5 Steps To A Simple Retirement Plan
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A real retirement plan isn't a spreadsheet or a formula you memorize. It's five elements working together. So by the end of this episode, you will know how to create a simple retirement plan using these five elements, and which one to start with this week. So if you're looking to go deeper into these elements, I hope you will join me inside the Vision to Action Sprint, which is happening later this month. So most individuals fall behind or are not certain that they're going to retire, and it's honestly because you just don't have a plan yet, concreting in some certain pieces to help you start seeing and creating a plan. But then most people are like how do I make a plan? What is a retirement plan? What are the steps?" And all of those things. And like I said last episode, they immediately go to, "How much do I need to save?" Because it's all about money. And this not only skips the element that drives motivation, but it's also the element that shapes all other elements. If you don't have that element done, it's harder to create the plan, and I'm going to share with you why that is. So the five pieces or the five elements of a simple retirement plan, we start with your vision. So I know we talked about this a little bit last week, but before any numbers that you can get for retirement we need to understand what retirement is going to look like. Specifics, not a generic n- image. Where do you live? What does a Tuesday look like? Are you working part-time or have you fully stepped away? Do you have a second home? Are you traveling? It's this vision, the more granular you get, meaning the more specific you are, this vision becomes your annual expense number. And so it's not just a feel-good exercise, it's the foundation of everything else it sits on. So I know clients come to me and they're like, "How do I maintain lifestyle in retirement?" It's understanding what retirement lifestyle is, if you're carrying it forward or what it is, and then it pieces together that number. So if you took action from the last episode and you are already started sketching your vision, this is where that pays off. And inside the sprint, I'm gonna show you how that, quote, "rough vision" turns into an actual retirement number. We'll talk about it a little bit here, but in the sprint we're going to really make sure you understand how all of these element pieces come together. So element number two is your number. You heard me, your number and your gap. There isn't just a flat, "You gotta have this much saved before retirement." That's not how it works. Okay? So the next element is your calculations, and you input either your vision-based annual expenses, and there takes a little bit of work to get there, and if you're like I'm not sure what that means," your current expenses on an annual stance will work as well, this is going to give you a how much am I spending, and then it's also going to determine where your current savings, retirement savings trajectory has you landing. What's it going to grow to? So I've built a free calculator that takes these two numbers and shows you your target your estimated target number, your estimated retirement savings, and then it gives you your, quote, "gap." Now, this gap is not a verdict, it's not a it's not gonna happen." It's just a diagnostic. Having this information is helpful to know how to start closing the gap. So the link to the calculator is in the show notes, or head over to LinkedIn or Facebook or Instagram and just DM me "calculator" and I'll send you the link, and it- you can easily bookmark that and use that over time, but hopefully it will give you that element number two of your number and your gap. So the element three is your budget And yes, I heard all of the sighs, all of the, "Oh." But the budget is the system that helps you know what decisions to make, and we talked about that in the last episode. Knowing what decisions to make, where am I gonna get momentum? So for the last element where we had our gap and it also drops a piece of my retirement acceleration framework, which is the next element, you have to have a budget to know how to start working that framework into pieces, and we're gonna cover that in a minute. But just know that budgeting is a plan to get you to retirement. A budget is your control piece that's going to guide you there. It's not restricting you. It's not preventing you from doing anything, it's your drawing on the board to see, if I move this piece here and this piece here and do this and do that, retirement will happen in five years. Honestly, it comes from your budget. Calculator is helpful, but the budget is even more powerful. So element number four, as I mentioned, is your... is a piece of the framework from my retirement acceleration framework, which has three levers, we look at either pulling savings, debt or expenses. There's several strategies in each of these. When you do that calculator, it's going to give you one. It's going to give you a very simple action step. I had to generalize somewhere, but I think doing that calculator will help you see that's the area of focus with my money that I need to work on right now, and it shares a little bit of specifics of how to do that. But most people try to do all three at once or think the more they do, the quicker they do, they'll get there, but honestly, that just creates burnout. That's where we get restriction from. That's where we get too much control. So a simple retirement plan has one piece of this acceleration framework that you're working on for the moment. And like I said, most people try to... they either don't take action 'cause it feels overwhelming by thinking they have to do all of it, but honestly, you just need to find one, one that you will do, one that's going to close that gap, and all three of them should. One is going to close it more quickly than another, and that's a big part of what we will be working through in the live portion of the Vision to Action Sprint. All right, so the final piece, the final element of your retirement plan is your rhythm So let me cap what we've come to so far, because this piece is the action steps and then we gotta go back to the reference of the others. So we have our vision. Vision can change, hopefully not extremely, but the closer you get and as life happens. Number two was your retirement number and your gap, and that is something that's going to be wei- or be very heavy in this rhythm, so I'm gonna talk about that in a minute. Number three is your budget, as that changes, as your elements in your expenses change. So every quarter, you are going to want to review and adjust. Recalculate your number, because I just said if you've paid down debt the market has changed in 90 days, you've added more to savings, see if your gap is closing. It might be slow in the very beginning, and that's okay. But if the lever that you're doing is closing, it's working. Instead of just assuming and hoping, it gives you one quick check-in, readjust if you need, and keep going forward for another 90 days. It's a simple check-in that keeps your plan in action instead of something that you build once and forget. So if you've heard me talk about before, plans are great, but we have to have action steps, and that's where my retirement acceleration formula, or framework, excuse me, comes into play. Instead of just going okay, I hope I get there someday," you can actually, take some purposeful action. And understanding these elements, you for yourself know exactly what you need to do, and it can be different from everybody for many different reasons. So your action step from this week is to go use the calculator, so there's the link in the show notes, or DM me Calculator on Facebook, LinkedIn, or Instagram. If we're connected, great and I'll send it to you. And then as you work through your vision, as you get your expenses figured in a different way, that calculator will again help support you. So if you want help doing all five of these elements, creating a very simple plan, I invite you to join my Vision to Action Sprint, okay? You can go find the information at elevatefinances.us\webinar. Get registered. There is a replay that will go out for seven days if you're not able to attend it live. It is a five-day sprint, four days of that on email, one day for 60 minutes live, and- It will help you create that simple retirement plan, give you something to follow, help you know how to take action. All right, so I hope you will join me next week on the podcast as we dive into how to budget for retirement. Just another clarity piece along this stretch of creating a retirement plan. We'll see you next week. And if you've stuck around to the very end, I am celebrating episode 200 with this episode. It's been three and a half, almost three and a half years in the making. I love doing these episodes. I love supporting you. I would love to give a free strategy session to those of you who are willing to leave me a review. I'm not going to ask for specifics. I know sometimes people ask for a five-star. Please just give an honest review with your thoughts. If you can screenshot that and send it to me, maybe you're in my Facebook group. You can DM me on Facebook, LinkedIn, Instagram, or through my email if you're on my email list. And for everyone who submits a review, I will put you into an entry for a free strategy session. So yes, send me it where I can get a hold of you. That strategy session you can learn more about on my website. Again, elevatefinances.us backslash session, and you can see what you'll be winning. Thank you for all your support.
If you've ever wondered why retirement planning feels so overwhelming, you're not alone.
Many people assume the hardest part is figuring out how much money they need. So they search for retirement calculators, ask friends how much they've saved, or look for the "magic number" they'll need before they can retire.
But that's actually where most people get stuck.
A simple retirement plan isn't about chasing someone else's number. It's about creating a retirement process that is built around the life you want to live.
When you have the right pieces in place, retirement planning becomes much less overwhelming. Instead of wondering if you're doing enough, you'll know what to focus on next.
Let's walk through the five steps that make up a simple retirement plan.
Step 1: Create Your Retirement Vision
Before you ever calculate how much money you'll need, you need to answer a more important question:
What does retirement actually look like for you?
This is the piece most people skip.
Instead of creating a clear picture of retirement, they immediately jump to trying to figure out how much is enough.
Your retirement vision becomes the foundation for every financial decision that follows.
Ask yourself questions like:
Where will you live?
What will a typical Tuesday look like?
Will you work part-time or be fully retired?
Will you travel often?
Do you want to be closer to family?
Will you own one home or two?
The more specific your vision becomes, the easier it is to estimate what your retirement lifestyle will cost. This isn't just a fun exercise. It's the first step in your retirement process because your vision eventually becomes your retirement spending plan.
Without it, every number you calculate is simply a guess.
Step 2: Know Your Retirement Number and Your Retirement Gap
Once you have a clearer retirement vision, it's time to look at the numbers.
Many people believe everyone needs the same amount saved before retirement. That's simply not true. The amount you need depends on the life you've envisioned.
This is where you calculate:
Your estimated retirement expenses
Your projected retirement savings
Your retirement gap
Your retirement gap is simply the difference between where you're expected to be and where you are projecting to be.
Here's the important part
Your retirement gap is not a verdict. It's not telling you retirement is impossible. It's simply a diagnosis. Think of it like getting lab work done at your doctor's office. The results don't define your future, they simply tell you what needs attention.
Once you know your retirement gap, you can begin making intentional decisions to close it. Without this information, you're simply hoping everything works out.
Step 3: Use Your Budget as Your Retirement Plan
For many people, this is the least exciting step. Mention budgeting and people immediately think:
"I'll have to stop spending."
"I won't be able to enjoy life."
"I've already tried budgeting."
But budgeting isn't about restriction. Your budget is the operating system behind your simple retirement plan.
It helps you answer questions like:
Where is my money actually going?
Which expenses support my retirement goals?
Where can I make changes without sacrificing what matters most?
A budget gives you control. Instead of wondering whether retirement is possible, you begin making decisions that move you toward it. It becomes a roadmap instead of a list of rules.
Every dollar you intentionally direct today creates more flexibility tomorrow.
Step 4: Focus on One Area That Closes Your Retirement Gap
One of the biggest mistakes people make is trying to improve everything at once.
They decide they're going to:
Save more.
Pay off debt faster.
Cut every unnecessary expense.
Never eat out again.
Cancel every subscription.
It usually lasts about two weeks. Then burnout sets in.
A better retirement process focuses on one area at a time. I have defined these as my Retirement Acceleration Framework.
Savings
Increasing retirement contributions or building additional savings, required for stability now and into retirement.
Debt
Paying down debt strategically so more money becomes available for future retirement goals.
Expenses
Reducing or optimizing recurring expenses like insurance, internet service, subscriptions, or everyday spending.
Each of these areas helps close your retirement gap. The key is choosing one area to focus on first. When you concentrate your energy on one meaningful improvement instead of ten small ones, progress becomes much more sustainable. Consistency beats intensity every time.
Step 5: Create a 90-Day Retirement Rhythm
One of the biggest misconceptions about retirement planning is that you create a plan once and you're done.
Life doesn't work that way. Markets change. Expenses change. Income changes. Goals change.
That's why every simple retirement plan needs a regular review process.
Every 90 days, revisit your plan and ask:
Has my retirement vision changed?
Maybe not dramatically, but small adjustments matter.
Has my retirement gap improved?
Have your savings increased? Has debt decreased? Has the market changed your projected retirement balance?
Is my budget still working?
Are your spending habits aligned with your priorities?
Is my current strategy creating progress?
If it is, keep going. If not, adjust and continue moving forward.
This quarterly rhythm keeps retirement planning active instead of becoming another document that sits in a drawer collecting dust.
Why These Five Steps Work Together
Notice that none of these steps work well by themselves.
Your retirement vision informs your retirement number. Your retirement number reveals your retirement gap. Your retirement gap tells you where to focus. Your budget gives you the ability to take action. Your quarterly reviews keep everything moving forward.
Each step builds on the one before it. That's what makes this a true retirement process rather than a collection of disconnected financial tasks.
A Simple Retirement Plan Creates Confidence
Most people don't lack motivation. They lack clarity.
When you don't know your next step, everything feels urgent. You worry whether you're saving enough. You wonder if you're behind. You second-guess every financial decision.
But once you understand these five steps, retirement planning becomes much simpler. You stop trying to do everything at once. Instead, you focus on the one action that creates momentum. And momentum is what builds confidence.
Not because everything is perfect, but because you finally know what to do next.
Ready to Build Your Own Simple Retirement Plan?
If you're ready to move from guessing to knowing, start by calculating your retirement number and identifying your retirement gap.
I've created a free Retirement Calculator that estimates where you are today, highlights your retirement gap, and points you toward the area that deserves your attention first.
Then, if you'd like help putting all five pieces together, join my Vision to Action Sprint. Click on the button below. We'll walk through each step of the retirement process, from creating your retirement vision to building a simple retirement plan you can actually follow with confidence.
Retirement doesn't have to feel complicated. Sometimes all you need is the right process and the confidence to take the first step.
