If Retirement Is on Your Radar in the Next 5 Years, Here’s What to Consider

Typically, when planning for retirement, the focus is to save as much as you can for as long as you can. But once you get to the point where retirement is five or so years out, the thought process starts to change.

This stage becomes less about building momentum and more about making sure everything is aligned for the transition ahead. A few thoughtful adjustments during these final working years can make a meaningful difference in how comfortable and predictable retirement feels.

If you’re within roughly five years of retiring, here are some areas we think you should revisit:

Start with Your Income Plan
The most important question to start with: where will your income come from once the paychecks stop?

For most people, retirement income comes from a mix of sources: investment portfolios, retirement accounts, Social Security, and sometimes rental income or other assets.

The goal is to understand how those pieces will work together. Determining when to draw from certain accounts, how much to withdraw, and how to structure income can help create a plan that feels sustainable rather than uncertain.

Take a Fresh Look at Your Investments
Your investment strategy doesn’t necessarily need a complete overhaul as retirement approaches, but it can often benefit from a thoughtful review.

During the accumulation years, volatility can be easier to tolerate. But once withdrawals begin, large market swings can have a greater impact on long‑term outcomes.

This is where diversification, risk management, and thoughtful asset allocation become especially important.

Think Carefully About Social Security Timing
When to begin Social Security benefits is one of the more important decisions retirees make.

Claiming earlier provides income sooner but reduces the monthly benefit. Waiting longer increases the monthly amount, but it requires relying on other resources in the meantime.

There’s no universal answer because it depends on your overall financial picture, retirement timeline, and personal priorities. Still, understanding the trade‑offs ahead of time can help you make the decision with confidence.

Plan Ahead for Healthcare Costs
Healthcare tends to become a bigger consideration as retirement approaches.

If you plan to retire before age 65, you’ll want to think about how health insurance will be handled before Medicare eligibility begins. Even after Medicare starts, premiums, supplemental coverage, and out‑of‑pocket expenses should be factored into your retirement budget.

Planning for these costs early can help avoid surprises later.

Review Your Estate Plan
Retirement is also a natural point to revisit your estate planning documents.

Trusts, wills, powers of attorney, and beneficiary designations should reflect your current wishes and family circumstances. Over time, these documents can become outdated without you even realizing it.

A periodic review helps ensure everything remains aligned with your goals.

Don’t Forget the Lifestyle Side of Retirement
Retirement planning is about more than numbers. Although the financial planning component of it is critical, so is determining how you’ll spend your time, where you’ll live, how often you’ll travel, and what activities you’ll pursue. The answer to all these questions will influence the financial structure needed to support your desired lifestyle.

The final years before retirement are an opportunity to bring all the pieces together.

Reviewing income strategies, investment allocations, healthcare planning, and estate documents now can help make the transition feel smoother when the time to retire arrives.

For many people, the goal is to enter the next chapter with a clear plan and the confidence that their finances can support the life they want to live.

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This content is for informational purposes only and does not constitute investment advice