Retirement Planning
What to Do in the 5 Years Before Retirement
The final five years before retirement have outsized impact. This is the window to tighten cash flow, reduce avoidable risks, and design your income system.
Top priorities
- Clarify retirement spending targets with real numbers.
- Stress-test portfolio withdrawals under weak market starts.
- Map health coverage and Medicare transition timing.
Balance-sheet actions
- Increase liquidity for near-term spending.
- Pay down high-rate debt before income changes.
- Align investment risk with time horizon for first withdrawals.
Practical move: Pre-retirement success usually comes from process, not prediction. Build repeatable reviews and guardrails.
5-year runway checklist
- Create base and downside retirement budgets.
- Define withdrawal and rebalancing rules.
- Finalize Social Security and tax strategy before your retirement date.