The “Go-Go” Years: Why Spending More in Early Retirement Makes Sense
Worried about running out of money in retirement? You are not alone. Many clients hesitate to spend on vacations, gifts to family, dinners with friends, hobbies, and other meaningful experiences because they want to be sure they will have enough later on.
A common assumption is that spending should remain steady throughout retirement. In reality, retirement spending often follows a more natural pattern, with the early years tending to be the most active and the most rewarding. For many retirees, those first years bring the greatest combination of health, energy, and flexibility. That often makes them the best time to travel, pursue personal interests, and enjoy the freedom that retirement was meant to provide.
Understanding the Phases of Retirement
Retirement is often described in three phases, each with its own lifestyle and spending patterns:
- The “Go-Go” years: These are usually the first 10 to 15 years of retirement, when people have the most energy, mobility, and freedom. This is often the season for travel, hobbies, family time, and the experiences people imagined during their working years. Discretionary spending is often highest during this phase because retirees are more active and more inclined to say yes to new opportunities.
- The “Slow-Go” years: Over time, life often settles into a quieter rhythm. Travel may become less frequent, more local, or more comfort-focused. Many retirees spend more time at home, simplify their routines, and place greater value on ease and familiarity. These years can still be full and enjoyable, but spending often shifts away from larger experiences and toward comfort, convenience, and day-to-day lifestyle needs.
- The “No-Go” years: In the later years of retirement, spending often shifts more toward healthcare and support needs. Lifestyle-related spending usually declines further, and overall spending is often lower than it was in earlier retirement years.
For many people, one of the hardest parts of retirement is moving from a saving mindset to a spending mindset. After decades of building assets, it can feel uncomfortable to start using them, even when the plan supports it. That is why it can be so helpful to think beyond the numbers and ask a different question: what would make these years meaningful?
For some, that may mean more travel or special family experiences. For others, it could mean finally taking up a hobby, helping children or grandchildren, making home updates, or simply having the freedom to enjoy life with fewer limitations. Spending more early in retirement is not always a sign of excess. In many cases, it is a thoughtful use of the years when you are most able to enjoy them. Waiting too long can mean missing the window for the experiences that matter most.
The Importance of Financial Modeling
Of course, spending more confidently starts with understanding what your plan can support. That is where financial modeling becomes especially valuable.
At Oasis, we build retirement plans that reflect how spending tends to change over time. We account for inflation, healthcare costs, taxes, and market conditions, while also recognizing that discretionary spending often declines in later years. Just as important, we can review multiple versions of a retirement scenario, from a modest approach to an all out version that includes bigger trips, family gifting, or other meaningful goals.
By comparing these scenarios and stress testing the results, we can help clients see what is realistic, sustainable, and aligned with the life they want to live. This process gives shape to possibilities. Instead of guessing what feels safe, you can evaluate different choices with greater clarity and confidence. Often, the outcome is reassuring. The numbers may support more freedom in the early years than you expect.
That can be an important shift. A financial plan should do more than preserve assets on paper. It should help support the life you want to live with those assets. If there is something you have been thinking about doing in retirement, whether that is a special trip, a new goal, or simply a more comfortable lifestyle, it may be worth exploring now.
If you would like to talk through different possibilities, your Oasis team would be happy to help you model them, compare scenarios, and see what fits comfortably within your plan.