Retirement Within Five Years? Six Crucial Steps

Retirement Within Five Years? Six Crucial Steps

March 24, 2023

The five years leading up to retirement are crucial for preparing for this major life transition. Here are some steps people can take during this time:

  1. Create a retirement budget: Develop a realistic budget that accounts for all expenses, including healthcare costs, travel, and other activities you plan to engage in during retirement. Knowing your financial needs will help you better prepare for retirement.

  2. Assess your retirement income sources: Review your retirement income sources, such as Social Security, pension plans, and retirement accounts, and determine how much income they will provide. Consider speaking to a financial planner to help you evaluate your financial situation and identify gaps in your retirement income.

  3. Pay down debt: Try to pay off any high-interest debt, such as credit card balances or loans, before you retire. This will reduce your monthly expenses and make it easier to manage your finances in retirement.

  4. Consider healthcare costs: Healthcare costs can be a significant expense in retirement. Research and compare healthcare plans, including Medicare and Medigap plans, to determine which fits your needs best.

  5. Adjust your retirement investments: As you approach retirement, it may be wise to adjust your investment portfolio to reduce risk and preserve your savings. Consider consulting with a financial advisor to ensure your investments align with your retirement goals and risk tolerance.

  6. Develop a retirement lifestyle plan: Consider how you want to spend your time in retirement and what activities you want to pursue. This will help you plan for the financial and lifestyle changes that come with retirement.

By taking these steps in the years leading up to retirement, individuals can better prepare for a financially secure and fulfilling retirement. 

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax, investment, or legal advice. It may not be used to avoid any federal tax penalties. Please consult legal, investment, or tax professionals for specific information regarding your situation. Mayfair Financial and FMG Suite developed and produced this material to provide information on a topic of interest. FMG is not affiliated with the named state-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.