Preparing for independence, not just the future

As individuals approach retirement, their concerns often shift from “how much do I need to save?” to “how can I maintain independence and quality of life for the years ahead?” Today’s retirement landscape is much more complex than it was a generation ago and planning for it requires a combination of foresight and flexibility.

From my vantage point in the senior living sector, I have observed several emerging trends that are influencing how individuals think about financial readiness. One of the more encouraging trends I am seeing is the growing number of people who are preparing earlier. Many individuals work with estate planners to create trusts, finalize wills, and put the right documents in place well before retirement. I am also seeing a stronger emphasis on holistic wellness, recognizing that physical and mental health will play a key role in the cost and experience of aging.

This proactive mindset extends into financial planning. While traditional pensions have become less common, individuals are making use of hybrid insurance products and riders that add flexibility to their retirement strategies. These tools offer alternatives to long-term care insurance, which is oftentimes cost-prohibitive. Rather than relying solely on Social Security or a 401(k), individuals are starting to think more creatively about how to build a diverse and resilient financial plan fit for their future.

One area where this creativity is particularly evident is in housing. There has been a noticeable change in how people in their 50s and 60s approach the idea of where they will live as they age. Previous generations often stayed in their homes until health issues or other needs made a move unavoidable. Today’s retirees are thinking about housing more intentionally. Community-based living options that offer a social connection, reduced home maintenance responsibilities, and access to health services if and when needed are appealing reasons for individuals in their 50s and 60s to consider moving. We are also seeing an increase in the utilization of artificial intelligence (AI) to support retirement planning by analyzing income, savings, and goals to offer personalized guidance.

This shift also brings new financial considerations. It is important to look beyond the monthly rent or mortgage payment and consider what services are included. Are meals, transportation, and activities part of a bundled package or paid à la carte? Is there access to a full continuum of care that supports evolving medical needs over time?

A common misconception I encounter in my position is that staying in one’s home is always the more affordable option. While it may appear less expensive on paper, especially if one’s mortgage is paid off, homeownership still comes with costs. For example, lawn care, snow removal, home repairs, rising utility bills, and groceries can add up quickly. Furthermore, many people mistakenly believe that Medicare will cover long-term custodial care, which it does not. These misunderstandings can have serious financial consequences if not addressed early on.

There is also the ever-popular question of whether or not someone has “saved enough” for retirement. The answer to this question is not one-size-fits all and is nearly impossible to answer universally, as the concept of “enough” is highly individualized. For some, it may mean maintaining a modest lifestyle close to family. For others, it may involve extensive travel, second homes, or philanthropic giving. The best advice I can offer is to partner with a trusted financial planner who can help design a strategy plan based on personal values, goals, and needs.

Ultimately, the best retirement plan is one that prioritizes independence. If there is one message I hope individuals take to heart, it is this: plan early and plan with purpose. Do not wait for a crisis to force your hand. Ask yourself what kind of life you want to lead, what independence means to you, and build your retirement strategy around that vision.

When done thoughtfully, retirement planning becomes not just about preparing for the end of something but creating the conditions for a fulfilling next chapter.

Sabrina McLeod is executive vice president and chief financial officer, St. John’s Senior Services.

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