Retirement planning is a journey, not a destination. If you’re dreaming of transitioning out of your career in 2026, it’s crucial to have a smart strategy in place. This 12-step checklist from Laurel Wealth Planning walks you through each step needed to pursue a solid financial future that includes a comfortable retirement.
1. Review/Create Your Retirement Plan
Now is the perfect time to either review or create your 2026 retirement plan. Your plan should cover everything from the exact date of your retirement to your retirement activities. Will you and your spouse be retiring together? Do you want to travel the world, volunteer, or work part-time? It’s critical to be deliberate in this first step because your answers inform the rest of the steps on this list.
Jesse Kuusisto, one of Laurel Wealth Planning’s CFP® wealth managers, explains, “You might think of this as your ‘retirement vision’ or your plan to maintain a comfortable amount of meaning and fulfillment in your life after work.”
2. Think About Increasing Your Saving Amounts
If you’re making more money in the year before retirement and you don’t necessarily need it for everyday needs, consider increasing your contributions to a tax-incentivized retirement plan, like a traditional or Roth IRA, 401(k), or 403(b). For taxpayers over age 50, these accounts provide higher contribution limits, and increasing your contributions can help you save more money for retirement while simultaneously lowering your taxable income.
3. Establish a Reasonable Retirement Budget
It’s so important to create a reasonable retirement budget. When you have more free time, it’s easy to overspend without noticing it. And since your income is fixed, one of the smartest things you can do in the months before the big day is to create a realistic budget you can stick to. Spending too much, even for a short period, can shorten the lifespan of your assets by years.
4. Choose Your Withdrawal Timing
A common misconception among retirees is that as long as they have a sizable amount of money saved, it doesn’t matter how or when they withdraw funds from their retirement account(s). That’s simply not true. Developing a tax-efficient withdrawal plan before retirement can help you strategically withdraw from your various retirement accounts and reduce your tax obligation. “In some cases we see this strategizing alone saves clients tens of thousands of dollars over time,” shares Jesse.
5. Decide On Your Social Security Benefit Claim Date
One of the most important decisions you need to make in the year before retirement is when to start receiving Social Security payments. Depending on your age when you retire, you may be eligible for reduced payments at age 62, full payments at age 67, or increased payments at age 70. If you decide to retire but want to postpone your payments until a later date, you need to make plans for a backup source of income in the interim.
6. Consider Your Life Insurance Requirements
Group and supplemental life insurance policies offered by employers work well during your working. But they often expire at retirement, potentially leaving you vulnerable. If you are part of an employer-sponsored life insurance coverage, now is the time to review your existing policies and future life insurance needs to confirm everything is appropriately covered once you retire.
7. Evaluate Your Medicare Choices
You can sign up for Medicare once you turn 65. If there is a gap between when you plan to retire and when you become eligible for Medicare, you need to get alternative coverage through the Health Insurance Marketplace, COBRA, private insurers, employer retiree insurance, or your spouse’s employment.
“This particular advice is very dependent on your exact personal fact pattern,” says Jesse, “meaning the right coverage for you is often an ‘it depends’ answer, which highlights the importance of careful research in this area.”
8. Assess Your Long-Term Care Needs
Without proper planning, long-term care costs can quickly spiral out of control. Now is the perfect time to evaluate your health needs and consider long-term care insurance to supplement out-of-pocket expenses. As hard as it might be to think about your long-term care needs, planning ahead is a smart strategy for safeguarding your savings as you approach retirement.
9. Sign Up for Employer-Sponsored Healthcare Plans
Before you retire, be sure to utilize any healthcare plans provided by your employer. Also, double-check that your physicals, checkups, and medications are up to date, particularly if you’ve already met your annual deductible.
10. Check Your Estate Plan
Take the time to review your estate plan to verify everything is current. You should have basic estate-planning documents such as a will, durable power of attorney, and healthcare power of attorney. Having these documents in place verifies that your preferences are clearly stated in the event of an emergency.
11. Think About Your Retirement Housing Needs
Take stock of your current residence to determine if it will still make sense in retirement. Ask yourself these questions:
- Is my house too big for me to stay in it?
- Have I wanted to move in the past?
- Will I be able to continue paying my mortgage?
- If I have future accessibility needs, would I have to make major changes to my home?
Your answers to these questions can help you weigh your housing options as you prepare for retirement.
12. Consult a Professional Financial Planning Advisor
Lastly, remember to consult a professional financial advisor as you navigate retirement planning. Even though retirement itself can be a wonderful time, the prior year can often be stressful.
Reach Out Today
The Laurel Wealth Planning team is here to guide you throughout your retirement planning journey.
To schedule a complimentary meeting, email laurel.wealthplanning@laurelwealthplanning.com or call (952) 854-6250.
The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
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Jesse bridges the gap between clients’ personal and financial goals, with focus and energy.
