Guide to preparing for retirement

Creating a time frame for when you plan to retire is an important first step. This lets you know how much time you have left to prepare, and how long your savings need to last. You're not just choosing a date—you’re coordinating your future income, benefits, and health care.

If you haven't settled on timing yet, here are some things to consider when making the decision:

Current finances and future income sources. Your savings, anticipated expenses, and retirement goals are among the reasons you may want to continue working.

Estate planning goals. How long to stay in the work force may impact your legacy aspirations.

Health care needs. If you or a loved one rely on your employer-sponsored health plan or are anticipating significant medical needs, you may be compelled to remain in the workforce longer. Learn how to plan for health care costs.

Coordinating timing with your spouse or family. Maybe you're planning to take a dream vacation abroad, tackle a major home repair, or help out with your grandchildren more in retirement. Speak to your loved ones about whether or when stepping back from work could be most beneficial.

Once you've determined how much you need to save for the retirement lifestyle you want, you may discover that, like many people, you have a savings gap to address. That doesn’t mean you're behind. It means you're doing the work.
 
You can start to bridge the gap by maximizing contributions to your existing requirement accounts and using catch-up contributions to your advantage in any eligible accounts. You can also open new retirement accounts or explore other ways to save that complement your existing plans.

Take time to check that your estate planning documents or insurance policies are up to date. And if you don't have an estate plan, now's a good time to create one. Planning ahead today can help ensure your intentions for your wealth are carried out according to your wishes, which will give you and your loved ones peace of mind for the future.

As retirement gets closer, you may wish to adjust your approach by shifting your portfolio to match your evolving situation. Several factors play a role in determining if your portfolio still fits your risk tolerance and time horizon.

Some pre‑retirees may care more about managing risk and tax efficiency than maximizing growth, while others may have insufficient savings or ambitious income goals that require more aggressive strategies. Retirement may still be a little ways off as well, so it might feel too early to adjust your risk tolerance.

No 2 paths to retirement look the same, and your age, assets, and goals all play a role in shaping the right approach. It's a personal choice, and if you're not sure, our Investor Questionnaire can help you decide what's right for you.

Saving for retirement is only part of the journey. Turning your savings into reliable income is where it all comes together. A well‑designed withdrawal strategy for your retirement accounts helps you manage risk, taxes, and cash flow, making it one of the most important decisions you'll face in retirement. The strategy should also align with your goals, assets, and lifestyle. You can read Vanguard's Principles for Retirement Income to learn more

If you're concerned your current plan is unfavorable, take action by adopting tax-efficient strategies. A Roth conversion may help certain individuals prepare for retirement by shifting when—and how—taxes are paid. When coordinated with a broader withdrawal strategy, such as the 4% rule, it can provide more control over retirement income, tax exposure, and long‑term flexibility.

You may want to consider consolidating your financial assets to make them easier to manage. Vanguard can also provide additional advice for optimizing your retirement income so you'll be ready.