8 Retirement Milestones You Should Hit by Age 55 (Or Risk Working Until 70)

The 10 years before retirement are the most critical. You can finally begin to see the life you've worked so hard for. Whether you dream of traveling, spending more time with family, or finally focusing on hobbies and interests, the key to a stress-free retirement lies in careful planning.

Think of the following eight milestones as your personal roadmap to help you stay in control and build the future you deserve.

The amount of money you need for retirement depends on what type of lifestyle you want to maintain. Many advisors recommend having at least seven times your current annual salary by the time you turn 55.

If you make $70,000 a year, you should have at least $490,000 in savings. If you're not there yet, you may need to boost your account contributions or delay retirement to give you more time to save.

There are annual contribution limits for 401(k) accounts. However, once you turn 50, the IRS allows you to make catch-up contributions. And as of 2026, that amount is $8,000. You can also contribute $8,600 per year to IRAs. This is one of the most effective ways to boost your savings while reducing your tax liability.

If you can't contribute the full amount, even a slight increase could result in big savings.

Your mid-50s are the perfect time to ensure your estate is in order for retirement. There are five essential documents you need to have in place to ensure your wishes are carried out if you're incapacitated in any way.

These include the health care proxy, power of attorney, living will, last will or trust, and digital estate plan.

High-interest debt eats into retirement savings. By 55, aim to be debt-free, especially credit cards and personal loans. If you're not there yet, create a payoff strategy, such as the snowball method.

Continue paying the minimum on all your accounts, but put every extra dollar towards the one with the smallest balance. Once it's paid off, start chipping away at the next smallest debt until all debts have been paid.

Eliminating debt before retirement can save you thousands of dollars in interest charges that could be used for everyday living. Start by making extra principal payments or talk to your lender about a shorter-term loan that aligns with your target retirement date.

You may even want to sell your current home, downsize, and invest the equity into a mutual fund or other high-yield savings account.

One of your biggest expenses in retirement is health care, so you need to start planning early to cover costs, especially for the potential gap between employer coverage and Medicare.

You can apply for Medicare three months before you turn 65, but you can plan ahead before you hit that milestone. At 55, if you're eligible for a health savings account (HSA), you can contribute up to $5,400 a year, which is also tax-deductible.

The amount of money you'll receive monthly from Social Security is determined by your lifetime earnings. By age 55, you should know your projected benefits at various retirement ages. Full retirement age is 67.

If you retire early at 62, you'll reduce your benefit by as much as 30%. To view your estimates, go to SSA.gov to create an account. If you wait until you're 70 to apply, you will receive a delayed retirement benefit of up to 8% per year between FRA and age 70. 

Saving money is only part of your retirement strategy. You also need to have a plan for how you will spend your money. By 55, you should learn about withdrawal strategies to help boost your assets while preserving your financial fitness. 

Common methods include the 4% rule, where you withdraw 4% of your retirement savings yearly, or the bucket strategy, which involves maintaining three separate accounts for retirement: one for short-term, one for intermediate-term, and one for long-term needs.

Reaching key milestones by the time you turn 55 makes it much easier for you to retire on your terms (and maybe even retire early). If you haven't met these goals, it doesn't necessarily mean you won't be able to retire when you want to. It does mean you need to play catch-up. If you fail to get your finances in order, you might have to push your retirement date from 65 up to 70 or beyond.

Consider speaking with a financial advisor who can help you maximize your portfolio or show you how to start one if you don't already have one.