Preparing for Retirement in Your 50s and 60s: What to Prioritize Now
If you’re concerned about preparing for retirement, you’re not alone. Nearly 70% of people across generations say that they don’t think they’ll have enough savings by the time they plan to retire according to a survey by the Transamerica Center for Retirement Studies.
For many, this stage of life brings both excitement and anxiety—excitement about the freedom ahead and anxiety about whether you’re financially secure for the future.
The good news? Even small, strategic moves now will make a big difference later. Here’s what to prioritize in these critical years.
Define Your Retirement Vision
Before crunching the numbers, take a moment to picture your ideal retirement. Do you want to travel? Downsize to a simpler lifestyle? Continue working part-time or launch a passion project?
The clearer your vision, the easier it is to establish a financial strategy that supports it. Also, consider where you’ll live—will you stay put, move closer to family, or relocate to a retirement-friendly community? Housing is a large expense in retirement, so this decision matters.
Take a Close Look at Your Numbers
Now is the time for a thorough financial review. What do you have saved so far? Consider your 401(k), IRA, pension, brokerage accounts, and savings. Then compare your projected retirement income (Social Security, investment returns, potential part-time income) against your expected expenses.
Think about essential costs (housing, food, healthcare) and lifestyle spending (travel, hobbies, entertainment). This exercise will help identify any gaps and give you time to address them.
Max Out Your Contributions
One major advantage of being age 50 or older is the ability to make “catch-up” contributions to retirement accounts. As of 2025, you can contribute an additional $7,500 to a 401(k) and an extra $1,000 to an IRA.
If you haven’t been able to save as much as you’d like in earlier decades, these extra contributions can help accelerate your nest egg growth—especially if your income is peaking in these years.
Plan Ahead for Healthcare Costs
Healthcare is one of the biggest expenses retirees face—and it’s often underestimated. Even with Medicare, out-of-pocket costs for premiums, co-pays, and long-term care can add up quickly.
Now is the time to consider long-term care insurance and Health Savings Accounts (HSAs) if you’re still eligible. Also, take a close look at how you’ll bridge the gap if you plan to retire before Medicare kicks in at age 65.
Strategize Your Social Security Benefits
When and how you claim Social Security can have a big impact on your lifetime benefits. While you can start collecting as early as age 62, doing so permanently reduces your monthly check. Waiting until full retirement age—or even better, age 70—can significantly boost your benefit.
If you’re married, divorced, or widowed, you may also qualify for spousal or survivor benefits. A financial advisor can help you explore the best strategy based on your unique situation.
Organize and Simplify Your Financial Life
Consolidating accounts, streamlining paperwork, and organizing your financial documents now can make the transition to retirement smoother and more manageable. Make sure you’ve updated your beneficiaries, reviewed your estate plan, and created or refreshed your will, healthcare proxy, and power of attorney.
This is also a great time to test different retirement scenarios using online calculators or financial planning software.
Consider Working with a Retirement-Focused Investment Counselor
Navigating the transition to retirement can feel overwhelming, and that’s where expert guidance can really pay off. A qualified investment counselor, especially one who specializes in retirement planning, can help you with:
- Income planning and withdrawal strategies
- Investment allocation for post-retirement needs
- Tax planning to minimize what you owe
- Estate and legacy planning
Your 50s and 60s are the perfect time to take control of your retirement future. By setting clear and realistic goals, building your savings, and making thoughtful decisions regarding healthcare, Social Security, and taxes, you can step into your next chapter with confidence, rather than fear.
You’ve worked hard to get to this point. Now’s the time to make sure your money is working hard for you.
Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.