If you’re getting close to retirement, today’s economy may feel unsettling. Between rising prices, fluctuating markets, and uncertainty about interest rates, it’s common to wonder whether your retirement plans are still on track.
The good news is that with some proactive steps, you still have time to address your financial concerns.
Here are ten strategies to consider:
1. Revisit Your Retirement Timeline
Take a fresh look at when you’d like to retire and whether your current savings align with that goal. Even waiting just one or two extra years can make a meaningful difference in the quality of your retirement.
2. Test Your Plan Against “What Ifs”
Prepare for surprises. Ask yourself how your retirement income would hold up if inflation stays high or markets remain choppy. Stress-testing your plan can help you visualize what happens in different environments.
3. Diversify Your Income Sources
Think beyond just your 401(k), IRA or Social Security. Taxable accounts, health savings accounts, pensions, or even part-time work can all provide additional income that can change your distribution rate.
4. Maximize Social Security Benefits
The timing of when you claim Social Security matters. Waiting longer can increase your monthly check for life—something worth exploring if you can afford to wait.
5. Adjust Your Investments
As you approach retirement, it’s important to reduce risk, but not eliminate potential growth. A balanced portfolio can help you weather market swings while still keeping up with inflation. People are living longer and money has to last a long time in retirement.
6. Keep Cash on Hand
Consider the timing of your cash needs. You may need to set aside funds for living expenses in cash or short-term investments. That way, you won’t need to sell investments at the wrong time.
7. Tackle Debt
Paying down high-interest debt before retirement can free up more income for the things that matter most in your next chapter.
8. Prepare for Healthcare Costs
Healthcare is one of the biggest retirement expenses. Reviewing your Medicare options and planning ahead for long-term care can help protect your assets. In our Financial plans we put 4-5 years of hefty medical and long-term care expenses in the later years.
9. Plan Smart Withdrawals and Taxes
Strategic withdrawals can help lower your tax bill. Planning distributions from certain accounts in certain years can stretch your savings further.
10. Check In Regularly
A retirement plan isn’t “set it and forget it.” Revisit your plan every year to make adjustments as the economy and your life evolve. You never know what can change.
Bottom Line: Don’t wait until you retire to plan for it! Being proactive and having everything in place can make it less stressful for you and your family in the future.