How to Rewire Your Retirement Mindset and Live with Purpose

Most of us spend decades saving for retirement—but no one tells us how to spend that money once we get there. If you’ve ever felt anxious about touching your nest egg or unsure how to plan your retirement lifestyle, you’re not alone. In fact, most retirees struggle with the mental shift from building wealth to living off of it.

Let’s break down what it means to truly “rewire” your approach to retirement—and how smart planning, flexible strategies, and thoughtful choices can make those golden years shine.

1. Retirement Isn’t Just About the Numbers—It’s About Permission to Spend

When we’re working, we’re in accumulation mode. We save, invest, and watch our balances grow. But once retirement hits, we enter the decumulation phase—and that’s where things get tricky.

Many retirees don’t give themselves “permission to spend.” The fear of running out of money often leads to underspending, and as a result, people leave behind large sums they never enjoyed.

Jamie, one of our financial experts, explained how part-time work can help ease this transition. Think of it as a retirement test drive—it lets you spend more confidently while adjusting to a new lifestyle. And that lifestyle? It should be about more than financial security. It should be about fulfillment, purpose, and community.

2. Planning for Purpose: Lifestyle Comes First

One of the most overlooked aspects of retirement is social design. During our careers, we build “accidental communities”—colleagues, neighbors, school networks. In retirement, you have the freedom to create purposeful communities that reflect your values and passions.

Whether that means volunteering, moving to a new city, or joining social groups, Jamie stressed that meaning needs to be part of your plan before you retire. Try it out. Take a long stay in that beach town. Volunteer for the charity you admire. Not every retirement dream—like relocating to Hawaii—sticks. What matters is aligning your lifestyle with what brings joy and keeps you connected to the people who matter most.

3. Risk Isn’t Just Market-Related—It’s Lifestyle Related

Inflation is one of the biggest threats to a secure retirement. Rising costs—especially early in retirement—can erode your purchasing power significantly over a 30-year span. It’s called sequence of inflation risk, and it’s as dangerous as a bad market year.

Healthcare is another major wildcard. Medicare doesn’t cover everything, especially prescription drugs, and costs keep rising. That means planning isn’t just about returns—it’s about resilience.

Add in tax law changes and policy shifts, and it becomes clear: retirement plans must be adaptable, not fixed in stone.

4. Tax Law Changes and Social Security: Don’t Panic, But Prepare

We talked about the 2025 expiration of the Tax Cuts and Jobs Act and the potential ripple effects. While some provisions will likely be preserved, Jamie emphasized that Social Security remains a bedrock of retirement income—and is more stable than many people think.

With an overhead of just 0.3%, Social Security is one of the most efficient government programs in history. But yes, it needs updates. Delaying retirement age or tweaking contributions could help keep the system viable for future generations without affecting current or near-term retirees.

5. How to Handle Real Estate Repairs Without Raiding Your Retirement

Fred and Ginger from Huntington Beach had $100,000 in rental property repairs and no cash to spare. The team’s advice? Don’t tap your IRA just to fix a roof.

Instead, consider a line of credit to preserve tax-advantaged accounts and keep contributing to Roth IRAs if possible. It’s also worth analyzing whether all properties are pulling their weight. Sometimes, selling a property provides better long-term cash flow and simplifies your financial picture.

6. Retiring Early with a 72(t): What You Need to Know

Peter from Florida retired at 51 and needed income before traditional retirement age. One smart option? A 72(t) tax election, which allows penalty-free withdrawals from an IRA before age 59½—if you follow strict rules.

He also had rental income and installment sale payments to manage, which adds layers of tax complexity. The key is to align your income streams with tax brackets, use standard deductions wisely, and keep long-term strategy in mind.

7. Should You Buy That Dream Beach House?

Finally, Calvin and Susie debated buying an $800,000 beach house. He wanted to prioritize Roth conversions. She wanted sand between her toes.

With $4 million in liquid assets and $90,000 in fixed income, the team concluded: They could do both. Taking on a small mortgage could give them the house and the flexibility to continue tax-smart strategies like Roth conversions.

The bottom line? Happiness matters. Retirement isn’t about hoarding money. It’s about using your resources wisely to create experiences, memories, and meaning.

Retirement planning is more than spreadsheets and withdrawal rates. It’s about striking a balance—between lifestyle and liquidity, between dreams and discipline. Whether it’s deciding when to spend, where to live, or how to handle taxes, the key is to plan with intention and live with confidence.

If you’re nearing retirement or already there, it’s time to rewire your thinking. Your savings are there to be used—wisely, joyfully, and purposefully.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.