Ten years sounds like a very long time. But for retirement planning, it is actually not that much. But it is still enough time to make a big difference if you are very careful. Here is what you must focus on in the last ten years before you stop working.
Check Your Money
A report from the Federal Reserve in 2023 says that 56% of Americans think they are behind on saving. Sometimes, people just do not know where they stand.
It is better to know the truth, even if the truth is a bit scary. This is because that is how you start to make progress. You can use the calculator from Fidelity or the “estimator” on the ssa.gov website to see your numbers.
Put in More Money
When you are age 50 or older, the IRS lets you put extra money in your accounts. This is called “catch-up contributions.” In 2026, the rules allow you to put up to $31,500 in a 401(k) and $8,500 in an IRA every year. This is more than the normal limits for younger people.
If you could not save a lot of money when you were younger, this time is very important. Usually, you are making the most money of your life right now. You should use this money to save as much as you can.
Kill High-Interest Debt
Taking credit card debt into retirement is very expensive. When you stop working and have a fixed amount of money, it is hard to pay interest rates that are higher than 20%.
If your house loan (mortgage) has a low rate, it is okay. But debt from things you buy with high interest should be gone before you stop. Every dollar you use to pay off a 22% interest card is like getting a 22% reward on your money.
Change Your Investments
When you are 10 years away from stopping work, your money should slowly move to be more stable.
This means less risky things. You do this so that if the market goes down in your ninth year, you do not have to wait longer to retire. A simple way is to make your stocks 1% less every year as you get closer to retirement.
Plan for Health Costs
In America, Medicare starts at age 65. If you want to stop working earlier, you need a plan for the years in between. You should look at plans from the marketplace, COBRA, or your partner’s job now. Do not wait until the last minute.
Finish Paying Your House Loan
If you do not have a house payment (mortgage) when you retire, you need much less money every month. Even if you just pay one extra payment every year during this last decade, it can make your loan finish much faster and save you a lot of money on interest.
Decide How You Will Live
The numbers are important, but you also need to know how you want to live. Will you move to a smaller house? Will you move to a place where things are cheaper? Do you want to travel or work a little bit?
These choices change how much money you need and how long your savings will last. If your plan is not clear, your preparation will not be good.
Ten years is a short time to focus, not a long time to relax. The choices you make right now, about saving money, debt, health, and your investments, will decide the retirement you really get. Start by being honest about where your money is today, and then move forward with a plan.
