thinking about it, but responsible adults do because planning ahead means more control, more choices, and less stress for you and your loved ones.
9. You Have a Plan for Other Potential Risks
We cannot predict the future. However, an adult retirement plan is one that mitigates the potential harmful financial effects of a long-term health event, a natural disaster, a car accident, a stock market crash, or some other unknowable future event.
Having the right insurance products and a dedicated emergency fund can protect you.
10.You Can Evolve Your Asset Allocation
Retirement investing is not all about getting the highest return possible. A responsible retirement investment plan matches how and when you need to access the money with your need for growth and security.
And just because you’ve retired doesn’t mean your investment strategy is set in stone. In fact, adjusting your asset allocation over time is a smart, adult move that helps balance growth, income, and risk throughout retirement.
Early on, you may want a more growth-oriented mix to keep up with inflation and support a longer time horizon. As you age, gradually shifting toward more conservative investments can help protect your income and preserve capital.
The key is flexibility and understanding that your needs, risk tolerance, and market conditions will change, and your portfolio should change with them.
As we age, our tolerance for investment risk decreases. And, while you want your savings to grow (or at least not lose value), you may need to turn to safer investments that may earn you a lower rate of return.
Creating the right asset allocation for you now and how it needs to change throughout retirement is no easy feat. You require an understanding of your personal risk tolerance, macroeconomic factors, and investment time horizon.
It is possible to do this on your own. However, it can also be useful to work with a financial advisor who has deep expertise in developing plans that balance growth.
11. You’re Ready to Actively Track and Evolve Your Financial Plan
Retiring like an adult doesn’t mean setting your plan once and forgetting about it. It means staying engaged and adapting as life unfolds. Markets change, expenses shift, goals evolve, and unexpected events happen.
A solid retirement plan isn’t static; it’s a living framework that needs regular check-ins and thoughtful adjustments.
Tracking your income, spending, investments, and risks helps you stay in control and make informed decisions rather than emotional ones.
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