What to Do Before 60: Smart Steps to Build a Secure, Fulfilling Retirement
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More Americans Are Turning 60. The question is, are you truly ready for retirement? Every day, more than 12,000 Americans turn 60, according to the U.S. Census Bureau. That milestone isn’t just a number — it’s a signal that the clock is ticking on your retirement plan.
As of early 2025, there are approximately 59 million retired Americans, with most exiting the workforce around age 62, according to the U.S. Bureau of Labor Statistics. And while many aim for 65, real life — layoffs, caregiving, health issues — often pushes the timeline forward. America is getting older — so are you!
If you're in your 50s, now is the time to take action — not just for your finances, but for your well-being and independence later in life.
Maximize Retirement Contributions While You Still Can
You're in your peak earning years — make them count.
- In 2025, you can contribute up to $23,000 to your 401(k) — and an additional $7,500 if you're 50 or older.
- For IRAs, the annual limit is $7,000, plus a $1,000 catch-up contribution.
- Self-employed? Look into SEP IRAs or Solo 401(k)s for higher limits and flexibility.
Too many people underestimate how much they'll need. Maxing out now helps you build financial breathing room later.
Diversify Your Investment Portfolio
With retirement nearing, your investments need to strike the right balance.
- Blend stocks, bonds, and alternative assets based on your risk tolerance.
- Don’t go too conservative too early — retirement could last 25 to 35 years.
- Target-date funds or a professional advisor can help you make smart shifts over time.
Ask yourself: If the market drops 20% next year, will I panic or stay the course?
Understand Your Social Security Timing
Social Security can make or break your income plan.
- You can start claiming benefits at age 62, but they’ll be permanently reduced by up to 30%.
- Waiting until full retirement age (66 to 67 depending on birth year) or even age 70 can increase your monthly benefit.
- Married? Coordinating spousal benefits can add even more value.
Visit ssa.gov/estimator to see how different retirement ages impact your check.
Increase Your HSA Contributions (If Eligible)
If you have a high-deductible health plan, don’t ignore your Health Savings Account (HSA).
- In 2025, contribution limits are $4,300 for individuals and $8,550 for families.
- If you’re 55 or older, you can add an extra $1,000 catch-up contribution.
- HSAs are triple tax advantaged — contributions, growth, and withdrawals for medical expenses are tax-free.
In retirement, HSA funds can cover Medicare premiums, prescriptions, and even qualified Long-Term Care Insurance premiums.
Plan for Long-Term Care — Don’t Wait
Here’s the truth: 56% of people aged 65+ will need long-term care at some point, according to the U.S. Department of Health and Human Services.
That doesn’t just mean help with one activity of daily living. It means needing extended care — often for months or many years — due to illness, injury, or cognitive decline.
- Long-Term Care Insurance is most affordable before 60, when you’re more likely to qualify medically.
- LTC Insurance premiums for a healthy 55-year-old couple average $2,000–$4,000 or more annually, pending on health and benefits and insurance company based on data compiled by LTC News – How Much Does Long-Term Care Insurance Cost at My Age?
- Without coverage, families often pay out of pocket — with costs ranging from $60,000 to over $140,000 or more per year, depending on location and care type.
Start by using the LTC News Cost of Care Calculator to get a real-world estimate for care near you.
Planning early gives you more control over the type of care you’ll get. Most people wait too long — and then it's too late.
Reduce or Eliminate High-Interest Debt
Retirement isn’t freedom if you’re buried in debt.
- Pay off credit cards, auto loans, and personal loans.
- Consider paying down your mortgage early — especially if you're within 5 to 10 years of retirement.
- Prioritize building a 6- to 12-month emergency fund so you don’t need to tap retirement accounts in a crisis.
Create a Realistic Retirement Budget
Know what you’ll spend — and where it’s coming from.
- Account for fixed expenses (housing, insurance, food) and variable costs (travel, hobbies, gifts).
- Don’t forget about taxes on Social Security and withdrawals from pre-tax accounts.
- Consider using a retirement planning app or working with a fee-only advisor.
People often overspend early in retirement, not realizing their money needs to last 30 years.
Review and Update Your Estate Plan
Outdated documents can create chaos for your loved ones.
- Review your will, healthcare proxy, and durable power of attorney.
- Update beneficiaries on life insurance and retirement accounts.
- Consider whether a living trust makes sense — especially if you have property, business interests, or a blended family.
Make sure someone you trust can step in if you can’t speak for yourself.
Evaluate Your Life Insurance Needs
Life insurance should reflect your current stage of life — not the one you were in 20 years ago.
- Do your spouse or kids still depend on your income?
- Are you using insurance as part of your estate or LTC planning?
- Should you convert a whole life policy into a hybrid life/long-term care policy?
- Should you convert a term policy into permanent coverage?
Revisit your coverage with a licensed Long-Term Care Insurance specialist —one who isn’t tied to just one insurer.
Emotionally Prepare for Retirement — What Will You Do With Yourself?
Stepping away from work is more than a financial shift. It’s an emotional one.
- Will you miss the structure and social connection of your job?
- Do you have goals, hobbies, or a purpose to guide your days?
- Are you ready to let go of the work identity you’ve had for decades?
When you stop working, you don’t just lose a paycheck — you lose part of yourself. The happiest retirees are those who have something they’re retiring to, not just from.
Whether it's travel, volunteering, mentoring, or starting a side hustle, build a vision for your life beyond the office.
The Time to Act Is Now
If you're approaching 60, this is your moment. Not just to plan, but to take action — before health issues, market swings, or unexpected life events catch you off guard.
- Max out your savings
- Make your long-term care plan
- Build your emotional roadmap
- Create the retirement you want — before someone else does it for you
Your next chapter is coming. Will you be ready?