What Should I Do 10 Years Before Retirement?

The decade leading up to retirement is one of the most important financial planning periods of your life. The decisions made during this time can significantly influence retirement income, tax exposure, healthcare costs, investment strategy, and long-term financial confidence.

Whether retirement feels close or still years away, starting early provides greater flexibility and more opportunities to make informed, strategic decisions.

Below are key steps to consider as you approach retirement.

1. Clarify Your Retirement Goals

Start by estimating how much you will need each month to cover essential expenses in retirement, often referred to as your income replacement ratio.

Review your current take-home income and adjust for expenses that may no longer apply, such as mortgage payments or education costs. Be sure to account for inflation, as today’s expenses will likely be higher in the future.

Once core expenses are defined, consider what your ideal retirement looks like. Whether that includes travel, hobbies, or more time with family, assigning timelines and estimated costs to these goals can help personalize your plan and determine what may be needed to support your lifestyle.

2. Develop a Retirement Income Plan

Retirement planning is not just about accumulating assets. It is about creating a sustainable income stream.

While investment portfolios often play a central role, they are only one part of the income equation. Other components may include Social Security, pensions, and part-time income.

Important decisions to evaluate include:

• When to begin Social Security benefits
• How to improve pension options, if applicable
• The potential impact of part-time work in retirement

A well-defined income strategy can help provide greater clarity, stability, and more confidence as you transition into retirement.

3. Improve Retirement Contributions

Many individuals enter their peak earning years in their 50s, making this a valuable time to increase savings.

Start by ensuring you are fully capturing any employer match in your retirement plan. From there, consider working toward improving contributions:

• 401(k) contribution limit, 2026: $24,500
• Additional catch-up contributions are available for those age 50+

Some employer plans also allow after-tax 401(k) contributions beyond standard limits. When paired with an in-plan Roth conversion or rollover to a Roth IRA, this strategy, often referred to as a “mega backdoor Roth,” can significantly increase tax-advantaged assets over time.

For individuals approaching retirement, new rules may also expand contribution opportunities. Ages 60–63 may qualify for enhanced “super catch-up” contributions, allowing higher savings limits during these critical pre-retirement years.

Depending on your situation, evaluate whether pre-tax or Roth contributions best align with your long-term tax strategy. Higher-income earners may also be required to make catch-up contributions on a Roth, or after-tax, basis.

4. Reevaluate Your Investment Strategy

Your investment approach should evolve as retirement approaches.

This does not necessarily mean becoming overly conservative, but it does require a careful review of:

• Portfolio diversification
• Risk exposure
• Time horizon
• Income needs
• Tax efficiency

An effective investment strategy should align with both your retirement timeline and long-term objectives.

5. Plan for Healthcare Costs

Healthcare is often one of the largest and most underestimated retirement expenses.

A key consideration is Medicare eligibility at age 65. If you plan to retire earlier, you may need to bridge the gap with COBRA, marketplace plans, or spousal coverage.

When preparing for Medicare, it is important to understand what is and is not covered, whether supplemental coverage is appropriate, and how premiums are calculated.

Medicare premiums are income-based, meaning higher taxable income can result in surcharges, known as IRMAA. Proactive planning can help manage these costs.

6. Review Estate Planning Documents

Retirement planning should also include reviewing your estate plan and beneficiary designations.

Consider working with an estate planning attorney to establish or update:

• A will
• Powers of attorney
• Healthcare directives

Depending on your goals, you may also explore trust strategies or revise beneficiary designations. As life circumstances evolve, your estate plan should evolve with them.

Preparing for Retirement Starts Earlier Than Most People Think

Retirement planning is not just about reaching a specific number. It is about preparing for the next stage of life with intention, flexibility, and more confidence.

Starting 10 years in advance can allow time to evaluate opportunities, make adjustments, & build a strategy aligned with your personal and financial priorities.

At SkyCrest Financial Group, we help individuals and families navigate retirement planning, investment decisions, and long-term strategies, so they can move forward with clarity and more confidence.