Your Retirement Countdown Checklist:
10 Years, 5 Years, and 1 Year Out

You know retirement is coming, but the path to get there looks different depending on how close you are to that milestone. The choices that matter for most at the 10 years out mark aren't the same ones that matter most in your final year of work. The following checklist breaks down what you may need to focus on at each stage, so you can decide your next move.

Checklist: 10 Years Before Retirement

This is your catch-up phase. You are most likely in the highest earning phase of your employment and you should make the most of it. Here are some suggestions to help you maximize your retirement accounts going forward.

• Re-evaluate your savings goals for your eventual retirement. Now you need to consider what it will take financially to actually retire. A common target is 10 to 12 times your final salary by the time you stop working, but your number depends on your lifestyle, health, and retirement plans. Run the math now instead of guessing later.
• Increase your contribution rate whenever possible. If your employer offers a 401(k) match, contribute enough to get the full match, it's free money. If possible, aim to max out your annual contribution limit. Once you turn 50, you can also add "catch-up" contributions (extra savings that help make up for fewer remaining working years). Each year before December, check with a tax professional to confirm the current limits, then contact HR to update your contribution amount.
• Compare your 401(k) with retirement account options outside of work. Your 401(k) is a strong starting point because of the employer match and higher contribution limits, but a traditional IRA or a Roth IRA can add flexibility, more investment options, and different tax treatment. Many people use both. Talk with a tax professional to plan your contributions when you have both type of retirement accounts to avoid unintended tax complications.
• Build an emergency fund separate from retirement savings. Three to six months of expenses in an accessible account keeps you from tapping retirement funds early and facing penalties.
• Pay down high-interest debt. Credit cards and personal loans with steep interest rates work against your savings goals. Clear these first so more of your income can go toward retirement.
• Set a target retirement age. Knowing whether you want to retire early at age 62, or wait until the full retirement age of 65, or later shapes how aggressively you need to save and how you invest along the way.
• Meet with a retirement planning financial advisor. A professional can stress-test your plan, flag gaps, and help you avoid costly missteps while you still have a decade to course-correct.

Checklist: 5 Years Before Retirement

This stage is about tightening your plan and shifting from growth to protection.

• Confirm your full retirement age for Social Security. Full retirement age is 67 for anyone born in 1960 or later, so check your birth year against the Social Security Administration's schedule to find your exact number and how your Social Security benefit is reduced if you retire before your full retirement age.
• Decide when you'll actually retire. You aren't required to retire at the full retirement age and if you continue to work and don't draw Social Security, your benefit is increased every year until you reach the maximum at age 71. Make sure you weigh your health, savings, and income needs before you lock in a retire-at age.
• Shift your investment mix toward lower risk. With a shorter runway to recover from a market downturn, gradually rebalance toward a more conservative approach.
• Estimate your retirement income from all sources. Add up projected Social Security payments, pension income if you have one, and withdrawals from your 401(k) and IRA accounts to see if you're on track.
• Review your traditional IRA account for required minimum distributions. Traditional IRAs and 401(k)s come with required withdrawals starting at a certain age, so understand the rules before they apply to you.
• Talk to a tax professional. Review your retirement accounts and go over the tax implications with a professional so you know what to expect when you withdraw money for retirement.
• Plan for healthcare costs before Medicare kicks in. If you retire before age 65, you'll need a bridge plan to cover healthcare until Medicare eligibility starts.
• Get financial advice for retirement planning tailored to your five-year window. An advisor can help you sequence withdrawals and time your Social Security claim for maximum benefit.

Checklist: 1 Year Before Retirement

This is your final stretch. Focus on logistics, timing, and locking down the details.

• Set your official retirement date. Give your employer proper notice and confirm how your final paycheck, unused vacation time, and any pension payout will work.
• Apply for Social Security benefits at the right time. You can apply up to four months before you want benefits to start, so mark your calendar based on your chosen date you want to start receiving benefits.
• Sign up for Medicare during your enrollment window. Missing your initial enrollment period can lead to lifelong penalties, so confirm your exact dates well in advance.
• Build your retirement budget. Map out fixed expenses, healthcare costs, and discretionary spending against your expected income to spot gaps before they become problems.
• Decide how you'll withdraw from your accounts. Create a withdrawal order across your 401(k), traditional IRA retirement account, and any other savings that minimizes taxes and stretches your money.
• Review and update your estate documents. This should be done periodically anyway, so now may be a good time to confirm that your will and trust, power of attorney, and account beneficiaries reflect your current wishes.
• Consolidate old accounts. Rolling over old 401(k)s into one account, such as an IRA, can simplify management and give you a clearer picture of your total savings. Talk with a tax professional before consolidating your accounts because they can advise on how to avoid tax implications.
• Schedule a final review with a retirement planning financial advisor. A last checkup before you retire helps confirm your income plan holds up and gives you confidence as you make the transition.

Member Investment Program

We’ve developed a relationship with LPL Financial (LPL) so that their Wealth Advisors are available for you to discuss strategies, answer your questions and possibly provide additional retirement investment options. Even better, your LPL Wealth Advisor can assist you throughout your entire investment life cycle using our Member Investment Program, not just with retirement planning.¹

Retirement planning looks different at every stage, and the checklist at 10 years out looks different than one year out. Wherever you land on this timeline, LPL Wealth Advisors can sit down with you, look at your full financial picture, and help you build a plan that fits your goals. Reach out to us to schedule a conversation about your retirement planning and next steps.

¹Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Arrowhead Credit Union and the Member Investment Program are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using the Member Investment Program, and are employees of LPL. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Arrowhead Credit Union and the Member Investment Program. Securities and insurance offered through LPL or its affiliates are:

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