The moving truck pulls away. Your youngest gives you one more hug before driving off to their new apartment. You walk back inside and notice something different. The house feels bigger than you remember. Wider hallways. Quiet that feels almost too quiet.
This isn't just an emotional shift. It's a financial one. And what you do with this new financial flexibility could completely reshape your retirement.
That grocery bill that used to feed four? Probably cut in half now. And your car insurance bill looks a lot better without a teenage driver on the policy.
Every household is different, but here is an example of how much you could save each month:
This money will either slip into your everyday spending or go toward retiring sooner.
For example, if you invest $800 of those monthly savings for 10 years at a 7% return, that's $138,000 added to your retirement. That is a massive boost just from redirecting money you were already spending!
Now that you've identified the extra funds, where should they go?
If you are 50 or older, the IRS lets you contribute more through catch-up contributions. You can add $7,500 beyond the standard limit in your 401(k). For IRAs, add an extra $1,000 on top of the base limit. If you are between 60–63, you qualify for enhanced catch-up limits that let you contribute even more.
This money reduces your taxable income, so you are only paying taxes on what is left. However, to get the most mileage out of those extra dollars, you should prioritize your accounts strategically.
Financial planners often recommend this order of operations:
Once you have your savings strategy set, talk to a financial advisor about balancing growth with protecting what you have saved. They can help you figure out the finish line.
When can you actually retire? It comes down to three numbers: what you've saved, what you need annually, and what you'll get from Social Security.
Here's the math. Start with your annual retirement expenses. Subtract your expected Social Security benefit. Multiply what's left by 25. That's roughly what you need saved.
Example: You need $60,000 per year. Social Security will pay $24,000. You need $36,000 from savings. Multiply $36,000 by 25 = $900,000.
Look at your actual budget to see what retirement will really cost. Without kids at home, your expenses will look different.
You can claim at 62, but your benefit drops by 30% permanently. Wait until 67 (full retirement age for most Gen Xers) and you get 100%. Delay until 70 and you earn an extra 8% per year.
If your full benefit is $2,000 per month, claiming at 62 drops it to $1,400. Waiting until 70 raises it to $2,480.
The difference between claiming at 62 versus 70 is $1,080 a month. Over 20 years, that adds up to over $250,000.
P.S.: You don't have to retire when you claim Social Security. Some people retire at 64, live off savings for six years, then claim at 70 to maximize their benefit.
If you retire before 65, you need a healthcare plan until Medicare starts. This is often the biggest surprise expense for early retirees. To stay covered during this interim period, you generally have two primary options:
Some people work part-time specifically for health benefits until they reach 65. It's not for everyone, but it solves the coverage gap.
The math on downsizing is straightforward. Smaller home means lower taxes, cheaper utilities, less maintenance. Downsizing can free up $150,000 to $300,000 in equity for retirement.
But downsizing isn't automatic. Maybe you want space for visiting family. Maybe you've paid off your mortgage and moving feels like a hassle. Maybe you love your neighborhood and community connections.
If you are considering a move, keep these factors in mind:
Before you decide, rent in your target location for a month. Visit during off-season, not just peak vacation time. Check healthcare access, especially if you have specific medical needs. Research how easy it is to make friends and build community.
State taxes matter, but so does quality of life. Saving money in a place you don't enjoy isn't much of a retirement.
Retirement planning is personal. It’s not a one-size-fits-all checklist, and that’s where guidance matters.
CCCU can help you turn these ideas into a clear, workable plan, with:
You don't need to have everything figured out before you start. You just need a clear next step.
Your kids are building their own lives. Now it's your turn. The path forward is clearer than it seemed at the start — and you've got the tools to make it happen.
Ready to build your retirement plan?