Most people think of Social Security as money that covers the bills and not much else. But if you’ve planned well and find yourself with a little breathing room after covering the essentials, your monthly check can do more than just keep the lights on. In 2026, retirees are dealing with higher interest rates, longer lifespans and more flexible retirement lifestyles than previous generations. For those who don’t need every dollar from their Social Security payments, there are some smart ways to put that ex ...

Core Insights - The article emphasizes the importance of flexible financial planning for retirement, highlighting strategies to manage spending, investments, and tax implications effectively [1][4][5]. Group 1: Financial Planning Strategies - Stoy Hall, CEO of Black Mammoth, discusses the significance of adjusting spending according to income and market conditions, advocating for a flexible withdrawal strategy rather than adhering to fixed percentage rules [1]. - Derrick Kinney suggests a practice-retirement budget 12–18 months before actual retirement to assess living expenses, which can lead to earlier retirement or extended working years based on individual financial situations [2]. - Stephanie McCullough emphasizes the need to differentiate between long-term and short-term money as retirement approaches, recommending that funds needed within the next five years should be kept in low-risk investments [6]. Group 2: Tax Management in Retirement - Carolyn McClanahan points out that retirees often delay withdrawals from retirement plans until required distributions, which can lead to higher tax brackets later on, stressing the importance of early tax planning [4]. - The article advises retirees to utilize the 10% and 12% tax brackets effectively in the early years to minimize future tax burdens and potentially delay Social Security benefits [5]. Group 3: Healthcare and Long-term Care Planning - Hall recommends pre-funding a Health Savings Account (HSA) before retirement to cover healthcare costs tax-free, and planning for long-term care either through self-funding or insurance [8]. - The article discusses the financial benefits of aging in place, suggesting that downsizing can reduce home maintenance costs and long-term care expenses [7][8]. Group 4: Legacy Planning - Bill Perkins' philosophy, as mentioned by McCullough, encourages making substantial gifts to beneficiaries during one's lifetime rather than prioritizing a legacy at death, which can be uncertain [9].