Financial Essentials for Your 60's

A retirement plan should look beyond the value of your investment accounts. Determine how much income you will need, where that income will come from, and how inflation, taxes, healthcare costs, and market fluctuations may affect your lifestyle.
Maintain an appropriate emergency reserve so unexpected expenses do not force you to sell investments at the wrong time.

You may begin receiving retirement benefits as early as age 62, but claiming early generally results in a permanently reduced monthly benefit. Waiting beyond your full retirement age may increase your benefit until age 70.
The right decision depends on your health, longevity expectations, employment, tax situation, spousal benefits, and other available income—not simply your age.

Your Medicare Initial Enrollment Period generally begins three months before the month you turn 65 and ends three months afterward.
Review Medicare Parts A and B, prescription drug coverage, Medicare Supplement insurance, and Medicare Advantage plans. If you are still working or covered through an employer plan, understand how delaying enrollment could affect your coverage, premiums, and potential penalties.
Medicare does not cover every healthcare expense and generally does not pay for extended custodial long-term care.

Your 60s may offer an important opportunity to strengthen your retirement savings. Review your workplace retirement plan, IRA contributions, employer matching benefits, and available catch-up contributions.
In 2026, employees ages 60 through 63 may be eligible for an enhanced catch-up contribution of $11,250 to many 401(k), 403(b), and governmental 457 plans, subject to plan provisions and IRS rules.
Consider whether traditional pretax contributions, Roth contributions, or a combination of both best supports your long-term tax strategy.

The order in which you withdraw money from taxable, tax-deferred, and tax-free accounts can materially affect your lifetime taxes.
Review potential Roth conversions, capital-gain management, charitable giving, Medicare income-related premium adjustments, and the taxation of Social Security benefits before making significant withdrawals.
Traditional retirement accounts are generally subject to required minimum distributions beginning at age 73 under current law, although the applicable age may be 75 for certain younger individuals.

As retirement approaches, your portfolio should reflect your income needs, time horizon, tolerance for risk, and ability to withstand market declines.
The goal is not simply to pursue higher returns. It is to maintain an appropriate balance of growth, income, liquidity, diversification, and risk management so your money can support both today’s lifestyle and tomorrow’s needs.

Discuss how you would want to receive care, where you would prefer to live, and who would help make decisions if you were unable to do so.
Evaluate your savings, insurance coverage, family resources, and potential long-term-care solutions. Planning early may provide more choices and help protect your spouse, family, and retirement assets.

Review your will, trusts, beneficiary designations, powers of attorney, healthcare directive, and living will. Confirm that the individuals you selected are still appropriate and understand their responsibilities.
Your beneficiary designations should also be coordinated with your overall estate plan because they may control how retirement accounts, life insurance, and certain other assets are distributed.

If you own a business, determine what should happen if you retire, become disabled, die unexpectedly, or receive an opportunity to sell.
A comprehensive succession plan may address business valuation, potential buyers or successors, buy-sell agreements, key-person coverage, taxes, family involvement, and how the sale will support your retirement.

Retirement planning is about more than money. Consider how you want to spend your time, where you want to live, the people and causes you want to support, and the legacy you hope to leave.
Part-time work, consulting, volunteering, travel, family involvement, and community service can provide purpose, relationships, and fulfillment throughout this next chapter.