Retirement Retirement Planning

14 Things You Should Always Do 2 Years Before You Retire

In just a couple of years, you can do a lot to secure your financial future.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated May 29, 2026

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As retirement approaches, you're not alone if you wonder about the state of your financial fitness. In fact, according to a 2026 Annual Retirement Study from Allianz Life, nearly 70% of non-retirees express moderate to high anxiety about their financial preparedness.

Are you really financially ready to leave work behind and enter your golden years? If you plan to retire two years from today, here are some things to do now.

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Lock in your Social Security claiming strategy

You can claim Social Security as early as age 62, but doing so means your monthly benefit will be permanently reduced.

Waiting until full retirement age will result in a larger check. That age is 67 for most folks. If you wait until age 70, you ensure the biggest possible payout of all.

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Manage income carefully with IRMAA in mind

Medicare looks back two years at your income when determining your Part B and Part D premiums. That means that the income you earn at age 63 can impact how much you pay in premiums at age 65.

If you earn too much, you might be required to pay an extra charge known as an income-related monthly adjustment amount, or IRMAA. Consider talking to a tax professional about ways to manage your income so you avoid this fate.

Consider Roth conversions before retirement begins

If your income is relatively low in the years prior to retirement, it might make sense to convert part or all of a traditional IRA or 401(k) plan to a Roth IRA.

However, the option is not right for everybody. Talking with your tax pro can help determine whether this is the best move for you.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Do a budget dry run

Wondering how to make ends meet in retirement? Do a trial run now by tracking actual spending for several months.

Then, see where you can cut costs. This should give you a pretty good sense of what your retirement cash flow will be like.

Consolidate scattered retirement accounts

Many workers today have one or more retirement accounts that are still attached to former employers.

Consolidating these accounts might make it easier to manage money during your golden years.

Plan for the health care gap if retiring before 65

The age of 65 has traditionally been viewed as the time to retire. But millions of people quit work earlier than that.

It is likely that you will not be eligible for Medicare until you turn 65. So, if you plan to retire early, make sure you know how you will pay for health insurance.

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Update estate documents and beneficiary designations

Anyone who reaches retirement age also comes to grips with the fact that life is not going to last forever.

Before you begin your golden years, make sure your estate planning documents are in order, and you have named the beneficiaries you want to inherit your estate.

Max out remaining catch-up contributions

Your final two years of work can be a great time to add a few extra dollars to retirement accounts.

Workers who are 50 or older can make an extra $8,000 in catch-up contributions to a 401(k) and $1,100 to an IRA. Those who are between the ages of 60 and 63 can make catch-up contributions of $11,250 to a 401(k).

Explore possible relocation options

Two years is plenty of time to think about and actually explore possible places to relocate during retirement.

You might even find a dream location with a lower cost of living than the place you currently call home. That can help you stretch dollars further during retirement.

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Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

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Decide whether long-term care insurance is for you

Medicare covers many health care expenses in retirement. But when it comes to paying the cost of long-term care coverage, you will probably be on your own.

Some people try to mitigate this potential cost by purchasing long-term care insurance. Others say such coverage is too expensive. Now is the time to decide whether this option is right for you.

Explore new hobbies

Many people dream of a retirement that is one long period of relaxation. But when they finally experience such a life, they end up bored out of their minds.

If you want to reduce the risk of this happening to you, consider taking up some new hobbies right now. That way, you will be better equipped to fill your newfound free time in retirement with things you enjoy.

Weigh the pros and cons of an annuity

An annuity could provide a guaranteed income during retirement. You receive payments regardless of what is going on in the stock market or the wider economy.

But annuities often have drawbacks, including high fees. Sit down with a financial advisor or other professional who can help you drill down on the pros and cons of annuities.

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Try living with one car instead of two

If you are married or living with a partner, chances are good that you each have a car. But once you both retire, a single car might be enough for the two of you.

Scaling back to one vehicle can cut your monthly costs significantly. Use weekends and other times you are not working to give single-car life a trial run.

Start building an emergency fund

It is always important to have an emergency fund that you can turn to when you need cash fast. But having this type of savings account is even more important when you retire and can no longer count on a paycheck.

Two years should give you plenty of time to build up enough savings to cover six months or more of expenses.

Bottom line

Before you retire, it's important to review your retirement goals and prepare yourself financially for the years ahead. Two years before retirement is the perfect time to get your financial house in order.

Making the moves on this list can help get your golden years off to a great start.

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