10 things you need to do or have done by age 55 to retire by 65

Turning 55 means the countdown to retirement is real—and the financial moves you make in the next decade could determine whether you retire comfortably at 65 or keep working far longer.

Hitting the big five-five often feels like a sudden wake-up call for your plans. You suddenly realize that the golden years of sleeping in and playing golf are just around the corner. Figuring out your financial picture right now is crucial if you want to leave the workforce at sixty-five.

The good news is that you still have a whole decade to right the ship and build a bigger nest egg. You can absolutely take control of your financial destiny with some straightforward moves today. We put together a list of critical moves to help you cross the finish line with confidence.

Maximize Your Retirement Account Contributions

Ramping up your savings is the most powerful lever you can pull at this stage of the game. You need to take full advantage of catch-up contributions if your budget allows for it. Pouring extra cash into your retirement accounts gives your money a final sprint before you stop working.

Finding extra money to save might require you to skip a few fancy dinners or luxurious vacations. Cutting back on silly expenses now translates to a much cushier lifestyle later. Your future self will definitely thank you for making those small sacrifices today.

Eliminate Your High-Interest Debt

Carrying credit card balances into your golden years is a surefire way to drain your hard-earned savings. According to a 2025 Experian report, consumers in their fifties carry an average non-mortgage debt of $30,069. You simply cannot afford to bleed cash on interest payments when you live on a fixed income.

Tackling the highest interest rates first will free up more cash to throw at your investments. Pay off those lingering auto loans and revolving credit accounts as fast as humanly possible. Getting entirely out of the red gives you the ultimate peace of mind.

Calculate Your Target Magic Number

Guessing how much money you need to survive is a terrible strategy for your future. A 2025 Northwestern Mutual study found that Americans believe they need $1.26 million to retire comfortably. You have to sit down and crunch the actual numbers based on your specific lifestyle goals.

Think about your grocery bills, travel plans, and housing costs to get a clear picture. Running a retirement calculator online will quickly show you if you are falling behind. Knowing your exact target helps you adjust your savings rate before time runs out.

Plan for Rising Healthcare Costs

Medical bills can easily bankrupt you if you fail to prepare for them in advance. Fidelity’s Retiree Health Care Cost Estimate reveals that a person retiring at sixty-five today can expect to spend $172,500 on medical expenses. Medicare does not cover everything, so you have to build a dedicated buffer for prescriptions and treatments.

Opening a Health Savings Account is a brilliant move if you have a qualifying insurance plan. Money in an HSA grows completely tax-free and can be a lifesaver for future medical emergencies. Keep piling cash into this account to protect your regular savings from sudden hospital bills.

Review Your Social Security Strategy

Taking your government benefits at the wrong time can cost you thousands of dollars over your lifetime. The Social Security Administration’s 2026 fact sheet notes that the maximum monthly benefit for a worker retiring at full retirement age is $4,152. Claiming at age sixty-two permanently reduces your monthly check, so you might want to hold off.

You can easily set up an account on the government website to view your estimated payouts. Coordinating benefits with your spouse is a smart way to maximize the total cash you receive. A little patience here practically guarantees a much larger monthly deposit down the road.

Draft a Solid Estate Plan

Ignoring your end-of-life paperwork leaves your family with a massive headache and legal nightmares. A Caring.com survey reveals that only 32% of Americans currently have a will or estate planning document. You must dictate exactly where your assets go to protect the people you love.

Setting up a basic trust and updating your beneficiaries takes very little time and effort. Make sure your medical directives and power of attorney are completely up to date. Taking care of this paperwork allows you to sleep soundly knowing your family is safe.

Downsize Your Current Living Situation

Keeping a giant house with empty bedrooms simply burns through your hard-earned cash. Selling your large family home and moving into a smaller place frees up massive amounts of equity. You can take that extra profit and immediately dump it straight into your investment portfolio.

A smaller property also means lower utility bills, cheaper property taxes, and less weekend maintenance. Nobody wants to spend their golden years climbing ladders to clean out clogged gutters. Simplifying your living space provides both financial relief and a much easier daily routine.

Adjust Your Investment Portfolio Risk

Riding the stock market roller coaster is great in your thirties, but it gets scary in your fifties. You need to start shifting some of your money into safer assets like bonds and cash. A sudden market crash right before you quit working could permanently derail your plans.

You still need some growth to beat inflation, so do not abandon stocks completely. Finding the perfect balance between protecting your cash and growing it requires a close look at your timeline. A financial advisor can easily help you rebalance your accounts to match your exact comfort level.

Practice Living on Your Future Budget

Taking your future fixed income for a test drive is the best way to spot potential problems early. Only 5% of eligible participants aged 50 or older actually make catch-up contributions, which means many budgets are stretched thin. You must see if you can actually survive on less money before you hand in your resignation letter.

Try living strictly on your projected retirement income for three to six months to see how it feels. If you find yourself constantly dipping into your savings to buy groceries, you clearly need a better plan. This dry run gives you time to make corrections while you still have a steady paycheck coming in.

Figure Out What You Will Actually Do

Sitting on the couch watching daytime television gets incredibly boring after about two weeks. You need a real purpose or a fun hobby to keep your mind sharp and your days fulfilled. Many people struggle with depression when they lose the social interaction that comes from a busy office.

Start exploring volunteer opportunities, part-time consulting gigs, or new sports right now. Building a solid social network outside of your career guarantees you will have friends to play with later. Planning your daily routine is just as critical as saving up the money to fund it.

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