Within 4 Years of Retirement? 11 Things to Do Now

If you are within four years of retirement, now is the time to make intentional financial moves. The decisions you take today can help maximize your senior benefits, reduce stress, and prepare you for the next stage of life. With proper planning, you can position yourself to enjoy more stability and fewer surprises in retirement.

Here are 11 practical steps to take before you stop working.

Before retiring, take a close look at your budget and separate needs from wants. Knowing how much money you spend each month gives you a realistic idea of the income you will need.

A clear expense review also helps highlight where you can cut costs to make retirement savings stretch further. At the same time, an initial review doesn't have to be overwhelming; pace yourself in order to stay on track.

Travel often requires more energy and mobility, so planning trips before retirement can be wise. You may also find it easier to fund larger vacations while you are still earning a paycheck.

Crossing at least some big items off your bucket list now can reduce future financial and physical strain in your golden years.

Life circumstances change, and your estate plan should reflect your current situation. Be sure to review your will, trusts, and beneficiary designations at least every 3 to 5 years, to ensure they match your intentions.

Making these updates now can prevent costly disputes and confusion for your loved ones later.

Unexpected expenses do not stop once you retire, so having cash on hand is important. Aim to save at least 6 to 9 months of living expenses in a high-yield savings account.

This safety net can help you avoid dipping into long-term investments during market downturns.

Carrying expensive debt into retirement can drain your fixed income quickly. Focus on paying down credit cards or personal loans with double-digit interest rates first.

Reducing debt frees up more of your retirement income for daily living expenses and leisure.

As retirement approaches, your portfolio should gradually shift to lower-risk and income-generating investments. Rebalancing helps ensure your investments are aligned with your goals and income needs.

Adjusting the mix of stocks, bonds, and cash can reduce volatility while still supporting long-term growth.

Medical costs are often one of the biggest expenses in retirement. Estimate your future health care needs, including Medicare coverage, supplemental insurance, and long-term care options.

Addressing these costs early can help you avoid unexpected gaps in coverage.

Lowering recurring bills gives you more flexibility in retirement. Look for ways to cut costs, such as downsizing your home, canceling subscriptions you no longer need, or finding less expensive insurance.

Every dollar saved on fixed costs is another dollar available for discretionary spending.

Major home repairs can be easier to handle financially while you are still employed. Fixing issues like roofing, plumbing, or electrical work, or splurging for a new kitchen, before retirement can help avoid dipping into savings later.

A well-maintained home also reduces stress and unexpected costs once your income becomes fixed.

A financial advisor can help you create a personalized retirement income strategy. They can guide you through efficient withdrawal plans, Social Security timing, and investment choices.

Professional advice can provide clarity and confidence during this major life transition.

Imagining how you will spend your time in retirement is just as important as financial planning. Try structuring a week that balances leisure, social activities, and personal goals. This exercise helps ensure you have both the financial and emotional readiness for retirement.

Preparing for retirement within the next four years requires both financial and lifestyle planning. Reviewing expenses, reducing debt, and securing health care coverage can all help create stability when your paycheck stops.

Equally important is envisioning how you will spend your days and ensuring your retirement plan supports the life you want. The steps you take today can make the transition smoother and help you enjoy more peace of mind once you call it quits at your 9-to-5.