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Retirement planning doesn’t have to be all spreadsheets and stress. In fact, some of the smartest steps people take are the ones that bring them peace of mind later on.
GOBankingRates spoke to Denis Shirshikov, professor of finance and head of development and engineering at the City University of New York. growthlimitSharing financial decisions is what clients say they are most grateful for.
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quickly separating spending from savings
“My experience advising individuals with different income levels has shown me that retirement success is usually driven by a few early, deliberate decisions rather than complex financial engineering,” Shirshikov explains.
According to him, there was one financial step in particular that his clients took that made their retirement planning a lot easier.
“The most impactful move was to establish a clear separation between lifestyle spending and long-term investments early in his career,” he said.
He reported that customers who treated retirement contributions as non-negotiable as taxes avoided constant recalculation later.
“This creates predictability and reduces stress as retirement approaches,” he said.
stick to a diversified strategy
Shirshikov said clients who simplified their investment strategy benefited the most.
Instead of chasing performance or re-allocating frequently, they focused on a diversified, long-term portfolio aligned with their time horizon.
“This reduces emotional decision making and prevents costly timing mistakes during market fluctuations,” he said.
Dealing with High-Interest Debt Quickly
Shirshikov equally noted that customers who prioritized reducing high-interest and lifestyle-driven debt well in advance of retirement had far greater flexibility.
Fewer fixed obligations meant that their retirement income did not need to grow as much, which preserved optionality around housing, health care, and travel decisions.
In addition to the financial benefits, moving forward with the loan also reduced stress and gave them a sense of control over their long-term plans.
Making Planning a Regular Habit
A habit of planning helped Shirshikov’s clients feel more confident entering retirement.
“Regular financial checks were important,” he explained.
He said customers who revisit their plan annually, even if briefly, are able to make corrections gradually rather than reacting under pressure.
This habit turns retirement planning into an ongoing process rather than a last-minute event.