Spending Through the 3 Stages of Retirement (Go-Go, Slow-Go, No-Go) — and What It Means for Your Plan

Retirement isn’t one single “budget” that stays the same for 20–30+ years. For many retirees, spending changes in phases—often called the Go-Go, Slow-Go, and No-Go years—because health, energy, and lifestyle naturally evolve over time.

Understanding these stages helps you answer the questions I hear all the time:

• “Can I safely spend more early in retirement?”

• “Will my spending drop later?”

• “How do I plan for healthcare and long-term care?”

Below is a clearer, more practical way to think about retirement spending—and how to build a plan that supports both fun today and security later.

Stage 1: Go-Go Years (typically the first 5–10 years)

What it looks like:
You’re newly retired, healthier, and more active. This is when retirees often prioritize:

• Travel (bigger trips, more frequent trips)

• Hobbies, experiences, dining out

• Visiting family and friends

• Home upgrades, second home/vacation property use

Spending pattern:
Discretionary spending often peaks here because you finally have time + freedom.

Planning implication:
Your retirement plan shouldn’t assume you’ll spend the exact same amount every year. Many people want more lifestyle spending early—and that can be reasonable if you plan for it.

Stage 2: Slow-Go Years (often the next 5–10 years)

What it looks like:
You may still be healthy, but long trips and physically demanding activities become less appealing or more difficult. Life often shifts toward:

• Shorter, easier travel

• More local activities and social gatherings

• Lower-key hobbies (reading, clubs, community)

Spending pattern:
Discretionary spending often declines, while core living expenses stay relatively steady.

Planning implication:
This stage is a good time to “rebalance” your lifestyle budget—still enjoying life, but usually with fewer big-ticket adventures.

Stage 3: No-Go Years (often the final 5–10 years)

What it looks like:
Mobility or cognitive challenges can limit activities outside the home. Support needs may increase:

• In-home care (part-time → full-time)

• Assisted living or nursing care

• Increased medical visits and prescriptions

Spending pattern:
Lifestyle/discretionary spending may be minimal, but healthcare and care costs can rise sharply—and this is the biggest wildcard in many retirement plans.

Real-world cost reminder:

• Fidelity estimates a 65-year-old retiring in 2025 may need about $172,500 (after-tax) to cover healthcare expenses in retirement (premiums, copays, dental/vision/hearing, etc., but not long-term custodial care).

• Separate from that, long-term care can be expensive. Genworth/CareScout reports national median annual costs around $70,800 for assisted living, $111,325 for a semi-private nursing home room, and $127,750 for a private room (2024 data).

Planning implication:
A good retirement plan isn’t only about “Can I travel?” It’s also about “If I need care later, do I have options?”

Do retirees really spend less over time?

Often, yes—but not always, and not evenly.

Many households naturally reduce spending with age as travel and lifestyle spending declines, while healthcare tends to rise. Recent summaries citing BLS-based research commonly show inflation-adjusted spending declines meaningfully from the mid-60s into the 80s, though healthcare/long-term care remains the major risk.

The key takeaway:
Retirement spending is usually lumpy, not flat.

What does this mean for your retirement?

Here are the practical ways this should change how you plan:

1) Give yourself permission to spend (with guardrails) in the Go-Go years

If your plan is built on a realistic long-term model, you don’t have to “underspend” out of fear early on. Many retirees regret being too conservative when they had the health to enjoy it most.

2) Plan for a spending shift, not a spending cliff

Instead of projecting the same spending for 30 years, consider modeling:

• Higher discretionary spending in years 1–10

• Gradual decline in years 11–20

• Higher healthcare/care contingency in later years

3) Don’t let healthcare be an afterthought

A retirement plan should explicitly include:

• Medicare premiums + supplemental coverage choices

• Out-of-pocket costs (dental/vision/hearing are common surprises)

• A strategy for health-related inflation

• HSA planning (when eligible)

Many people underestimate or don’t plan for healthcare costs at all—yet it can be one of the largest retirement expenses.

4) Treat long-term care as a risk-management decision

Long-term care planning isn’t just about buying insurance. It’s about choosing your approach:

• Self-fund with a dedicated “care reserve”

• Traditional long-term care insurance

• Hybrid life/LTC policies

• Family support + home modifications + local resources

• Income flooring strategies (Social Security optimization, pensions, sometimes annuities) to cover baseline expenses

Disclaimer: This article is for educational and informational purposes only and does not constitute investment, tax, legal, or insurance advice. Any strategies discussed may not be suitable for every individual and may involve risks, including the possible loss of principal. Please consult your financial advisor, tax professional, and/or attorney regarding your specific situation before making any financial decisions. Past performance is not indicative of future results.