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The Countdown Begins
If you’re one year away from retirement, now is the time to take a deep breath—and a close look at your financial life. This final stretch is all about preparation. The decisions you make in the months ahead can shape the success of your retirement for decades to come.
Here are five key actions to take in the year leading up to retirement.
1. Update Your Financial Plan
This is the most important step.
Your financial plan needs to reflect your current reality—income sources, expenses, healthcare, inflation, and more. But most importantly, it needs to answer one simple question: Is this sustainable?
We’ve seen time and time again that people underestimate their spending. That can derail even the best financial plans.
So be realistic. Use actual data. Get help if needed. Because the best investment plan in the world won’t work if your spending is out of line.
2. Build Your Withdrawal Strategy
If your income from Social Security, pensions, or rental properties won’t cover all your expenses, you’ll need to withdraw from your investments.
But how you withdraw matters. A thoughtful strategy can help you:
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Avoid running out of money
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Minimize taxes
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Maximize flexibility
This is where a financial advisor can help you determine the best order and timing for drawing from your accounts.
3. Decide When to Take Social Security
When you take Social Security can make a big difference in your lifetime benefit.
Rather than relying on a spreadsheet or breakeven calculator, we suggest taking an integrated approach—one that considers your full financial picture.
For some, delaying benefits might yield more long-term income. For others, claiming earlier could make sense based on health, lifestyle, or spousal needs.
4. Define Your New Purpose
What’s going to get you out of bed in the morning?
We often focus on the dollars and cents—but retirement is a lifestyle shift too. Having something meaningful to look forward to, whether it’s travel, hobbies, volunteering, or part-time work, plays a big role in a fulfilling retirement.
Don’t wait until after your last day of work to figure this out.
5. Review Your Estate Plan and Beneficiaries
Last but not least, update your estate plan.
Make sure your wills, powers of attorney, and healthcare directives are current. Also, double-check your beneficiary designations on IRAs, 401(k)s, and other accounts. These designations override your will, so it’s critical they reflect your current wishes.
The Bottom Line
Retiring is a big decision, and the year before you step away from work is the best time to make sure all your bases are covered.
✅ Is your plan sustainable?
✅ Is your income strategy tax-efficient?
✅ Are your accounts aligned with your goals and your legacy?
Answer these questions now, and you’ll retire not just with confidence—but with purpose.
