10-Year Retirement Planning Checklist: What to Do Before You Retire 

Imagine stepping into your first day of retirement confident in the lifestyle you’ve planned.

Retirement planners generally agree that the next 10 years is a prime window to solidify your financial footing. Beginning your plan today, 10 years before you retire, gives you space to grow savings, adapt to market changes, and refine withdrawal strategies. Over a decade, contributions could potentially compound and strengthen your nest egg. 

This article breaks the journey into three phases: Laying the Groundwork, Strategize and Optimize, and Finalize and Transition. Use this checklist to build habits, manage potential risks, and prepare thoughtfully for life after work.

Phase 1: 10+ Years Before Retirement – Laying the Groundwork

Define Your Retirement Vision and Goals

Picture your ideal retirement. Where will you live? How will you spend your time? What kind of legacy do you want to leave behind?

Use the Department of Labor’s “Worksheet A” to inventory your retirement-account balances and other assets, then project their future value using a conservative growth rate. 

Next, quantify your target nest egg by estimating the annual income you’ll need. A general rule of thumb is to aim for about 80 percent of your pre-retirement earnings, though your personal needs may vary based on lifestyle.

Calculate Savings Benchmarks and Target Rate

Aiming to save between 10 and 15 percent of your income is a good starting point. Then, you can tailor that rate for your age and goals. 

If you’re younger than 40, you may choose a slightly higher rate to allow more aggressive growth. If you’re over 50, you might increase contributions as catch-up opportunities become available. 

Use online calculators, such as the Social Security Administration’s benefit estimators, to model how different savings rates and assumed returns (e.g., 5 percent vs. 7 percent) could affect your ultimate balance.

Build or Reinforce Your Emergency Fund

An emergency fund helps you avoid tapping retirement savings for unplanned costs. Financial experts generally recommend holding at least six months of living expenses in a liquid, FDIC-insured account (e.g., high-yield savings or money-market account). 

If your job is unstable or your household has special medical needs, consider boosting that to 12 months of essential expenses.

Tackle High-Interest and Non-Mortgage Debt

High-interest debts, especially credit cards, can erode your ability to save. Prioritize paying these down before increasing retirement contributions. Explore options to refinance high-rate loans or consolidate balances at lower interest. Once these debts are under control, redirect the freed-up cash into your retirement and emergency-fund accounts.

Maximize Employer-Sponsored Plan Employee Contributions

If your employer offers a match on your retirement contributions, contribute at least enough to capture the full match. Gradually increase your deferral rate by at least one percentage point per year until you reach the maximum.

For 2025, the IRS limit for employee elective deferrals is $23,500, with an additional $7,500 catch-up if you’re age 50 or older.

Diversify Across Retirement Account Types

Tax diversification may help you manage future tax risk. Balance traditional 401k or IRA contributions (which may reduce your taxable ordinary income today) with Roth vehicles (which offer potential tax-free earnings). 

If you have extra savings capacity, consider a taxable brokerage account for flexible access and additional investment options.

Phase 2: 5–10 Years Before Retirement – Strategize & Optimize

Gradually Shift Your Asset Allocation

Over time, you might want to dial back risk as you near retirement. Move from an aggressive mix (roughly 90/10 equity to fixed income) toward a more moderate ratio (around 70/30). This shift helps protect gains when markets turn. 

Rebalance your holdings at least once a year to keep your target mix intact. A diversified portfolio across and within asset classes may help manage volatility.

Leverage Catch-Up Contribution Opportunities

At age 50, the IRS generally lets you add an extra $7,500 in catch-up employee contributions to most 401k plans for 2025. Under the SECURE 2.0 Act, participants who attain age 60, 61, 62, or 63 in a calendar year may contribute up to $11,250 instead of $7,500.

📝 Note: If you’re a sole proprietor or S Corp owner, note that the ordinary income required to max out these limits may vary by net income, net adjusted income, and gross income after self-employment tax deductions.

Plan For Tax-Efficient Withdrawals 

Look for years when your ordinary income may be lower as these could be ideal for Roth conversions into a Roth IRA or designated Roth account. Modeling how much to convert each year helps balance your future RMDs and may smooth your tax brackets. Map out your taxable versus tax-free buckets to guide both conversions and eventual withdrawals.

📌 Also Read: The Backdoor Roth IRA: How It Works And How to Set It Up

Review and Update Your Estate Plan

Ensure your will, powers of attorney, trusts, and advance directives are in place and reflect your current wishes. Update beneficiary designations across retirement accounts and insurance policies after major life changes such as marriage, birth, or relocation.

📌 Also Read: IRS | Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2024)

Evaluate Insurance and Long-Term Care Needs

Estimate premiums and deductibles for Medicare Supplement Insurance (Medigap) policies to cover gaps in Original Medicare. 

Most long-term care isn’t medical and isn’t covered by Medicare or Medigap. Consider long-term care insurance or Medicaid options in your state for custodial care like assisted living or home health services.

Monitor Progress with Regular Check-Ins

Schedule an annual “retirement health check” with your financial or tax advisor to review goals, update projections, and adapt to market shifts and life events. You might use interactive worksheets from the Department of Labor to track savings targets and document organization.

Feel free to adjust these steps as you gain insights and your situation evolves.

Phase 3: 0–5 Years Before Retirement – Finalize & Transition

Project Healthcare Costs and Insurance Options

Start by identifying key Medicare enrollment periods around age 65.

Medicare Initial Enrollment Period (7 months total):

During this time, you can sign up for Part A and Part B.

If you miss this window, you may face penalties and delays. You’ll have to wait for the General Enrollment Period (January 1 to March 31) to sign up.

Next steps:

✅ Look into Medigap plans to help cover costs not included in Part A and Part B.
✅ Plan for extra expenses like dental, vision, hearing, and long-term care.
✅ Check IRS Publication 502 for medical and dental expenses that may be deductible if you itemize.

Determine Optimal Social Security Timing

Think carefully about when to start collecting benefits:

Compare early vs. late filing:

✅ Claiming at age 62 reduces your monthly benefit.

✅ Waiting until age 70 increases your payment by about 8 percent per year after your Full Retirement Age (FRA).

✅ Use the SSA’s online calculators to estimate your break-even point, usually around your late 70s.

Don’t forget to factor in spousal and survivor benefits:

✅ A spouse may receive up to 50 percent of their partner’s FRA benefit.

✅ These benefits could influence when you choose to file.

📌 Also Read: Do You Qualify for Social Security Spouse’s Benefits?

Refine Withdrawal and Distribution Strategy

Set a sustainable withdrawal rate, such as 3 to 4 percent of your portfolio annually. Sequence distributions to manage your tax burden: take from taxable accounts first, then tax-deferred accounts, and finally tax-free buckets like Roth IRAs. 

IRS Publication 575 outlines how different distributions are taxed and reported.

Protect Your Portfolio: Risk Reduction Strategies

As you approach retirement, focus on reducing risk and preserving your savings:

✅ Create steady income streams:

✅ Reduce exposure to risky assets:

Finalize Your Retirement Budget and Lifestyle Plan

Plan out your monthly spending in retirement:

✅ Estimate your core expenses

✅ Add lifestyle and legacy costs

This detailed budget helps ensure your income aligns with both needs and wants.

Update Beneficiaries and Legal Documents

Finally, double-check beneficiary designations on all retirement and insurance accounts. Confirm that your will, trusts, powers of attorney, and health directives reflect your current wishes.

📌 Also Read: IRS | Retirement topics – Beneficiary

Your Next Steps

By following this three-phase roadmap—Laying the Groundwork, Strategize and Optimize, and Finalize and Transition—you’re building a plan that can adjust as markets shift and your goals evolve. 

Set up yearly check-ins to stay on track, update your contributions, and adjust your investments as needed.

Every strategy comes with trade-offs and risks, and what fits one person may not fit another. If you’re unsure, consider speaking with a qualified professional for guidance tailored to your situation.

📌 Explore more articles to continue building confidence in your retirement planning:

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