Ready to Transition to Retirement? What To Do In Your Last 10 Career Years

The last 10 years of your career are your opportunity to successfully transition into a thriving retirement. If you haven’t heavily invested in your retirement nest egg, however, these last 10 years can feel incredibly stressful. While it’s true that you have a lot to catch up on, you are also at the pinnacle of your career, giving you more opportunity than before to build up your investments and manage your wealth strategically.

So if the only thing that’s stopping you now is not knowing where to start, look no further. This guide covers what you need to start doing in your last 10 career years to enjoy a thriving retirement.

Start by Finding the Right Professional Financial Manager for You

Everyone’s specific financial situation is different. This guide can steer you towards a thriving retirement, but the specifics will still need to be hammered out, ideally with a professional financial planner. You need professional wealth management, especially during this critical moment in your career. With a wealth manager, you can boost your nest egg with asset management, learn how you can adjust your spending budget, deal with debts, and better prepare for retirement and beyond. You need your money to work as hard as it can for you, and the only way it can do that is if you know the ins and outs of the system. If that’s not in your repertoire, it’s time to find a top-notch financial planner for your family.

Pay Down Debts Aggressively

Debts hang around like a bad smell, and the last 10 years of your career are your perfect opportunity to pay them down or get rid of them altogether, allowing you to enjoy all of your retirement funds for your pleasure. You can and should start looking into overpaying your mortgage (if you have one), consolidating high-interest debts, or even exploring debt forgiveness options, if applicable.

Catch Up Your Retirement Contributions

If you’ve been lax with your retirement contributions (paying the minimum, or perhaps not paying into it at all if you work freelance), then now is the time to catch up. Check with your employment contract and match the maximum contribution your employer can offer. If you’re over 50, you’ll also be able to make an additional catch-up contribution under the SECURE 2.0 Act. If you’re 60, then you can make an even larger catch-up contribution through your retirement plan.

Plan Your Retirement Budget

In general, it’s recommended to spend around 4% of your fund annually to support yourself throughout your retirement. This amount allows your investment to continue to grow, so you don’t need to worry about running out of funds. Someone with $1 million in their nest egg could, therefore, spend $40,000 comfortably per year.

Calculate how much money you’d have to work with, and compare that with your current budget. If it’s not enough, you may need to postpone your retirement date, adjust your budget, or defer social security benefits (as these grow 8% every year until you hit age 70, or start accessing them).

Create a Retirement Living Plan

Finally, you’ll need to create a retirement living plan. This includes considering future medical costs, where you plan to live (if downsizing makes economic sense), and other living expenses you plan on adding to your retirement. Ensure those costs are factored in, regardless of whether they’ll add to your monthly budget or to your nest egg (for example, if you sell the family home to significantly add to your retirement nest egg).