Steps to prepare for retirement

Your financial, social, and wellness needs should be taken into account during your countdown to retirement. Of course, you’ll have your own personal goals, but the milestones below can help you set your focus, organize your activities, and feel more confident that you’re thinking about the right aspects of retirement planning, right now. 

10 to 15 years to retirement

When you’re approaching the 10 to 15-year mark before retirement, it's time for you to focus on establishing a solid foundation. This means trying to pay off any debt, building your savings, growing your social connections, and maintaining good health.

Financial—clean up debt and accumulate savings

• Save as much as possible
• Consider increasing your retirement account contribution rate each year, possibly automatically
• Monitor debt and create a strategy to keep it manageable
• Check your emergency savings and replenish if needed
• Take advantage of time, and choose investments that fit your long-term goals

Social—expand your network

• Dive into your interests to find out what really inspires you
• Use your interests to kickstart social and learning opportunities—both in person and online

Wellness—rest up and recharge

• Get plenty of sleep to stay sharp and productive
• Find a balance of work and leisure that works for you

5 to 10 years to retirement

With retirement 5 to 10 years away, focus on keeping your retirement goals on track and your well-being intact. Consider increasing your savings, streamlining your finances, strengthening your relationships, and staying active.

Financial—accumulate savings and simplify managing your money

• Save as much as possible—and put more away each year
• Keep your debt manageable and your emergency savings replenished
• Establish a preretirement savings goal that’s tied to your income target
• Make achievable short-term savings goals if you’ve fallen behind on your plan 
• Consider consolidating your retirement savings accounts¹

Social—partner for results

• Discuss your retirement vision with your partner or loved ones
• Reinforce your important relationships through shared goals and planning

Wellness—keep on moving

• If you have good exercise habits, keep them up and set new goals
• If it’s been a while, take that important first step—and consider using a wearable activity tracker for inspiration

1 to 5 years to retirement

As retirement nears within 1 to 5 years, it's time for you to fine-tune your financial strategy, explore new interests, and commit to healthy habits that support a fulfilling and secure transition into retirement.

Financial—accumulate savings, dial up safety, and begin to transition

• Continue saving as much as possible
• Shift toward late-stage investing—consider a strategy with lower risk and more moderate growth potential
• Centralize information on your future retirement income sources, including retirement savings, pensions, and Social Security
• Consider your Social Security options and apply for Medicare when eligible (usually at age 65)
• Factor in the taxes you expect to pay on your retirement income and investments

Social—expand your outlook

• Explore new sources of fun and fulfillment
• Find purpose in causes and activities beyond your career

Wellness—commit to maintaining good health

• Make sustainable changes to your diet, sleep, and exercise that’ll lead to better health
• Keep up with regular health appointments and visits

1 year or less to retirement

With retirement just around the corner, focus on reviewing your financial plans, strengthening your social connections, and embracing the opportunity to enjoy the lifestyle you've been working toward.

Financial—focus on the future

• Closely review your monthly budget and spending
• Decide how you’ll collect Social Security—early, at retirement age, or with a delayed start
• Make sure your investments align with your current needs and investor profile
• Tighten up your income strategy, including estimated expenses, withdrawals from retirement savings accounts, pension payments, Social Security, and other income sources
• Determine when you need to start taking required minimum distributions from your retirement account²  

Social—stay connected

• Consider part-time work or volunteer opportunities
• Prioritize family relationships and friendships

Wellness—enjoy life

• Set aside time and money to do the things you love
• Enjoy the lifestyle you worked so hard to achieve

A preretirement checklist helps you stay on track

Retirement is one of life’s biggest transitions, and planning for it can feel overwhelming. Getting ready isn’t just about finances—it’s about creating a life that feels secure, connected, and fulfilling. Planning ahead at different time horizons can help you stay organized, set goals, and move confidently toward the retirement you’ve dreamed about. 

1 As other options are available, such as leaving it in your old plan, rolling over to an IRA, or cashing out, you are encouraged to review all of your options to determine if combining your retirement accounts is suitable for you. 2 You generally must begin taking required minimum distributions at age 72 if you were born from 7/1/49 to 1950. The age increases to 73 if you were born from 1951 to 1959, and age 75 if you were born in 1960 or later.  Please consult a financial professional to help determine your starting age.

Investing involves risks, including the potential loss of principal. There is no guarantee that any investment strategy will achieve its objectives.