The 'Discovery' stage: 65 - 74

This first or early stage of retirement will, for many, be the 'doing' years. The time to have a go at all the things you've said you'd get around to 'some day'.

Travelling, seeing family, spending more time on those hobbies and interests, and just getting on with it. You might expect to be physically and mentally capable of living a fairly active lifestyle. In fact this phase may not be that much different than pre-retirement except that there may be more time to do things like travel and hobbies.

This stage could also still include work. It may be part-time work or consulting in the same field of your pre-retirement career, or it may mean self-employment. Whatever the case, active retirement is really living the stereotypical retirement dream. For many retirees in this phase, they are busier than they were prior to retirement.

It is common for your mind and body to be sharp and to be excited to embark on new adventures. As a result, you may find this to be the most expensive phase of retirement. Travel, boats, hobby cars or dining out with friends are often the fun things in life we look forward to in retirement. However, you’ll have to balance these increased costs to ensure you don’t consume your savings in the first 10 years.

Careful advance planning means you’re more likely to enjoy everything you want in your early retirement years while also safe guarding your future income.