How to Stay Socially and Financially Independent After Retirement

February 14, 2025

How to Stay Socially and Financially Independent After Retirement

February 14, 2025

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How do you maintain financial confidence and fulfill social life in retirement when costs are rising, and communities are changing? Many retirees and pre-retirees face this challenge, wondering if they have enough savings while maintaining an active and engaging lifestyle. 

According to the National Institute on Retirement Security, 79% of Americans believe the nation is facing a retirement savings crisis. At the same time, the Transamerica Institute highlights that retirees who maintain strong social connections experience better physical and emotional health, yet nearly one in four adults over 65 are socially isolated. 

Balancing financial independence with social engagement is key to achieving a fulfilling and enjoyable retirement. With the right strategies, you can help take control of your finances while staying actively involved in your community. 

1. Build a Strong Financial Foundation for Long-Term Security

Financial independence begins with a structured and well-thought-out plan. The Retirement Survey & Insights Report 2024 by Goldman Sachs Asset Management found that retirees with a financial plan experience less stress and more confidence in their long-term security.

Key Steps to Strengthen Your Financial Plan

  1. Assess your income streams: Review Social Security benefits, pensions, investment returns, annuities, and personal savings. Diversifying your income sources can help mitigate risks.
  2. Prioritize essential vs. discretionary spending: Create a flexible budget for inflation, healthcare costs, and lifestyle goals.
  3. Plan for longevity: Many retirees underestimate how long they will live—financial professionals recommend saving for at least 25–30 years of post-retirement expenses.

For more practical strategies on improving financial habits, read Building Financial Habits That Stick: Long-Term Wealth Strategies for 2025.

2. Maintain an Active Social Life for Mental and Emotional Well-Being

Leaving the workforce often means fewer daily interactions, making social engagement even more important. According to the Transamerica Institute, retirees who stay socially connected report higher life satisfaction, stronger cognitive health, and even increased longevity.

How to Stay Connected in Retirement

  1. Join clubs or groups: Whether it’s a book club, golf league, or travel group, consistent social activities help build relationships and a sense of belonging.
  2. Volunteer for a cause: Many retirees find fulfillment through volunteering, which not only supports the community but also fosters meaningful connections.
  3. Leverage technology to stay in touch: Video calls, social media, and virtual communities allow retirees to maintain relationships even when physically distant.

An active social life enhances not just mental health, but also overall well-being—which ties directly into healthcare and housing considerations.

3. Plan for Healthcare and Housing to Support Independence

Healthcare costs remain a top financial concern for retirees. According to Deloitte Insights, many Americans underestimate their long-term medical expenses, leading to unexpected financial strain.

Key Healthcare and Housing Considerations

  • Review Medicare and supplemental insurance plans: Understanding coverage options—including long-term care insurance—can prevent financial surprises.
  • Prepare for aging in place: Modifications like grab bars, improved lighting, and accessibility features can help retirees live independently longer.
  • Consider downsizing: Moving to a smaller, lower-maintenance home can reduce expenses and simplify daily living.

To explore whether aging in place or relocating is the right choice, read What Is an Age-in-Place Plan, and Why Do You Need One? With housing and healthcare covered, the next step is to optimize tax strategies to protect your retirement savings.

4. Implement Tax-Efficient Strategies to Protect Retirement Savings

Taxes can significantly impact retirement income. The National Institute on Retirement Security found that taxes are among the largest expenses for retirees. Proper planning can reduce unnecessary tax burdens and maximize savings.

Tax-Smart Retirement Planning

  1. Strategic withdrawals: Plan when and how to withdraw from tax-deferred accounts (IRA, 401(k)) vs. tax-free accounts (Roth IRA).
  2. Leverage tax deductions: Charitable donations and medical expenses may qualify for significant deductions.
  3. Consider Roth conversions: Converting traditional retirement accounts to Roth IRAs can reduce taxable income in later years.

For a comprehensive approach to tax planning, read 7 Must-Ask Questions for a Tax-Smart Retirement. With tax efficiency in place, it’s important to continue managing investments effectively in retirement.

5. Continue Growing Wealth with a Balanced Investment Strategy

Investment decisions continue beyond retirement. The MFS Investment Management 2025 Retirement Outlook emphasizes that retirees who periodically reassess their risk tolerance and adjust their portfolio diversification tend to achieve greater financial stability.

Post-Retirement Investment Strategies

  1. Diversify income streams: Dividend stocks, annuities, and real estate investments can provide steady income without excessive risk.
  2. Adjust risk tolerance over time: A mix of conservative and growth-oriented investments helps provide stability while preserving wealth.
  3. Consult a financial professional: Regular portfolio reviews help adapt investment strategies to market conditions and personal financial goals.

Conclusion

Retirement should be a time of confidence, fulfillment, and financial independence. By proactively managing your wealth, maintaining strong relationships, and preparing for future expenses, you can work toward enjoying the lifestyle you desire.

Next step: Take control of your retirement with a personalized financial strategy. Schedule a consultation with Liberty Group’s financial professionals today to explore tax-saving strategies, investment planning, and wealth management solutions.


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Standard Disclosure 

This blog expresses the author’s views as of the date indicated, are subject to change without notice, and may not be updated.  The information contained within is believed to be from reliable sources.  However, its accurateness, completeness, and the opinions based thereon by the author are not guaranteed – no responsibility is assumed for omissions or errors.  This blog aims to expose you to ideas and financial vehicles that may help you work towards your financial goals. No promises or guarantees are made that you will accomplish such goals.  

Past performance is no guarantee of future results, and any expected returns or hypothetical projections may not reflect actual future performance or outcomes. All investments involve risk and may lose money. Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must evaluate and investigate any investments considered or any investment strategies or recommendations described herein (including the risks and merits thereof), seek professional advice for their particular circumstances, and inform themselves about the tax or other consequences of any investments or services considered.   

References

Goldman Sachs Asset Management. (September 2024). Retirement Survey & Insights Report 2024: Planning. https://am.gs.com/cms-assets/gsam-app/documents/insights/en/2024/am-retirement-survey-2024.pdf

Doonan, D., & Kenneally, K. (February 2024). Retirement Insecurity 2024: Americans’ Views of Retirement. National Institute on Retirement Security. https://www.nirsonline.org/wp-content/uploads/2024/02/FINAL-2024-Public-Opinion-Research.pdf

Deloitte Insights. (April 25, 2022). Closing the Gap in US Retirement Savings. https://www2.deloitte.com/us/en/insights/industry/financial-services/closing-retirement-savings-gap.html

Collinson, C., & Cho, H. (September 2023). Life in Retirement: Pre-Retiree Expectations and Retiree Realities. Transamerica Institute. https://www.transamericainstitute.org/docs/library/research/life-in-retirement-preretirees-expectations-retiree-realities-report-september-2023.pdf

MFS Investment Management. (2025). Retirement Outlook 2025. https://www.mfs.com/en-us/investment-professional/insights/retirement-insights/retirement-outlook.html

White, M. C. (January 31, 2025). People Have No Idea How Much to Save for Retirement. Money. https://money.com/workers-overestimate-retirement-savings/

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