The Last Five Years Before Retirement Matter More Than You Think
If retirement is five years away, the conversation has to change.
This is no longer about vague goals or someday plans. This is about clarity. Numbers. Decisions. And honesty. The question most women are quietly asking is a simple one.
Can I actually afford to retire when I want to?
The final five years before retirement are your window to tighten loose ends, correct course, and protect the life you have worked decades to build. Small adjustments now can have an outsized impact later. Miss this window, and the options narrow quickly.
Let’s walk through what matters most.
Can you actually afford to retire when you want to?
Start With the Truth About Your Savings
This is the moment to stop guessing.
Run your numbers through a retirement savings calculator or work with someone who can do this properly. You need to know how much you have, how much it is likely to grow, and what that translates to in monthly income.
Many women are surprised by what they see. Some are closer than they thought. Others realize there is a gap. Neither outcome is bad. What is dangerous is not knowing.
Once you see the number clearly, your next steps become obvious. You may need to increase savings, adjust your retirement date, or rethink how your money is invested. This is about facts, not fear.
Understand Where Your Retirement Income Will Come From
Retirement income is not a single paycheck. It is a mix of sources that need to work together.
This may include Social Security, pensions, retirement accounts, investments, rental income, or part time work. The timing of when you tap each source matters. Taxes matter. Order matters.
For example, taking Social Security too early can permanently reduce your benefit. Waiting longer can increase it. Pulling from tax deferred accounts without a plan can trigger higher taxes than necessary.
You need to know how much income each source can realistically provide and when it makes sense to use it. This clarity allows you to plan withdrawals in a way that supports both cash flow and long term stability.
Get Real About What Retirement Will Cost You
Retirement spending is often underestimated.
Yes, some costs go down. Commuting. Work clothes. Daily expenses tied to a job. But others increase. Health care. Travel. Home maintenance. Helping family members. Life does not suddenly become cheaper.
This is the time to build a mock retirement budget. List your fixed expenses like housing, utilities, food, insurance, and medical costs. Then add the variable ones. Travel. Hobbies. Dining out. Personal projects you have been postponing.
Compare that monthly total to your expected retirement income. If there is a gap, this is when you can still do something about it.
Do Not Ignore Long Term Care Planning
This is one of the most overlooked and most expensive retirement risks.
Long term care includes help with daily activities, home health aides, assisted living, and nursing care. Medicare does not cover long term nursing care. Medicaid does, but qualifying often requires spending down assets.
If you have not thought about how you would handle this, now is the time. Consider your family history, your health, and your resources. Long term care insurance, self funding, or asset protection strategies may be part of the solution.
Ignoring this risk can undo decades of careful saving. Planning for it can protect both your finances and your choices.
Pay Attention to Taxes Before They Surprise You
Taxes do not disappear in retirement. In some cases, they increase.
Required minimum distributions, Social Security taxation, and poorly timed withdrawals can push you into higher tax brackets than expected. This is why tax planning in the final working years is critical.
Strategies like Roth conversions, timing income, and coordinating withdrawals across accounts can reduce lifetime tax exposure. This is not about avoiding taxes. It is about managing them intelligently.
Keeping more of your money gives you more flexibility and more peace of mind.
This Is the Time for Expert Eyes on Your Plan
At this stage, guessing is expensive.
A fiduciary financial advisor can help you stress test your plan, identify risks, and fine tune your strategy. This includes looking at investments, taxes, income timing, and long term care planning as one integrated picture.
The goal is not perfection. The goal is confidence.
When you know where you stand and what adjustments are needed, retirement stops feeling like a cliff and starts feeling like a transition you are prepared for.
Here Is What I Want You to Remember
The last five years before retirement are not about panic. They are about power.
You still have time to make meaningful changes. You still have options. But only if you are willing to look closely and act deliberately.
Retirement should be a phase of freedom, not financial stress. That outcome is built before you stop working, not after.
Clarity now protects your future self. And that is a responsibility worth taking seriously.
Watch the Free Webinar: Breathe Life Into Your Financial Wellbeing
I created this powerful session to help you:
Understand where to start with your finances
Break free from fear, guilt, or confusion
Learn how to align your money with your values and vision
Ready to Take Control of Your Financial Future?
You deserve to feel confident and secure about your financial future. This is why I have created my 8-week financial literacy program, What Wealthy Women Know - so that all women have access to the information necessary to secure their future.
Remember, it’s not about chasing perfection. It’s about making intentional choices that align with your goals.
Whether you lack confidence in making financial decisions or feel overwhelmed by yet another task in your already beyond-full schedule, here’s the truth:
Your future depends on your financial literacy.
So, are you ready to take control and build the wealth and security you deserve?
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