The years leading up to retirement are your final opportunity to fine-tune your plan and catch small issues before they become big problems. A thorough pre-retirement checkup can mean the difference between a comfortable retirement and one filled with unnecessary stress.
Here’s a quick checklist to review now:
1. Savings Rate and Nest Egg Progress
Are you on track to replace 70–85% of your pre-retirement income? Run updated projections that include current savings, expected Social Security, and pensions. If you’re behind, consider catch-up contributions (age 50+ allows extra IRA and 401(k) deposits) or delaying retirement by 1–2 years.
2. Debt Elimination Strategy
Aim to enter retirement with minimal or no high-interest debt. Focus on paying off credit cards, car loans, and ideally your mortgage. Lower debt means less pressure on your portfolio withdrawals.
3. Investment Risk Adjustment
Many people are still too aggressive five years from retirement. Gradually shift toward a more balanced or conservative mix to protect against sequence-of-returns risk. Review asset allocation and consider adding guaranteed income options like fixed or indexed annuities for a reliable base layer.
4. Life Insurance and Protection Review
Do you still need your current coverage? As kids become independent and debts decrease, you may be able to reduce or convert term policies into permanent ones for estate planning or long-term care benefits. Check beneficiaries and policy performance.
5. Tax and Withdrawal Planning
Start modeling how you’ll withdraw from accounts in retirement. Strategic Roth conversions in lower-income years can reduce future taxes and RMDs. Also review Social Security claiming strategies — delaying until 70 can significantly boost lifetime benefits.
Bonus Items to Check
- Healthcare gap planning (Medicare doesn’t start at 65 for everyone)
- Emergency fund size (aim for 12–24 months of expenses)
- Estate documents (wills, trusts, powers of attorney)
Action Steps
- Gather your latest statements and run fresh retirement projections.
- Schedule a professional pre-retirement checkup — ideally with a Financial Professional who can stress-test multiple scenarios.
- Address any gaps you find now, while you still have time to adjust.
Taking these steps early gives you greater confidence and more options. Many clients discover they can retire sooner or more comfortably after a simple review.
Next Step: Contact our office for a complimentary Pre-Retirement Checkup. We’ll review your full picture — including retirement accounts, life insurance, and annuity options — and create a clear action plan at no cost.