Retirement isn’t just an end—it’s a beginning. It’s your chance to enjoy the freedom you’ve worked for, but only if your money is ready to support that next chapter. Too often, people wait too long to plan or assume it will all work out.
A roadmap can change everything. It helps you stay on track, avoid costly mistakes, and feel confident about the future. If you’re wondering whether you’re really ready, here’s a clear guide to help you find out.
Know What You Need
Calculate Your Target Number
Before you retire, you need to know how much income you’ll need each month. This includes housing, food, insurance, hobbies, and anything else that’s part of your lifestyle. Add up the essentials and the extras. The more accurate your estimate, the better your plan.
Then compare that number to what you’ll have coming in. That includes Social Security, pensions, retirement accounts, and any other income sources. If there’s a gap, you’ve got time to close it. But you need to see it first.
Think About Inflation
Prices don’t stay the same. Gas, groceries, and medical bills will all rise over time. Your retirement plan should account for that. If you retire today, your dollars need to stretch for 20 to 30 years—or more.
Ask your financial advisor how your plan handles inflation. A strong plan includes annual increases in your budget so you don’t fall behind as things get more expensive.
Reevaluate Your Investments
Shift from Growth to Protection
As retirement gets closer, your investment strategy should change. You’re no longer focused only on growth. Now it’s about protecting what you’ve built while still earning enough to keep up with inflation.
Talk to your advisor about adjusting your risk level. That may mean fewer stocks and more bonds or dividend-paying funds. But don’t get too conservative too soon. You’ll still need growth, especially in the early years of retirement.
Create a Withdrawal Plan
How you take money out matters just as much as how you put it in. Ask your advisor to help you plan when and where to withdraw funds. Should you pull from your IRA first? Or your taxable account? The order affects your taxes and how long your money lasts.
A withdrawal plan also helps you avoid running out of money. The goal is to find a balance that meets your needs now without draining your future.
Understand Healthcare Costs
Prepare for Medicare and More
Once you turn 65, Medicare becomes your primary coverage. But it doesn’t cover everything. There are premiums, deductibles, and services that fall outside the system. You may need a supplemental plan to fill in the gaps.
Estimate what healthcare will cost each year. Include dental, vision, and long-term care if you expect to need them. Don’t wait until an emergency to find out you’re not covered.
Consider Long-Term Care
Many people ignore long-term care until it’s too late. But the cost of assisted living or in-home care can drain your savings quickly. Look into insurance options or savings strategies that can help cover this if needed.
A long-term care plan gives you and your family peace of mind. It means fewer tough decisions later and more control over your care.
Make a Debt Strategy
Reduce or Eliminate What You Owe
Debt can take a big bite out of your retirement income. High-interest loans, credit card balances, or even a mortgage can make your budget tight. If possible, try to pay off as much as you can before retiring.
Start with the debts that cost you the most in interest. Then work your way down. Every dollar you free up is one more you can spend on the life you want.
Avoid New Debt
Once you’re on a fixed income, it’s harder to manage debt. Plan big purchases carefully. And avoid using credit to cover everyday expenses. A solid budget will help you live within your means without sacrificing your lifestyle.
Revisit Your Estate Plan
Keep Documents Updated
Retirement is a good time to check your will, power of attorney, and beneficiary designations. Make sure everything reflects your current wishes. If you haven’t reviewed these in a few years, set a date to do it now.
This isn’t just for the wealthy. Everyone needs a plan for what happens to their assets—and their care—if something goes wrong. It protects your loved ones and your legacy.
Talk to Your Family
Don’t keep your plans a secret. Have open conversations with your family about your wishes. Share where documents are stored and who to contact in an emergency. This kind of transparency can prevent confusion and conflict later on.
Retirement success doesn’t come from guessing—it comes from planning. Use this roadmap to check your progress and fine-tune your plan. The future is yours to shape, and with the right steps, you’ll be ready to enjoy every moment of it.
