You’re rounding the bend toward retirement—and the choices you make now can shape the next 20 to 30 years. In your 60s, you may decide when to stop working, where you'll live, and how you'll manage your money. This could be the decade to finalize your plan and take confident action.
“This is when it all starts to come together,” says Kenny Davin, vice president and Fidelity branch manager in Fort Lauderdale, Florida. “You’ve built the foundation—now it’s about protecting it and making smart moves.”
Here are the key steps to focus on as you retire in your 60s.
1. Check your retirement outlook
How ready are you to retire? Your 60s are the time to get clear on your income sources, spending needs, and financial gaps—before you make the leap.
Fidelity offers a range of planning tools to help you explore different retirement scenarios, estimate expenses, and find ways to strengthen your plan. Whether you’re retiring soon or still weighing your options, our planning tools can help you make informed decisions.
2. Fully understand your retirement income and spending
Establishing a budget in retirement can be a critical step in the planning process.
Start by reviewing your expected income sources, which could include:
- Social Security benefits
- Annuities
- Pensions
- Withdrawals from retirement accounts
- Taxable savings and investments
Then map out your expenses—weekly, monthly, and annual. Include essentials like housing, food, and health care, plus discretionary spending like travel, hobbies, and gifts.
Expect a spending curve: Many retirees spend more in the early years on travel and long-postponed goals, then settle into a more predictable rhythm. Health care costs tend to rise as you get older.
Tip: Run your numbers at least a year before you plan to retire. That gives you time to adjust your budget, boost savings, or delay retirement if needed.
3. Consider guaranteed income for essentials
Fidelity believes a solid retirement plan should provide 3 things:
- Guarantees to ensure essential expenses are covered.
- Growth potential to meet long-term needs and legacy goals.
- Flexibility to refine your plan as needed over time.
One smart strategy is to match your essential expenses with guaranteed income sources like Social Security, pensions, or annuities. These aren’t affected by market swings and can help you maintain your lifestyle even during economic downturns.
“Think of guaranteed income as your retirement safety net,” says Davin. “It’s what lets you sleep at night, knowing your basics are covered.”
Once your basics are covered, you can use other savings and investments to fund discretionary spending. Read Fidelity Viewpoints: 3 keys to your retirement income plan
Tip: Try Fidelity’s Retirement Income Calculator to explore ways to build your predictable income.
And, Finding health insurance before Medicare can help you understand where to find health insurance coverage and how much Medicare may cost so you can set your retirement budget.
4. Make a Social Security claiming plan
Social Security is a key part of guaranteed income. Your 60s are the time to make a claiming strategy.
Get benefit estimates and earnings history at ssa.gov. Use Fidelity’s Social Security Benefits Calculator to model different claiming scenarios.
Many people claim benefits as early as age 62, but delaying until age 70 can increase your monthly payout by about 8% per year beyond your full retirement age (generally 67).
“Those delayed credits could go a long way down the line to provide that comfortable income in retirement,” Davin says.
If you’re eligible for a pension, review your plan’s rules and payout options. Consider how it fits into your overall income strategy.
5. Pay down debts
Debt can be a major obstacle to a secure retirement. Focus on eliminating high-interest balances—especially credit card debt.
According to AARP:1
- Nearly half of adults 50+ with credit card debt use it for basic living expenses.
- 3 in 10 have more debt than a year ago.
- Nearly half owe $5,000+, and 28% carry $10,000+ balances.
If you’re still working, use this time to aggressively pay down debt. Consider:
- Consolidating balances to lower your interest rate.
- Using the avalanche or snowball method to tackle high-interest bills.
- Avoiding new debt unless absolutely necessary.
Tip: If you’re torn between paying down debt or saving more, consult a financial professional to understand the potential trade-offs.
6. Consider trimming your biggest expense
Housing is one of the biggest levers in your retirement budget. Downsizing or relocating can dramatically reduce your monthly expenses—and unlock equity to help fund your future.
If you live in a high-cost area, consider moving to a region with lower taxes, cheaper real estate, and reduced living costs. But it’s not just about geography—it's about lifestyle too.
“Few decisions have as big an impact on your expenses and wealth as your home,” says Davin. “It’s not just where you live—it’s how you live.”
Why it matters:
- Your home affects more than your mortgage: Utilities, insurance, taxes, and maintenance all add up.
- On average, home equity makes up about 70% of net worth for older Americans, according to the US Census Bureau.
- Downsizing can free up cash, reduce upkeep, and simplify your financial life.
Tip: Review your current housing costs and how they fit into your retirement income plan.
7. Adjust your investment strategy for retirement
In this life stage, investors typically transition from building wealth to preserving it—and that means rethinking your investment mix.
You may still need stocks for long-term growth, but stability and flexibility could also become high priorities. A cash cushion can help you weather market swings and cover near-term expenses without tapping investments at the wrong time.
“The goal isn’t to eliminate risk—it’s to manage it. You want enough growth to support a long retirement, but enough safety to sleep at night,” Davin explains.
If you’re retiring within the next 3 to 5 years, it can make sense to shift to a more conservative allocation to help manage what’s known as sequence of returns risk.
Tip: Check your allocation and rebalance as needed to help ensure that your investment mix doesn’t veer to far from your intended risk level.
8. Plan your withdrawal strategy
Once you retire, your focus may shift from saving to spending. A sustainable withdrawal strategy can help you avoid running out of money.
Tips for building a sustainable withdrawal plan:
- Align withdrawals with your investment mix and market conditions.
- Consider guaranteed income (like Social Security or annuities) to cover essentials.
- Having accessible funds (cash, CDs, money markets) can help you avoid selling other investments during downturns.
Fidelity suggests a conservative drawdown rate—typically 4%–5% of your savings in year one, then adjust for inflation annually.
For example, if you’ve saved $1 million, a 4% withdrawal rate would mean taking $40,000 in year 1. In year 2, you’d increase that amount based on inflation to maintain your purchasing power.
When the market dips, it could make sense to rein in discretionary spending to limit withdrawals if your investments are down. “That’s why Fidelity suggests using guaranteed income for essentials. When discretionary expenses are covered by your portfolio, you may have more flexibility when it comes to adjusting your spending,” Davin says.
Read Fidelity Viewpoints: How to manage cash flow in retirement
Tip: Use Fidelity’s retirement planning tools to model different withdrawal scenarios and adjust your plan as needed. Try Fidelity’s Retirement calculator and tools.
9. Keep an eye on tax law changes
Tax rules can shift—and even small changes can impact your retirement income.
Under the new tax law, people age 65 and older will get an additional $6,000 deduction that begins to phase out at incomes of $75,000 for single filers and $150,000 for joint filers. Note: The enhanced deduction would be in addition to the $2,000 single filers and $3,200 married filers are currently able to deduct if they are 65 or older.
“Even small changes in tax law can have a big impact on your retirement income. It can be worth reviewing your strategy every year,” says Fidelity’s Davin.
Tip: Consider working with a tax or financial professional to understand how new rules affect your Social Security benefits, investment income, and withdrawal strategy.
Bring it all together
Your 60s are a time of transition—but also opportunity. With the right planning, you can turn uncertainty into clarity and build a retirement that’s financially secure and personally fulfilling.
“This is the moment to take stock, make smart moves, and step into retirement with confidence,” Davin says.
Whether you’re retiring soon or still weighing your options, a financial professional can help you connect the dots and create a plan that works for you.