Nearing Retirement? Here’s What You Need to Know
Getting older can make retirement feel much more real. What once seemed decades away may
now be only 10 to 15 years down the road. That does not mean you need to have every detail
figured out, but it is a good time to start getting your financial life organized and thinking
seriously about what you want retirement to look like. The decisions you make during your 50s
can have a significant impact on how prepared you are when the time comes to leave the
workforce.
A good place to start is simply getting organized. Gather important financial documents such as
recent tax returns, retirement account statements, brokerage statements, Social Security
information, insurance policies, and records of any outstanding debts. It is also a good idea to
review your credit report and make sure the information on it is accurate. Next, take inventory of
what you actually own and owe. Add up retirement accounts, investments, savings, home equity,
and other major assets, while also looking at your mortgage, credit cards, auto loans, and other
liabilities. Having everything in one place gives you a much clearer picture of where you stand
today and what may need attention before retirement.

Retirement planning is not just about reaching a certain number in your investment accounts.
You also need to consider what you want those savings to pay for. Someone who plans to travel
frequently may have very different needs than someone who expects to spend most of retirement
close to home. One common starting point is to consider whether you could comfortably live on
roughly 70% to 90% of your pre-retirement income. Your actual needs could be higher or lower
depending on your lifestyle, housing situation, healthcare expenses, and other factors. Creating a
rough retirement budget now can help you identify the gap between the lifestyle you want and
the resources you are currently on track to have. Retirement could last 20 years or longer, which

means your investments may still need to grow even after you stop working. At the same time,
someone approaching retirement may not want to take the same level of investment risk they
were comfortable with at 30 or 40.

This can be a good time to meet with a financial professional and review how your retirement
accounts and other investments are allocated. Depending on your circumstances, that could mean
adjusting the risk tolerance of your investments. A professional can also help you establish new
savings and investment goals based on your expected retirement date, income needs, and current
financial position.

Healthcare can be one of the more stressful parts of retirement planning, particularly for people
who have received health insurance through their employer for most of their working lives.
Medicare eligibility generally begins at age 65, so someone hoping to retire earlier also needs to
think about how they will obtain coverage during the years before Medicare begins. Medicare
itself comes with important choices involving enrollment, coverage options, supplemental
insurance, and prescription drug coverage. Learning about those options before retirement can
make the transition easier. A qualified professional can help you understand how healthcare costs
and Medicare may fit into your broader retirement plan.

Finally, as you approach retirement, it could be a good time to revisit the financial protections
you already have in place. Review any life insurance policies to determine whether the amount
and type of coverage still fit your family’s needs. If your circumstances have changed
significantly since you purchased a policy, your coverage may need to change as well.

Estate planning deserves attention too. If you already have a will or other estate documents,
review them and make sure they still reflect your wishes. Check the beneficiaries listed on

retirement accounts and insurance policies as well. If you have never created an estate plan, now
is a good time to begin discussing one with an appropriate professional.

Retirement planning is less about having everything figured out and more about making sure you
are moving in the right direction. Getting organized, defining the lifestyle you want, reviewing
your investments, preparing for healthcare costs, and updating your insurance and estate plan can
give you a much clearer picture of the years ahead. The earlier you address these areas, the more
time you have to make adjustments and work toward the retirement you want.