Preparing for retirement involves more than reviewing your 401(k). Mike McGrath, CFP^®, CLU^®, CAP^®, shares a 10-step pre-retirement financial checklist.

Financial Planning Checklist: Preparing for Retirement

The idea of waking up late on a Tuesday morning and having nothing to do other than lunch with a friend and/or a long hike sounds like a pipe dream when we are in our 20s and 30s. If we were smart enough then (or had proper guidance), we would have started saving then—at least what little we had left after mortgages, braces, and car repairs. However, as we move through our mid-40s into our 50s, our unpreparedness feels like Monday evening when we aren't quite ready for Tuesday morning to arrive.

As the passive thoughts of a long-off retirement progress into a serious and somewhat panicked conversation about what we need to save, how we will spend our non-working years, and the legacies we all want to leave, the magnitude of it all may feel overwhelming.

At this juncture, our advice is to simply break it down into manageable pieces and focus on them one at a time. Each element of our planning, if done correctly and/or with the advice of a qualified financial planner, will build upon the previous piece, ultimately giving you a clearer sense of where you stand and where you're headed.

From Retirement Vision to Financial Readiness

While I would start with the "softer" portions of retirement planning (or financial planning in general), such as a discussion of how you want to spend your time, what goals have ultimate importance, or the kinds of charitable endeavors in which you want to engage, we can't ignore the blocking and tackling aspects of knowing and reviewing our investments and retirement accounts.

Most of my clients want to understandably focus on what they have saved and, more than that, how to make the most of what they have saved. That's a good instinct, but preparing for retirement goes well beyond any single account. After all, markets come and go, portfolios go up and down (and hopefully back up again), and life changes. However, if we can discipline ourselves to focus on what we can influence and stick with the program, we can develop the sense of readiness we all crave.

With that in mind, here is a pre-retirement financial checklist I'd encourage anyone approaching retirement to review.

10 Financial Steps Before Retirement

1. Define How You Want to Spend Your Retirement

Before diving into account balances and contribution limits, get clear on what you're actually planning toward. Consider questions such as:

• What would you like an ordinary week in retirement to look like?
• Do you expect to travel or relocate?
• Are charitable goals an important part of your plans?
• Do you want to continue working in some capacity?
• Are there family or legacy priorities that could affect your spending?

These choices may have financial consequences. A retirement centered on travel may require a different spending plan than one built around staying close to home. You don’t have to predict every detail, but starting with your vision gives the financial planning process a clear direction.

2. Check Your 401(k) Allocation Within Your Full Portfolio

The financial media has spilled a lot of ink over the years giving general advice about how we should allocate our 401(k)s. Some of these even break down to specific formulas, like subtracting your age from 100 and using that number as the amount of equities one should own in their portfolio. Keep in mind, these are, in fact, general rules of thumb and are not intended to replace personalized advice. I would recommend you look at all of your assets and view them as one cohesive portfolio. Then, allocate your 401(k) as a portion of that portfolio strategy.

3. Know What You're Paying in Plan and Fund Fees

Plan Fees

Review your Summary Plan Description and discuss with your plan administrator what exactly you are paying in fees within the 401(k) plan.

Fund Fees

Then look at the funds themselves. Look up the funds in which you are invested as well as those of the other fund options you have and confirm you are using funds with reasonable fees. I would emphasize here that they need not necessarily be the cheapest fees. Cheap often doesn't mean good value. Good value means good value.

Fees are one factor in evaluating an investment option. Consider them alongside the fund's role in your portfolio and the investment strategy it follows.

4. Review Your Contribution Level and Employer Match

Review your budget and determine how much more you can save through your 401(k) plan. As we approach retirement, it can be helpful to have a focus and a discipline to invest as much as we can. If possible, max out the salary deferral contributions and, if appropriate, the catch-up contributions allowed when we are over 50.

For 2026, participants age 50 and older can contribute up to $32,500 to a 401(k). Those aged 60 through 63 may be eligible for an enhanced "super catch-up" that allows up to $35,750 if their plan offers the provision. An advisor can help you determine what applies to your situation.

Find out what, if any, matching contributions your company makes and at least contribute that much to the plan. Employer match is part of your total compensation—leaving it on the table means leaving money behind.

5. Use Plan-Sponsored Advice If It's Available

Often, plan sponsors offer advice to participants which can help distinguish between a good investment allocation and the one that fits your circumstances best. They can also answer questions about how mutual funds in the plan are invested and other portfolio or market-level information. This can help create confidence in your decision-making.

6. Evaluate Your Savings Beyond the 401(k)

For those with significant assets, the 401(k) is one piece of the picture. If most of your savings sit in a single pre-tax account, your flexibility in retirement may be limited. Consider where you stand across:

• Traditional and Roth IRAs. Contribution limits, conversion opportunities, and withdrawal rules differ from a 401(k). If you have old 401(k)s from previous employers, rolling them into an IRA may simplify your planning.
• Taxable brokerage accounts. These offer more flexibility in how and when you access funds, with different tax treatment than retirement accounts.
• Other retirement vehicles. Depending on your employment, you may have access to a 403(b), deferred compensation plan, or pension. Each has its own distribution rules and timeline.

7. Develop a Social Security Claiming Strategy

When you claim Social Security affects what you receive for the rest of your life. Claiming at 62 permanently reduces your benefit. Delaying past full retirement age increases it, up to age 70.

The right timing depends on your health, your other sources of retirement income, your spouse's benefit, and how long you expect to need the income. For couples, coordinating both spouses' claiming strategies can have a meaningful impact on total lifetime benefits.

What a Financial Advisor Coordinates for You 

At EP Wealth, these areas are coordinated under one roof.

8. Prepare for Healthcare and Medicare Decisions

Healthcare can be one of the largest and least predictable expenses in retirement. A few specific decisions deserve attention well before your last day of work:

• If you're retiring before 65, you'll need to bridge the gap between employer coverage and Medicare eligibility. COBRA, marketplace plans, and a spouse's employer plan are the most common options, each with different cost structures.
• Medicare enrollment timing matters. Missing your initial enrollment window can result in late penalties that follow you permanently. If you're still working and covered by an employer plan at 65, different rules apply.
• Medicare premiums are income-based. Higher earners may pay more through the Income-Related Monthly Adjustment Amount (IRMAA). Income in the two years before you enroll is what determines your premiums, which is one reason tax planning in the years leading up to retirement can be worth paying attention to.

9. Review Your Estate Documents and Beneficiary Designations

If your trust, will, or powers of attorney were drafted years ago, they may no longer reflect your current wishes or family situation. Retirement is a natural checkpoint to revisit them.

Beneficiary designations on retirement accounts and insurance policies are equally important. These designations typically override what's written in a will or trust, so keeping them current is critical. At EP Wealth, we work closely with our in-house estate planning team to help clients review these documents as part of the broader planning process.

10. Hire a Financial Advisor

During a transitional time, such as pre-retirement, this may be the best opportunity to hire a qualified and professional financial advisor to address the many interlocking issues that come with this period. Having an advisor to discuss everything from hopes, dreams, and fears, down to insurance coverage, trust documents, and investing strategy can make a real difference in how prepared you feel.

An advisor who coordinates across investments, tax, and estate planning can see how each piece connects. At EP Wealth, that coordination happens under one roof, with a team that works together on each client's behalf.

Retirement planning is an opportunity to cast a new vision, seek out new adventures, and develop a meaningful final phase of your life. To accomplish this, we need to follow our hearts, but also dot our I's and cross our T's. Working through a checklist like this one is a practical way to move from thinking about what to do before retirement to actually doing it.

If you're preparing for retirement and want help working through these steps, EP Wealth's financial advisors are here to help. Contact an advisor to start the conversation.

DISCLOSURES

• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability.
• Hiring a qualified advisor and/or financial planner does not guarantee investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made so that any direct or implied results or projections being represented here will be met or sustained.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.