More than a third of Americans say they want an ‘adventurous retirement’

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Retirement is no longer just about rocking chairs, gardening, grandchildren, or afternoons on the golf course.

Instead, it's evolving from what many consider a traditional retirement into something much more dynamic, said Andy Smith, executive director of financial planning at Edelman Financial Engines.

“I think it's important that people remember that there is no one-size-fits-all solution to retirement, to retirement planning,” Smith said in a recent episode of the Decoding Retirement podcast (see video above or listen below). “There's no one right way to retire.”

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Historically, many saw retirement as a time to focus on relaxation and family, he added. But that vision is changing.

“Nearly four in 10 Americans, about 39% of respondents, said that they want this adventurous retirement,” Smith said, citing the firm's Everyday Wealth in America report. “And 42% of respondents said that they wanted to stay active. There is this growing number who are thinking about or even envisioning this minimalist or even nomadic lifestyle.”

This shift requires both retirees and advisers to rethink how they plan for income and expenses. Instead of a linear, one-time retirement transition, planning needs to account for whether retirement unfolds all at once or in phases, Smith said.

Will there be part-time work, consulting, or income from travel or passion projects? How often will you travel, and during what part of the year? These questions impact not just your budget, but how and when you withdraw your money.

Previously, the conventional approach was to estimate a retirement nest egg, adjust for inflation and taxes, and draw down steadily. But that approach is giving way to a segmented plan, Smith said.

“What will the first three to five years look like? What about the next three to five?” he asked. “And if people can see how that manifests over time, then they can feel a lot more comfortable about spending different dollars in different ways.”

Smith noted that one challenge begins once you retire: deciding how to withdraw from a mix of accounts — Roth IRAs, traditional 401(k)s, HSAs, brokerage accounts, and Social Security — without triggering unnecessary taxes.

The key, Smith said, is having a comprehensive financial plan. “You have to figure out what you have and how much you have before you can ever build this sort of roadmap.”

That means understanding your full financial picture, including your income sources, expected benefits, expenses, and how your assets are structured across account types. Without that foundation, it's impossible to build an effective, tax-efficient withdrawal strategy.

Early in retirement, before Social Security or pension income kicks in, you might find yourself in an unusually low tax bracket. “It could be the lowest bracket that you've ever been in in your entire life,” Smith said.

That could make it a smart time to draw from traditional IRAs or 401(k)s before reaching the required minimum distribution (RMD) age, allowing you to “fill up” lower tax brackets and avoid higher taxes later.

Once guaranteed income begins, your strategy may shift. Tapping brokerage accounts could be more efficient since long-term capital gains are often taxed at 15% or even 0% for lower earners. For 2024, Smith noted, single filers earning under $48,000 and married couples earning under $96,000 may qualify for the 0% capital gains rate.

An older couple traveling in a classic convertible MG automobile on a two-lane rural highway. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images) · UCG via Getty Images

Creating a tax-efficient withdrawal plan is just one part of the retirement equation. Selecting the right income strategy, whether it's the 4% rule, bucket planning, annuities, or a hybrid approach, is equally critical.

This is where professional help comes in.

“I think it's imperative that people absolutely consider working with a professional,” Smith said. “This is not just an investment management game anymore. This is holistic financial planning, because if it has a dollar sign, this is going to be important for you to try to figure out.”

Smith encouraged retirees to ask the right questions when choosing a financial adviser:

“Are you a fiduciary?”
“How much is it going to cost, total?”
“What happens to me if something happens to you?”

Ultimately, the goal is to turn your life savings into a reliable, tax-smart retirement income stream. “As you retire, you have this wealth that you've spent a lifetime building,” Smith said. “Now it's your job not to keep saving it, but to know: How do I draw that down? Where do I pull the money? How do I pull the money? When, and how much?”

More than a third of Americans say they want an 'adventurous retirement'

Smith reflected on how his own unexpected path from wilderness emergency medicine to financial planning helped him learn key lessons.

“There was a time in my life when I was seriously considering becoming a mountain guide,” he said.

That training was rigorous, with mornings in the lab and afternoons in hands-on fieldwork. But Smith said he learned to “plan for the worst, hope for the best, and don't be disappointed with averages.”

That philosophy carries over to retirement planning.

“We were big on planning your work and working your plan,” Smith said. “These are not set-them-on-the-shelf-and-forget-about-them sorts of plans. These are living, breathing documents that you go back to.”

And most importantly, he continued, “Don’t just build the plan — test it, because what looks good on paper, what looks good in a classroom doesn't always work on the side of a mountain when it's 10 degrees below zero.”

Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service.