When you are about ten years away from retirement, the questions tend to get more specific, and the stakes feel a bit higher. You may be wondering, “Am I where I should be?” or “What steps should I be taking now to feel more confident when I retire?”
Ten years may seem like plenty of time, but when it comes to retirement preparation, these years often go by quickly. The actions you take today can help influence your options later.
When do you want to retire, and does your timeline make sense?
Whether you’re aiming to retire at 62, 65, or later, setting a realistic timeline is helpful. Consider your health, career goals, savings progress, and whether early retirement would reduce benefits like Social Security or pensions. Your timeline should reflect your lifestyle goals.
How much income will you need at retirement?
Retirement expenses can differ from your current spending. You might eliminate work-related costs but increase spending on travel or healthcare. A good rule of thumb is to aim for 70–80% of your current income, but that can vary. Creating a detailed retirement budget can help you determine a more accurate number. Use this calculator to gain insights into what your financial picture could look like in retirement.
Are you improving your savings opportunities?
If you’re 50 or older, you can make catch-up contributions to your 401(k) and IRA. These extra savings can add up in your final working years. It’s also a good time to reduce debt and increase emergency savings as you prepare for a fixed income.
Have you planned for healthcare expenses?
Even with Medicare, out-of-pocket healthcare costs in retirement can be costly. Now is the time to research supplemental insurance options, consider long-term care planning, and explore health savings accounts (HSAs) if available.
Is your estate plan up to date?
Review your will, powers of attorney, healthcare directives, and beneficiaries. If you haven’t created a trust or don’t have a strategy for transferring assets efficiently, this is the time to have those conversations. These conversations are not always easy, but they are important. Your financial plan should reflect the legacy you want to leave behind. Looking to learn more about estate planning? Read more here.
Are you financially and emotionally prepared?
Retirement is a life transition. Think about how you’ll spend your time, where you’ll live, and what will give your days purpose. Whether that includes travel, volunteering, part-time work, or family time, a strong financial foundation can support your vision.
If you have questions or would like to begin a conversation with our team, reach out to one of our offices in Illinois, Iowa, Massachusetts, Michigan, or Wisconsin.
If you’re looking to take the next step, our team can help you evaluate where you stand today and what to prioritize next.
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