Key Takeaways:
- There are several retirement planning steps you can take to help strengthen your retirement plan and manage taxes, including reviewing your Social Security statement, rebalancing your portfolio, and making charitable contributions.
- Position yourself for a strong 2026 with strategies such as paying down high-interest debt and automating your retirement savings.
- Schedule a 2025 review with a financial advisor to identify opportunities and risks and discuss changes that may affect your finances and taxes this year.
The beginning of the year is an excellent time to review and ensure your retirement plan is on track. If you’re nearing retirement, here are 10 critical steps you can take this year to strengthen your confidence and help you build a successful, fulfilling retirement.
Step 1: Take Advantage of Catch-Up Contributions
If you turned 50 this year, you may be eligible for catch-up contributions, which help pre-retirees boost their savings before retirement. This can make a significant difference right before you enter retirement. Here are the catch-up contributions amounts for 2026:
| Account Type | Under 50 (standard annual contribution) | Age 50 and older (standard catch-up contribution) | Ages 60–63 (super catch-up contribution) |
| 401(k), 403(b) | $24,500 | +$8,000 = $32,500 | +$11,250 = $35,750 |
| 457(b) | $24,500 | +$8,000 = $32,500 | +$11,250=$35,750 |
| Traditional or Roth | $7,500 | +$1,100 = $8,600 | NA |
| IRA | |||
| SIMPLE IRA | $17,000 | +$4,000 = $21,000 | +$5,250=$22,250 |
What you can do today:
- Find out if your 401(k),403(b), and 457(b) plans have catch-up provisions, as some employer plans do not have the feature.
- Look at your budget and determine how much more you can contribute if you’re eligible.
- You have until December 31 to make contributions to employer plans.
Step 2: Take Advantage of Employer Match
As an employee incentive intended to encourage loyalty and saving for retirement, many employers offer an employer match for 401(k)s. A match is additional funds your company will contribute to your 401(k) in addition to your contributions — essentially free money with guaranteed returns on that contributed portion. Matches typically come with a vesting schedule or timeframe you must remain employed before you “own” 100% of the matched funds.
For example, your company may match 50% of employee contributions up to 6% of your salary:
- Your salary: $100,000
- You contribute 6% or $6,000 to your 401(k)
- Your employer match is 50% or an additional $3,000 to your 401(k)
- Total savings of $9,000 toward retirement
However, even if you contribute less than the full 6% from this example, you can still get a match from your employer. If you don’t contribute at all, you are leaving money on the table, so strive to contribute enough to qualify for a match. For example:
- Your salary: $100,000
- You contribute 3% or $3,000 to your 401(k)
- Your employer match is 50% (up to 6% of your salary) or an additional $1,500 to your 401(k)
- Total savings of $4,500 toward retirement
There are situations in which there are additional considerations, or you may not qualify for a match:
- No employer match: Some companies may not offer a match due to resources, but you can still contribute to a 401(k) or IRA and build toward your retirement.
- Part-time workers: Some companies may require full-time status or a specific number of hours worked before you can be eligible for 401(k) or match benefits. Be sure to check with your company’s plan’s benefits for more information.
- Working multiple jobs: If you have more than one 401(k), contributions and matches are separate for each job but must stay within the annual 401(k) contribution limits across all your plans.
- Self-employed: If you’re self-employed, you may be able to save as both an employer and employee through options such as a SEP IRA or solo 401(k), which may provide additional benefits.
What you can do today:
- Determine if your plan has an employer match.
- Check the match percentage and vesting schedule.
- If you haven’t contributed enough to get a full match, calculate how much you need to contribute and adjust your contributions, as necessary.
Step 3: Review Your Projected Social Security Benefits
Review your Social Security (SS) statement and confirm your earnings history is accurate, make necessary corrections, and begin planning your claiming strategy.
For eligible workers who have paid into the SS system, your monthly benefits depend on when you begin claiming SS:
- Age 62: The earliest age you can claim SS benefits; however, your benefits may be reduced.
- Age 66 (67 for those born after 1960): This is considered full retirement age.
- Age 70: This is the maximum age you can delay claiming benefits to increase your credits or monthly payment amount. Claiming after 70 doesn’t come with any additional benefits.
To optimize the claiming process, if you reach these ages before the end of the year, consider these situations, based on your income and needs:
- If you’re single, you may consider delaying claiming to capture maximum benefits. However, if you need the funds sooner, it may make sense to claim them earlier.
- If you’re married, you can coordinate with your spouse on when to claim benefits. For example, if you’re the higher earner, you may delay taking your benefits to capture the maximum benefits, as well as survivor benefits, while using your spouse’s benefits for income in the meantime.
- If you’re divorced: You may be eligible to claim benefits based on your ex-spouse’s work record, without affecting their benefits. You can also switch to your benefits if they exceed your ex’s benefits; for example, if you delay benefits until 70. Here’s how you may qualify:
- You must be at least 62
- You must have been married to your ex for at least 10 years
- You haven’t remarried
- Your SS benefits are less than what you would have received on your ex’s record (e.g., you earned less or worked fewer years)
- If you’re widowed, you can claim your deceased spouse’s benefits as long as you have not remarried before age 60. You can switch between your benefits if your benefits become higher, and it makes financial sense.
- If you’re still working into your 60s, you may decide to delay claiming your benefits until you’ve reached full retirement age or once you’re 70 to claim the maximum payout amount.
What you can do today:
- Create a Social Security account11 to verify your earnings history and estimate monthly benefits based on different claiming ages.
- Review your spouse’s or ex-spouse’s eligibility.
- With the help of your financial advisor, determine when you and your spouse should claim benefits to maximize your retirement income.
Step 4: Create Your Healthcare Game Plan (Before and After Medicare)
Retirees spend nearly $400,000 on average in retirement on healthcare costs,22 which is why it’s essential to forecast and plan for anticipated expenses. Review your current coverage, estimate your annual costs, and plan for future expenses.
What you can do today:
Under 65:
- Review your current coverage and ensure it still fits your needs and budget.
- If you have a health savings account (HSA) or flex savings account (FSA), consider maxing out your contributions this year.
Over 65:
- Review your Medicare plan.
- If you anticipate changes in your income this year, consult your financial advisor for tax and withdrawal strategies to manage next year’s Medicare premiums.
Step 5: Review Your Investments to Protect What You’ve Built
Review your portfolio allocations to ensure they best reflect your retirement timeline and income needs.
What you can do today:
- Review your current asset allocation and determine if it’s appropriate for your retirement target date or age. If you’re unsure, we recommend consulting a financial advisor or retirement specialist.
- Rebalance your allocations, if necessary, to meet your targets. You can also apply automatic rebalancing to review and adjust your allocation mix, either periodically or when your targets drift beyond certain percentages.
- Manage your risk as you near retirement by considering shifting from high-growth to more stable, income-producing assets.
- Identify gains and losses and explore tax opportunities to help optimize your 2025 tax position.
Step 6: Position Yourself for Success This Year
These two strategies can help strengthen your financial foundation: paying off high-interest debt and automating your retirement savings.
- Develop a plan to eliminate the debt that’s dragging you down. Consider prioritizing paying off high-interest debt, typically tied to credit cards and short-term loans, that can quickly add up. Additionally, if you’ve used a credit card to cover essentials, it’s likely an indicator to review your withdrawal strategy for a more efficient approach.
- Enabling automatic contributions for your 401(k) or IRA is beneficial because retirement savings are automatically deducted from your paycheck — an amount that often goes unnoticed because you didn’t have to do anything manually, i.e., out of sight, out of mind. This can go a long way toward eliminating the guesswork and helping you save for retirement more quickly.
What you can do today:
- Organize all your debt by interest rate and monthly payment to determine your total debt.
- Focus on paying off high-interest debt first, allocating a percentage of your budget to payments.
- Try to avoid taking on new debt. Review your spending and cash flow to avoid unnecessary borrowing. Consult a financial advisor if you have questions or are considering taking on significant debt to explore possible alternative strategies.
- Enable automatic contributions on your 401(k) or IRA.
- Consider scheduling an automatic 1% increase to your contributions every year.
- If you received a bonus or raise, consider whether you can increase your contributions by an additional half percent.
Step 7: Review Charitable Giving and Roth Conversion Opportunities
Charitable gifts and Roth conversions can both affect your taxes and retirement income. While you have until December 31 to employ these strategies, now is the time to assess last year’s strategy and plan ahead. Additionally, with changes under the One Big Beautiful Bill Act, there may be opportunities to plan gifts and conversions more strategically.
What you can do today:
- Review your 2025 charitable giving and Roth activity to determine your current standing and plan for this year.
- With new caps and limitations for high-earners effective in 2026, discuss the tax benefits of bunching several years’ worth of donations or using other tax strategies with your CPA.
Step 8: Review Your Estate Plan
Ensure your estate plan and beneficiaries still reflect your wishes. This is essential, especially if you’ve experienced life changes such as marriage, divorce, the loss of a loved one, or the addition of new dependents or grandchildren.
What you can do today:
- Verify your beneficiary designations on all your retirement accounts and insurance policies.
- Update estate planning documents, such as a will, trust, or power of attorney, to reflect new relationships, life changes, or priorities.
- Discuss significant changes that occurred last year with your financial advisor to determine tax and planning opportunities.
Step 9: Schedule a 2025 Review with a Financial Professional
Getting support and asking for guidance is not only strategic but can help you optimize your investments, reduce taxes, and start this year off strong. Whether your finances have gotten more complex or you’re just unsure of next steps, a financial planner can help provide clarity.
What you can do today:
- Schedule a review meeting to assess your retirement plan and determine if you’re on track.
- Review this checklist to identify risks and opportunities.
- Discuss personal changes coming this year, as well as how your planning may change under new legislation.
Step 10: Build a One‑Year “Retirement Readiness Budget”
As you get closer to retirement, one of the most empowering steps you can take is to practice living on your projected retirement income before you actually retire. Creating a one‑year “retirement readiness budget” helps you test‑drive your future lifestyle, identify gaps, and refine your financial strategy well in advance.
This is especially valuable if you’re unsure how your spending will change, whether your savings will comfortably cover your needs, or how reliable your income sources will feel when your paycheck stops.
A readiness budget helps you:
- Understand what feels realistic—and what doesn’t—long before you retire
- Identify areas where you may want to cut back, add spending, or reprioritize
- Get a clearer sense of how your Social Security, withdrawals, pensions, or annuities will support your lifestyle
- Build confidence that you can maintain (or improve) your quality of life in retirement
- Spot potential cash-flow gaps early enough to make meaningful adjustments
It’s essentially a “dress rehearsal” for the next phase of life.
What you can do today:
- Estimate your expected monthly income in retirement (Social Security, pension, part‑time work, portfolio withdrawals, etc.).
- Create a budget based on that income and try living on it for at least a few months.
- Track where your spending deviates from your plan—those insights are gold.
- Adjust your retirement savings rate, withdrawal projections, or investment strategy based on what you learn.
- Share your findings with a financial advisor to refine your long-term plan.
Ready to Create Your Personalized Retirement Plan?
Retirement affects various areas of your life, so proactive monitoring and refining are necessary, especially at the beginning of the year. We love guiding pre-retirees on their unique path, taking into account their personal goals and circumstances.
As San Diego fee-only financial advisors, we help clients navigate the intricacies of retirement nationwide. We’ve taken the fiduciary oath, we don’t receive commissions, and all our financial advisors are CERTIFIED FINANCIAL PLANNER® certificants. Several of our advisors have additional credentials, making us uniquely equipped to focus on your retirement goals and put your best interests first. If you’re nearing retirement and need guidance, our team of retirement specialists looks forward to learning more about your unique situation. Contact us online or call us to explore more about our team and services.
- The United States Social Security Administration. https://www.ssa.gov/.
↩︎ - Godbout, T. (2024, July 25). Here’s How Much Retirees May Need for Healthcare Costs. National Association of Plan Advisors. https://www.napa-net.org/news/2024/7/heres-how-much-retirees-may-need-healthcare-costs/. ↩︎