Whether you’re just starting to think about retirement or you’re closing in on the big day, this retirement checklist will help you stay on track. We’ve broken it down by stage, so you can take action right now—no matter your age or financial situation.
Table of Contents
Stage 1: Getting Started (Ages 20–35)
Set Retirement Goals
- Decide when you’d ideally like to retire (standard age or early?)
- Estimate how much money you’ll need per year in retirement
- Multiply that number by 25 (for the 4% rule) to find your target savings goal
Start Investing Early
- Open a retirement account (401(k), IRA, Roth IRA, etc.)
- Contribute at least 15% of your income (including employer match)
- Choose a diversified mix of low-cost index funds or ETFs
Build Good Financial Habits
- Track your income and expenses
- Create a monthly budget and stick to it
- Avoid high-interest debt like credit cards
- Build an emergency fund (3–6 months of expenses)
Maximize Employer Benefits
- Enroll in your company’s 401(k) plan
- Take full advantage of employer matching (it’s free money!)
- Learn about any pension or stock options
Stage 2: Building Momentum (Ages 35–50)
Increase Retirement Contributions
- Increase savings rate to 20–25% of your income (or more if aiming for early retirement)
- Max out retirement accounts annually (2025 limits: $23,000 for 401(k), $7,000 for IRA)
- Consider a Roth IRA conversion if you’re in a lower tax bracket now
Optimize Your Investments
- Rebalance your portfolio annually
- Diversify into real estate, international funds, and bonds as appropriate
- Avoid emotional investing—stay the course during market swings
Start Thinking About Retirement Lifestyle
- Do you plan to travel, downsize, or relocate?
- Start estimating real post-retirement costs (housing, healthcare, hobbies)
- Research retirement destinations if planning to move
Minimize Debt
- Pay down your mortgage (or plan to pay it off before retirement)
- Eliminate any remaining high-interest debt (credit cards, car loans)
- Consider downsizing expensive vehicles or luxury items
Track Net Worth
- Start tracking your net worth yearly
- Use tools like Personal Capital, Empower, or a spreadsheet
- Benchmark your savings against your retirement goal
Stage 3: Pre-Retirement Planning (Ages 50–65)
Catch-Up Contributions
- Take advantage of catch-up limits (in 2025: an extra $7,500 for 401(k), $1,000 for IRA if you’re 50+)
Refine Your Retirement Budget
- Estimate your retirement expenses (housing, food, healthcare, travel)
- Compare this to your expected income (Social Security, pensions, withdrawals)
- Test your plan using retirement calculators or consult a financial advisor
Plan for Social Security
- Decide when to claim benefits (62, full retirement age, or 70 for max)
- Create an account at SSA.gov to track your earnings and estimate benefits
Healthcare Planning
- Research health insurance options if retiring before age 65 (COBRA, ACA, private insurance)
- Understand Medicare eligibility and coverage (starts at 65)
- Consider long-term care insurance if needed
Estate & Legal Planning
- Draft or update your will
- Create a living will and power of attorney
- Consider a trust if your estate is complex
- Make sure beneficiaries are up to date on all accounts
Lifestyle Planning
- Decide where you’ll live (downsize, relocate, rent vs own)
- Plan how you’ll spend your time: hobbies, part-time work, travel, volunteering
Stage 4: Final Countdown (1–5 Years from Retirement)
Run the Numbers (Again)
- Recalculate projected expenses and income with current data
- Do a test run: try living on your planned retirement budget for a few months
Reduce Investment Risk
- Shift part of your portfolio into lower-risk assets (bonds, cash, annuities)
- Maintain some growth-oriented investments to combat inflation
Review Withdrawal Strategy
- Plan how you’ll withdraw funds (4% rule, bucket strategy, or dynamic withdrawal)
- Consider tax implications of withdrawals from different accounts
Plan a Retirement Date
- Choose an official retirement date and notify your employer
- Review pension options if applicable
- Plan for any gap between retirement and Social Security/Medicare eligibility
Practice Retirement Life
- Take extended vacations or trial “mini-retirements”
- Explore part-time work or consulting if desired
Stage 5: You’re Retired – Now What?
Manage Your Withdrawals
- Withdraw 3–4% of your portfolio annually, adjusting for inflation
- Keep 1–2 years of expenses in cash to avoid selling investments in downturns
Monitor and Adjust
- Review your budget annually
- Rebalance investments regularly
- Adjust spending if market returns fluctuate
Stay Healthy and Engaged
- Stay active physically and mentally
- Maintain strong social connections
- Volunteer or pursue meaningful hobbies
Review Estate Plan
- Update your will and beneficiary designations as needed
- Talk with your family about your wishes
Quick Tips for Early Retirement (FIRE Path)
If you’re aiming to retire in your 30s, 40s, or 50s:
- Save 50–70% of your income
- Eliminate all debt ASAP
- Invest aggressively (stock-heavy portfolio, real estate, etc.)
- Create passive income streams
- Live frugally—even after retirement
- Learn about safe withdrawal rates and sequence of returns risk. Current Bank linked offers great options for savings.
Retirement doesn’t happen by accident—it happens by design. Whether your goal is traditional retirement at 65 or to escape the 9–5 by 40, this retirement checklist can help you get there with confidence.
Start today. Small actions now lead to big rewards later.
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