Financial Checklist at 60

Five years to Medicare. The decisions you make now define your retirement.

At 60, retirement is no longer a distant concept — it's a near-term logistics problem. You should have a concrete date, a detailed budget, and a multi-year withdrawal plan. The next 5 years are critical: sequence of returns risk is at its peak, healthcare bridge planning is urgent, and Social Security claiming decisions are imminent. This is not the time for big bets — it's the time for deliberate, risk-managed execution.

Net Worth Target
9-10x annual salary. Fidelity recommends 8x salary by 60 and 10x by 67. You should have a clear line of sight to your retirement number.
Retirement Savings
8-10x annual salary in retirement accounts. If retiring at 65 with $100K in desired retirement income, you'd want roughly $2.5M (using the 4% rule, before accounting for Social Security).
Emergency Fund
12-18 months. A forced early retirement or health event is the biggest risk at 60. Having a cash cushion lets you ride out market downturns without selling at the bottom.

Top Priorities at 60

1

Lock in your retirement date and budget

Pick a specific retirement date (month and year) and build a detailed budget from tracked spending — not guesses. Factor in increased travel in the 'go-go years' and healthcare costs before Medicare.

2

Build your Social Security bridge fund

If you're delaying Social Security to 70 (recommended for the higher earner in a couple), you need to fund 3-8 years of living expenses from your portfolio before claiming. Set this money aside in safe assets — it's your bridge, not your growth portfolio.

3

Execute Roth conversions strategically

These are your lowest-income years — between retirement and RMDs (73-75) and before Social Security. Convert pre-tax IRA dollars to Roth while your tax bracket is low. Manage the conversion size to stay under IRMAA thresholds.

4

Understand IRMAA thoroughly

Medicare Part B and Part D premiums are income-based. IRMAA uses your MAGI from 2 years prior. At 63, your income determines your Medicare premiums at 65. Avoid the 'IRMAA cliff' — a single dollar over a threshold increases premiums by $1,000+/year.

5

Build a tax-efficient withdrawal sequence

The standard order is: (1) RMDs (when they kick in), (2) taxable accounts (capital gains rates), (3) tax-deferred accounts (ordinary income rates), (4) Roth (tax-free, save for last). But your specific situation may call for proportional withdrawals to manage tax brackets.

Action Checklist

Set a specific retirement date and build a detailed retirement budget
Max all catch-up contributions while still working
Build a Social Security bridge fund in safe assets (if delaying to 70)
Start Roth conversions in low-income years before RMDs
Understand IRMAA thresholds and manage MAGI accordingly
Finalize your withdrawal strategy and sequence of accounts
Get long-term care insurance if you haven't already (last call before premiums spike)
Update estate plan, wills, trusts, and healthcare directives
Review all insurance — reduce or eliminate unnecessary life insurance
Check Social Security statement and run final claiming scenarios
Plan for required minimum distributions (RMDs start at 73 or 75)
Consider where you want to live in retirement — tax impact, cost of living, proximity to family

Common Mistakes to Avoid

Claiming Social Security at 62 without running the math — the difference between claiming at 62 and 70 can be $250,000+ in lifetime benefits for a high earner
Underestimating healthcare costs pre-Medicare — COBRA, ACA marketplace, or retiree health plans can easily cost $15,000-25,000/year per couple
Too much in company stock — a concentrated position in employer shares right before retirement is catastrophic risk; diversify while you can
Not modeling inflation — 3% inflation halves purchasing power in 24 years; a 60-year-old planning to 90 needs to protect against serious erosion
Forgetting about IRMAA — a $1,000 Roth conversion that pushes you one dollar over an IRMAA threshold can cost $2,000+ in additional Medicare premiums

Insurance Checklist

Term life: likely no longer needed unless you have dependent children or a special-needs dependent; consider canceling to save premiums
Disability: may no longer be needed if you're close to retirement with adequate savings
Umbrella: maintain — net worth is likely at its peak; lawsuits don't retire
LTC: if not purchased by now, traditional LTC becomes very expensive; consider hybrid LTC/life policies or self-insurance
Healthcare bridge: finalize plan for the gap between retirement and Medicare at 65
Medicare planning: understand Part A (free), Part B ($185/month standard in 2025 + IRMAA if applicable), Part D (drugs), and Medigap vs Medicare Advantage

Estate Planning

Full estate plan review — will, trust, POAs, healthcare directives, guardianship (for special-needs dependents)
If using a revocable living trust, verify all intended assets are titled in the trust name
Beneficiary audit on every account, policy, and retirement plan
Consider irrevocable trust structures for estate tax planning if net worth exceeds the exemption
Plan for charitable giving — QCDs at 70½, CRTs (charitable remainder trusts), DAFs (donor-advised funds)
Talk to heirs about inheritance plans — set expectations, explain decisions

Tax Strategies

Execute Roth conversions before RMD age and before claiming Social Security
Manage MAGI to stay under IRMAA thresholds
Consider Qualified Charitable Distributions (QCDs) starting at 70½ as a tax-efficient giving strategy
If relocating to a tax-friendly state, establish domicile properly (183+ days, driver's license, voter registration, primary care physician)
Tax-gain harvesting in low-income years — realize capital gains at 0% rate while income is low
Model RMD impact on tax brackets starting at 73 or 75

Career & Income Growth

Time your retirement for maximum financial benefit — bonus payout, equity vesting, Rule of 55 eligibility for 401(k)
Consider consulting or part-time work as a bridge — keeps income, purpose, and social connections
Negotiate your exit — severance packages, retiree health benefits, accelerated equity vesting, consulting contracts
Build your retirement identity beyond work — invest in hobbies, relationships, and community before you need them

Explore Further

Interactive Tools

Social Security OptimizerRetirement Withdrawal SafetyRoth Conversion LadderBridge Account CalculatorEstate Tax Planner

In-Depth Guides

Medicare IRMAA ExplainedSocial Security Claiming StrategiesHealthcare Before MedicareRetirement Withdrawal Order

Checklists for Every Age

Financial Checklist at 25Financial Checklist at 30Financial Checklist at 35Financial Checklist at 40Financial Checklist at 45Financial Checklist at 50Financial Checklist at 55Financial Checklist at 60Financial Checklist at 65Financial Checklist at 70

Sources

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