The Go-Go, Slow-Go, No-Go Framework
Match spending to declining capacity: most during go-go years, least during no-go.
The Go-Go, Slow-Go, No-Go framework divides retirement (and late-career life) into three distinct phases based on your capacity for experiences. Go-go years (typically early retirement or late 40s to mid-60s) are when you have the health, energy, and desire to pursue active experiences: travel, adventure, socializing, new hobbies. Slow-go years (typically 70s) are when health begins to decline noticeably, your bucket list shortens, and close-to-home activities replace far-flung adventures. No-go years (typically 80s and beyond) are when you have very little 'go' left, regardless of how much money you have.
The critical insight is that most people plan their retirement finances as if spending will remain constant throughout all three phases. In reality, data from the Bureau of Labor Statistics and J.P. Morgan shows that spending declines significantly across these phases, even accounting for rising healthcare costs. This means that people who save for constant retirement spending are dramatically oversaving for their slow-go and no-go years.
By front-loading spending into the go-go years and planning for declining expenditure, you can both enjoy more experiences when you have the capacity for them and reduce the total amount you need to save, freeing up resources for experiences during your pre-retirement golden years.
- Retirement spending naturally declines through go-go, slow-go, and no-go phases
- Most people oversave for late retirement because they assume constant spending
- Healthcare costs rise but are more than offset by declining costs in other categories
- The go-go years are the real golden years and deserve the highest spending allocation
- By your no-go years, you are retiring on memories, not on money
- Planning for declining spending frees up resources for your pre-retirement peak years
- Estimate your go-go, slow-go, and no-go year rangesBased on your current health, family history, and medical assessments, estimate when each phase begins for you. Typical ranges are go-go (50-70), slow-go (70-80), no-go (80+), but individual variation is significant.
- Project phase-specific spendingEstimate your annual spending for each phase. Go-go spending should be your highest (travel, activities, socializing). Slow-go spending should be moderate (simpler activities, less travel). No-go spending should be minimal (basic living, healthcare, simple pleasures).
- Recalculate your savings requirementUsing phase-specific spending instead of constant spending, recalculate how much you actually need saved. Most people will discover they need significantly less than traditional advisers suggest, because the expensive years are shorter than assumed.
- Redirect the savings surplus to go-go experiencesThe difference between what you were planning to save and what you actually need can be redirected to experiences during your go-go years, when your capacity for enjoyment is highest.
Perkins' grandmother kept all her furniture covered in plastic to preserve it, making it uncomfortable and unattractive. She took the plastic off only once, for a special occasion, then put it right back. She could not bring herself to consume or enjoy what she had preserved.
Perkins observed his grandmother, who received $10,000 but could not spend it because she had no 'go' left. He also watched his father, too debilitated to travel or enjoy active experiences. These personal experiences combined with retirement planning data confirmed that spending capacity declines dramatically with age.