Retirement isn’t just a date on the calendar—it’s a lifestyle shift that needs smart planning and intentional decisions. While automatic savings plans have likely carried you this far, the final stretch demands a more hands-on approach.
Christine Benz, Morningstar’s director of personal finance, says the five years before retirement are crucial. It’s the perfect window to fine-tune your strategy and make any necessary adjustments before you take the plunge.
Here are five key moves to make now:
- Rethink Work in Retirement
Will you work part-time, freelance, or consult? Supplemental income can help, but don’t depend on it entirely. Health or market changes may derail even the best-laid plans. - Track and Project Your Expenses
Get clear on how much you’re spending now and what that might look like in retirement. Will you travel more? Downsize? Understanding your needs is essential to knowing if your nest egg is enough. - Audit Your Social Security
Create an account at SSA.gov to verify your records and model different claiming strategies. Timing matters—starting too early could reduce your benefit for life. - Gauge Your Portfolio Readiness
Take your projected expenses, subtract your expected Social Security, and compare the rest to your portfolio. If you’d need to withdraw more than 4% annually, you may need to save more, spend less, or delay retirement. - Dial Down the Risk
Market dips early in retirement can be devastating. Shift some assets into safer vehicles now, so you’re not forced to sell stocks in a downturn.
Bottom line: Retirement success starts before retirement begins. These five steps can help you retire with confidence—not guesswork.