I’m going to go ahead and guess they do it by downsizing their lifestyles. Selling houses, cottages, boats, finding a cheap one bedroom, that sort of thing.
Thing is, the entire ‘retirement’ construct is in flux. Time was when company pensions were standard, people stayed at jobs for decades, and those pensions were protected from appropriation.
There was a time when people would under take big ticket items, home repairs, car replacements before retiring. You don’t hear of it much any more.
Retirement used to resemble, cottaging in summer, wintering in Florida, visiting friends and relatives, possibly liquidating the family home to finance.
These days people are more active, they want to trek the Inca Trail, and maintain their lifestyles and second homes unchanged.
That’s what I see anyway. Retirement is clearly not going to be what it was for our grandparents, and likely not even our parents. It would seem that enormous change may be upon us.