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Financial Preparation Checklist for the Decade Before Retirement

A structured checklist covering savings, insurance, debt, and planning milestones to work through in the ten years before you stop working.

Finance Editorial Team
5 min read · Nov 24, 2023
Financial Preparation Checklist for the Decade Before Retirement

Photo: seetrueworth.net editorial

—— In This Article
  1. Why the ten-year window matters
  2. How to use this checklist

Key Takeaways

  • The decade before retirement is the best window to correct savings shortfalls and reduce debt.
  • Knowing your projected Social Security benefit and any pension income is a prerequisite for realistic planning.
  • Healthcare costs are typically the largest unplanned expense in retirement; insurance gaps need attention early.
  • Estate documents, beneficiary designations, and account titling are frequently overlooked but matter greatly.
  • A licensed financial adviser or fee-only planner can review your specific situation before you make irreversible decisions.

Why the ten-year window matters

Retirement planning is not a single event. It is a series of decisions made over time, and the ten years before you stop working carry unusual weight. Contribution limits are higher for workers 50 and older: the IRS allows catch-up contributions to 401(k) plans and IRAs above the standard annual limits, which can meaningfully increase balances if used consistently. Debt carried into retirement converts fixed income into fixed obligations. Long-term care insurance premiums rise sharply with age, and some applicants are denied coverage after health changes occur.

This checklist is general financial information, not personalized advice. Every reader's situation differs. Consult a licensed financial adviser, accountant, or attorney before making decisions that affect your retirement income, taxes, or estate.

Income projections

Request your Social Security Statement from ssa.gov and verify your projected benefit at your intended claiming age. Must
Obtain a written pension benefit estimate from your employer or plan administrator, including survivor benefit options. Must
List every retirement account you hold, including old employer plans, and confirm the current balance and contribution rate. Must
Estimate your expected monthly income from all sources and compare it to your current monthly spending. Must

Savings and contributions

Confirm whether you qualify for catch-up contributions and increase deferrals to the legal maximum if cash flow allows. Must
Review asset allocation in each retirement account to confirm it still fits your timeline and risk tolerance. Should
Consolidate old 401(k) accounts from former employers to reduce administrative complexity and overlapping fees. Should
Open or fund a Health Savings Account (HSA) if you have a qualifying high-deductible health plan; HSA funds can cover Medicare premiums and qualified medical expenses in retirement. Should

Debt reduction

List every outstanding debt with its balance, interest rate, and monthly payment. Must
Build a payoff plan that eliminates high-interest debt before your retirement date. Must
Assess whether carrying a mortgage into retirement is sustainable on your projected income, and model the impact of paying it off early. Should

Healthcare and insurance

Confirm when you become eligible for Medicare (generally age 65) and understand the enrollment windows to avoid late-enrollment penalties. Must
Evaluate long-term care insurance options while you are still likely to qualify medically; premiums increase with age. Should
Review life insurance coverage and determine whether the current level still matches your dependents' needs and your projected estate. Should

Estate and legal documents

Confirm that a current will, durable power of attorney, and healthcare directive are in place and reflect your wishes. Must
Review beneficiary designations on every retirement account, life insurance policy, and payable-on-death account; these designations override a will. Must
Verify that account titling (joint tenancy, transfer on death) matches your estate plan. Should
Share the location of key documents with a trusted person or your attorney so they can be found when needed. Nice to have

How to use this checklist

Work through each group in order. Some items take minutes; others require gathering documents or scheduling an appointment. Mark items complete only after you have acted, not just after reading about them. If an item surfaces a gap, note what action is needed and by when.

For context on how withdrawal order affects how long savings last, see retirement withdrawal sequencing. If you want to understand why outliving savings is a genuine planning risk, longevity risk in retirement covers the mechanics in detail.

Beneficiary designations override your will

A retirement account or life insurance policy passes directly to the named beneficiary regardless of what your will says. Many people discover outdated designations, such as a former spouse or a deceased parent, only when it is too late to change them. Review every designation now and update after any major life event such as marriage, divorce, or the death of a named beneficiary.

Once you have worked through the checklist, the next step is adjusting your spending plan to match your projected retirement income. budgeting after 60 walks through that process.

Finance Editorial Team

Finance Editorial Team

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