I Asked ChatGPT How a 60-Year-Old Can Prepare for Retirement, Here’s What It Said

Planning for retirement can feel overwhelming, especially when you're only a few years away. At 60, every financial decision can make a difference in how comfortable you'll be once you stop working.

As a result, many people wonder if they've saved enough or if there's still time to make meaningful changes. And for this reason, I decided to ask ChatGPT, "How can a 60-year-old prepare for retirement?"

In a world where AI tools can answer everything from cooking tips to complex financial questions, it's no surprise that people are turning to them for guidance on life's biggest milestones. Find out whether ChatGPT's advice can hold up in the real world.

ChatGPT's first recommendation was clear: "Reducing debt, especially high-interest debt, frees up more of your income for savings and lowers your financial stress in retirement."

Generally, this is smart advice. At 60 years old, it's likely that you don't have decades left to chip away at your balances. That means prioritizing debt payoff can reduce expenses when your income becomes fixed. Think of it as giving your future self a raise, one that lasts for the rest of your life.

According to ChatGPT, "Your claiming age can significantly affect your monthly benefit amount." It suggested evaluating your health, life expectancy, and financial needs before deciding when to start taking Social Security.

As per the Social Security Administration (SSA), waiting until age 70 (full retirement age) can increase your benefit significantly, while claiming early at 62 will reduce it considerably. However, the right choice depends on your unique circumstances, such as your life expectancy, health, and need for cash flow. Making an informed decision can maximize your retirement income.

When I asked about health-related concerns, ChatGPT emphasized understanding Medicare options and potential out-of-pocket costs: "Health care can be one of your largest expenses in retirement, so plan ahead."

This is certainly sound advice. Failing to account for rising Medicare premiums, increased deductibles, and prescription drug costs over the long term can derail even a well-funded retirement plan.

If you're still working, ChatGPT recommends maxing out 401(k) or IRA contributions, especially if your employer offers a match. "Catch-up contributions can help boost savings quickly in your final working years," it said.

The 2025 IRS limit for 401(k) retirement account contributions is $23,500; catch-up contributions for those age 50 and older are an additional $7,500 per year.

That means you could be contributing up to $31,000 per year as you approach your golden years. This is a perfect window of time to save extra funds while you still have earned income.

ChatGPT also suggested considering a smaller home or relocating to a lower-cost area. "Reducing housing costs can free up resources for other retirement needs," it explained.

Housing is often the largest expense for anyone, and could pose a potential financial burden in retirement if your house isn't paid off yet or if you're a renter. Therefore, reducing housing expenses now could significantly improve your financial outlook as you get closer to retirement.

When I asked about investment strategy, ChatGPT responded that "A mix of asset classes can balance growth potential and stability."

This is true; diversification is key. At age 60, it's not always wise to make risky bets, but it might involve adjusting your portfolio to protect against market downturns while still generating returns.

As a general rule of thumb, you could consider transitioning toward more conservative investments, like established mutual funds with a proven track record of growth, as you near retirement. Diversification away from more volatile, risky investments can help mitigate risk and preserve your nest egg.

One thing that ChatGPT stressed was the importance of having cash reserves, even in the lead-up to retirement. "Unexpected expenses can force you to withdraw from investments at the wrong time," it said.

Building and maintaining a healthy emergency fund is a crucial safeguard to avoid landing yourself in high-interest credit card debt. Having six to 12 months of expenses (or more) in a safe, liquid account can prevent costly disruptions to your retirement plan.

Interestingly, ChatGPT didn't shy away from suggesting additional work before and even during retirement. "Part-time income can supplement savings and provide social engagement," it said.

Taking on a side job a few days a week right now, or even once you call it quits at your 9-to-5, is a smart way to pad your retirement savings. Whether it's freelancing in your field of expertise, seasonal work, or signing up to become a rideshare driver, earning extra money can help bridge income gaps and reduce withdrawals from your retirement accounts.

When I asked ChatGPT about legal and legacy matters, its advice was to "Ensure your will, beneficiaries, and powers of attorney are up to date."

While this isn't necessarily directly related to your income, this step can help protect your assets, ensure your money gets distributed to the right people upon your passing, and provide financial peace of mind for you and your loved ones.

Finally, ChatGPT reminded me, "A fulfilling retirement also involves planning for how you'll spend your time."

This is a valuable point: financial readiness is essential, but so is emotional and social well-being. Money isn't everything, and it's so important to make a plan for hobbies, volunteering, or travel to help you transition smoothly into this new stage of life.

ChatGPT's retirement advice for a 60-year-old was surprisingly well-rounded, balancing financial strategies with lifestyle considerations. From paying off debt to planning for health care, the guidance aligned with what financial experts often recommend.

While AI can't replace personalized financial advice, it can be a useful starting point for evaluating your options. Interestingly, ChatGPT even factored in emotional readiness, proving that retirement planning is about more than just numbers. Could an AI conversation be the nudge you need to set yourself up for retirement?