/images/2023/09/14/woman_using_laptop.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
:format(webp)/images/2023/07/23/mature_businesswoman_working_on_laptop.jpg)
/authors/chris-lewis-headshot.jpg)
/authors/laura_hohenstein_headshot.jpg)
Add Us On Google
Money rules change after you turn 60. The same basics apply: Budget, invest, and avoid debt. But that margin for error shrinks fast. What changes aren't the rules; it's the stakes.
If you make the right moves between 60 and 70, it will matter more in the next 20 to 30 years than anything you did in the decade before.
Get instant access to hundreds of discounts
Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.
Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.
Watch out for scams
Scams aren't new, but the stakes are higher now. Losing money in your 40s might set you back a few years, but a loss in your 60s can permanently derail your financial security.
Older Americans are especially targeted. The Federal Trade Commission (FTC) cautions consumers about a growing wave of scams that perniciously target seniors' life savings.
People of all ages do report foul play, but older Americans are seeing losses in the tens and hundreds of thousands. From 2020 to 2024, reported incidents of older Americans losing $10,000 or more increased by more than 300%.
Scammers pose as bank or government representatives and claim that your data has been compromised and that you must act now. Make sure to slow down and verify everything.
The FTC warns consumers to "never move money to protect it," block unwanted calls, and hang up and verify information.
Plan carefully for health care costs
Health care becomes a central part of your financial picture. Coverage decisions become more complex.
While costs vary among seniors, Fidelity's annual Retiree Health Care Cost Estimate reveals that a 65-year-old retiring today can expect to spend an average of $172,500 in health care and medical expenses throughout retirement.
Many retirees haven't planned for these costs. Maximizing HSA contributions (before Medicare enrollment), choosing the best plan, understanding supplemental coverage, and anticipating out-of-pocket costs require meticulous planning.
Talking with your planner could be a good starting point, as they are well-versed in retiree issues.
Navigate health care coverage choices annually
Medicare isn't a single decision; it's a set of ongoing ones. Supplemental plans, prescription coverage, and provider networks all affect both cost and access to care.
What worked last year might not be the best option this year. Regularly reviewing your coverage is part of maintaining your financial stability.
The government provides free guidance. You can call 1-800-MEDICARE (or 1-877-486-2048 for TTY) to chat with a representative. Help is available 24 hours a day, 7 days a week.
You can also contact your local SHIP (State Health Insurance Assistance Program) at shiphelp.org for free one-on-one health insurance counseling.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>
Sign up for a free debt assessment here.
Budget your spending more intentionally
Budgeting becomes more important than ever now that you're on a fixed or semi-fixed income.
Figures will need to be revisited often. Thrivent recommends an annual review with your advisor to review budget and portfolio performance, or even more frequently if there's a change in income or expenses.
Some advisors advocate for monthly check-ins to track spending and adjust for inflation, and quarterly reviews for portfolio performance.
Manage cash flow instead of just income
Earlier in life, the focus was on earning. After 60, it shifts to managing withdrawals through a smart drawdown strategy.
A drawdown strategy is the plan you use to withdraw money from your retirement accounts in a way that balances income needs, taxes, and how long your savings will last.
Done well, this stretches your savings. Done poorly, it can create unnecessary taxes, deplete funds faster than expected, or impose more belt-tightening than needed.
Some common drawdown strategies to manage cash flow include the 4% rule, variable percentage withdrawal (VPW), or proportional withdrawal (PW).
Avoid debt where possible
Debt carries more weight when you no longer have regular wages. Monthly payments hammer budgets and reduce flexibility.
Without the ability to "earn your way out," debt can linger longer and cost more. Keeping obligations low helps preserve both cash flow and peace of mind.
Maintain good credit
Credit still matters after 60. It can influence insurance rates, borrowing options, and even housing opportunities.
You may not open new accounts often, but maintaining a solid credit profile keeps doors open if you need them. Think refinancing, relocating, or covering unexpected costs.
Diversify to reduce concentration risk
Diversification matters more when there's less time to recover from a downturn in a single asset or sector.
A concentrated position that worked well in your 40s can become a liability. Spreading risk helps protect against sharp, lasting declines.
This may mean adding tools not used earlier, such as annuities for guaranteed income, bonds, or TIPS (Treasury Inflation-Protected Securities) for stability, and even certain insurance products. These products can reduce reliance on market performance alone.
Keep an emergency fund intact
Unexpected expenses don't go away in retirement. While you don't need an emergency savings fund in case of job loss, there's still plenty that can go awry. Medical bills, home repairs, or family support, to name just a few, can arise without warning.
Having accessible cash prevents you from selling investments at the wrong time or taking on debt to cover short-term needs.
Earn $200 cash rewards bonus with this incredible card
The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Cardholders can also earn unlimited 2% cash rewards on purchases.
The best part? There's no annual fee.
Track expenses more closely
Small leaks matter more when income is capped. Subscriptions, fees, and everyday spending can sneakily creep up.
Tracking expenses is all about awareness. Knowing where your money goes helps you adjust before minor issues become major ones.
A few simple tweaks, like switching auto insurance plans and cutting unused subscriptions, can add thousands more to your yearly budget.
Keep financial documents organized
Organization matters for both personal convenience and accessibility, should others need to step in.
Accounts, passwords, policies, and key documents should be securely stored, but still easy to grab in case of an emergency. Clarity now prevents confusion later.
Similarly, make sure to keep important documents like wills and estate documents updated as life circumstances change.
Talk about money with family
Financial decisions after 60 often have ripple effects. Conversations about plans, expectations, and responsibilities can prevent misunderstandings down the line.
This includes naming a financial Power of Attorney (POA) who can manage your financial affairs should you become incapacitated.
These conversations may not feel urgent, but avoiding these discussions can create bigger issues later, including major family strife.
Bottom line
The financial rules don't change after 60, but the consequences do. With less time to recover and more reliance on what you've already built, every decision carries more weight.
Check up on your retirement readiness with your planner, or schedule an audit of your current financial state. And if you don't have a planner now, or you're feeling lukewarm about your current one, now is a great time to find an expert you jive with.
More from FinanceBuzz:
- 7 things to do if you’re barely scraping by financially.
- Find out if you're overpaying for car insurance in just a few clicks.
- Make these 7 savvy moves when you have $1,000 in the bank.
- 14 benefits seniors are entitled to but often forget to claim
/images/2021/04/21/adobestock_192812280_1200x628.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
/images/2025/01/28/adobestock_628402894_1.jpeg)
/images/2024/09/04/adobestock_669069249_editorial_use_only_1.jpeg)
/images/2020/03/02/tattoo-woman-bar.jpeg)
/images/2020/12/21/smiling-couple-looking-at-laptop-screen.jpeg)
Intro Offer
Discover will match all the cash back you’ve earned at the end of your first year.
Annual Fee $0 Why we like it
/images/2025/01/23/discover_it_cash_back_card_art_gold.png)
/images/2025/02/04/person_using_card_in_atm.jpg)
/images/2020/06/29/pensive-woman-looking-at-laptop-screen.jpeg)
/images/2023/04/14/fit_woman_having_fun_with_adorable_mongrel_dogs.jpg)
/images/2025/12/04/65-year-old-man-sitting.jpg)
/images/2025/09/17/federal-reserve.jpg)
/images/2025/12/23/paying_at_a_store_with_credit_card.png)
/images/2024/08/17/vacation-cabin-in-forest.jpeg)
/images/2026/04/24/president-donald-trump_4.jpg)
/images/2025/08/29/portrait-of-50-year-old-man-adobe.jpg)
/images/2026/04/23/senior-with-her-dog-and-laptop.jpg)
/images/2026/04/27/older-woman-cash.jpg)
