The Home Stretch: What to Do Before You Retire in 3–5 Years
You’re almost there. After decades of working, saving, and dreaming about the next chapter of your life, retirement is finally within reach — just 3 to 5 years away. This is your time to transition from building wealth to building the life you want to live.
But now is not the time to coast. These next few years are your opportunity to sharpen your plan, tie up loose ends, and set the stage for a retirement that feels not just secure — but deeply rewarding.
Here’s how to make the most of the final stretch.
1. Define What Retirement Really Means to You
Before the numbers come into play, take a moment to envision your future.
Do you want to travel the world? Spend more time with family? Volunteer, start a business, or simply enjoy slow mornings and long walks?
Your retirement should reflect your values and dreams — not someone else’s definition. Get clear on what fulfillment looks like for you. Everything else flows from there.
2. Get Clear on Your Future Expenses
Retirement planning isn’t just about how much money you have — it’s about how much you’ll need. Start by mapping out your expected lifestyle and monthly spending. Break it down into:
Essentials: Housing, food, healthcare, insurance, utilities
Lifestyle goals: Travel, hobbies, entertainment, gifts
One-time expenses: Home repairs, weddings, big purchases
Be realistic. Build in some flexibility. And don’t forget inflation — it’s quiet but powerful over time.
3. Assess Your Income Sources — and Fill the Gaps
List all the income you’ll have in retirement:
Social Security
Pension(s)
401(k), IRAs, Roth IRAs
Investment accounts
Rental or business income
Annuities or other passive income sources
Then, compare that to your projected expenses. If there’s a shortfall, don’t panic — there’s still time to course-correct.
Now is your moment to adjust savings, reduce spending, or even consider working a bit longer or part-time. These years are powerful. Small changes now can have big results later.
4. Supercharge Your Savings
You're in the home stretch — and your ability to save might be at its peak. Max out your retirement accounts, especially catch-up contributions if you’re over 50:
401(k): Up to $30,500 in 2025 (including catch-up)
IRA/Roth IRA: Up to $8,000 with catch-up
Every extra dollar saved now is future peace of mind.
5. Create a Smart Withdrawal Plan
How you withdraw your money matters just as much as how you saved it. A solid withdrawal strategy can stretch your savings and lower your tax bill. Think through:
Which accounts to tap first (taxable, tax-deferred, Roth)
When to start taking Social Security (waiting can increase your benefit)
Required Minimum Distributions (RMDs) that begin in your early 70s
This is where a little professional advice can go a long way.
6. Prepare for Healthcare and the Unexpected
One of retirement’s biggest wildcards is healthcare.
If you plan to retire before age 65, you’ll need to bridge the gap until Medicare kicks in. Look into COBRA, ACA marketplace plans, or healthcare sharing ministries.
Also consider long-term care insurance, and make sure your health coverage and emergency fund are strong.
7. Organize and Simplify Your Finances
Now is the time to get your financial house in order:
Consolidate accounts where appropriate
Review or update your estate plan, will, and beneficiaries
Automate bills and set up a budget or cash flow plan
Make sure your spouse or partner is looped in and informed
Clarity and simplicity bring confidence — for you and your family.
8. Consider a “Bridge Job” or Phased Retirement
You don’t have to stop working cold turkey.
Part-time work, consulting, or freelancing can ease the transition, reduce stress on your savings, and keep you engaged and purposeful. Even a few years of reduced hours can make a meaningful difference.
9. Talk to a Professional — Even Just Once
Retirement isn’t just a financial shift — it’s a life shift. A trusted financial advisor can help you:
Stress-test your plan
Optimize taxes and income
Plan for legacy and healthcare costs
Avoid costly mistakes
Think of it as an investment in your peace of mind.
10. Take Action — Your Future Self Will Thank You
This is your moment to act with intention.
Whether you feel completely ready or a little behind, the next 3–5 years can shape the rest of your life. The goal isn’t perfection — it’s progress.
Start where you are. Take the next right step. Your retirement is coming — and with the right preparation, it can be everything you’ve hoped for.
Key Takeaways
Get crystal clear on what kind of retirement you want.
Know your numbers — both income and expenses.
Max out your savings and build a withdrawal plan.
Prepare for healthcare and long-term costs.
Simplify, stay focused, and don’t be afraid to ask for help.
🎯 Final Thought:
Retirement isn’t just the end of work — it’s the beginning of a new life chapter.
And you’re closer than you think. With purpose, preparation, and a little courage, you can step into the next chapter of your life with clarity, confidence, and freedom.
So let’s get started — your future is waiting.