You've spent years building your retirement savings, and now retirement is within reach, but knowing what to do next can feel overwhelming. This checklist is designed to help you identify the steps to get ready for retirement financially and emotionally. Starting this process five to 10 years early can help you move into retirement feeling confident and ready for your next chapter.

Sharpen your focus on retirement

Getting to retirement isn't the real goal — it's what you want to do once you're there that matters. Thoughtful reflection and a clear vision can help you reduce uncertainty as you transition to retirement and achieve a retirement that’s fulfilling for you.

• Define your ideal retirement. Identify what will give your retirement meaning, structure and fulfillment to establish a clear retirement vision.
• Share your vision with your loved ones. Gain alignment with your spouse or partner (if you have one) to ensure you're planning toward the same future. Discuss your plans with close family or friends that you may be relying on or who may be relying on you.
• Test-drive your vision and refine it as needed. Try out any lifestyle changes you're considering and adjust your plans accordingly. It can also be helpful to talk with retirees to learn from their experiences.
• Progress toward your vision. Consider increasing your contributions if you're not on track and review where they're going to strengthen your ability to support your retirement vision.

Plan now for the cost of health care

Health care represents one of the largest expenses for retirees, so it's important to start planning for these costs before you retire.

• Contribute to an HSA if eligible. Check your eligibility and consider contributing to help with future healthcare costs.
• Plan for any pre-65 health insurance needs. If you’re leaving your job before age 65, determine how you’ll cover health care.
• Factor in Medicare costs. Medicare will be a foundational part of your healthcare plan in retirement, so it's crucial to understand your Medicare options, costs and coverage, and your enrollment timing.
• Plan for long-term care. The risk of an LTC event is likely, and the costs can be significant, so it's crucial to plan for it well before you need it.

Estimate your retirement expenses

No later than five years from your target retirement date, develop a more precise spending estimate based on your retirement vision and health care plans to get a better understanding of your retirement readiness.

• Develop a precise expense estimate. Map expected expenses into key categories that align with your vision and identify what's required versus discretionary.
• Adjust for inflation. Factor inflation into your spending estimates so you're better prepared to support your lifestyle throughout retirement.

Develop your retirement paycheck strategy

• Determine outside income sources. Understand how much of your spending needs are covered by sources other than Social Security and your investment portfolio, such as pensions, part-time employment and other government benefits.
• Decide when to claim Social Security. Understand your claiming options and how timing will impact your retirement paycheck to determine when it's most advantageous to take your Social Security benefit.
• Consider a protected lifetime annuity*. Evaluate whether a protected lifetime annuity fits into your broader retirement paycheck strategy.
• Assess your portfolio's ability to support your withdrawals. Determine an appropriate withdrawal strategy from your portfolio to help ensure your savings can support the remainder of your spending needs throughout retirement.

Position your portfolio for withdrawals

• Begin to build a short-term reserve. Prepare for upcoming withdrawal needs by allocating an appropriate amount to cash and short-term fixed income.
• Allocate your portfolio for future income and growth. Invest in a mix of medium- and long-term fixed income and stocks to help outpace inflation and support your income needs later in retirement.

Pressure test and refine

• Practice your retirement budget. Consider living on your projected retirement budget for one to two years to validate expense assumptions.
• Stress-test your strategy. Discuss any concerns with your financial advisor and evaluate how your strategy might perform if your concerns were to happen.
• Regularly review your retirement vision and strategy. At least annually, revisit your vision and strategy to confirm it still aligns with your priorities and make changes as needed.

Final steps

In the final year before retirement, finalizing important decisions, confirming key details and beginning to embrace your retirement lifestyle will help support a smooth transition.

• Wind down at work. Understand stop and start dates for compensation and benefits and submit your retirement notice.
• Solidify your healthcare path. Finalize healthcare coverage and enrollment to avoid a gap in coverage when employer benefits end.
• Prepare for your retirement paycheck. Review income sources and confirm they're directed to the correct account.
• Think beyond finances. Start building social connections and engaging in the activities and routines you plan for in retirement.