A retirement planning checklist turns a vague worry about the future into a sequence of concrete steps. The goal is not to predict markets or pick perfect investments; it is to make sure the major decisions — how much you save, where you hold it, when you claim benefits, and how you cover health costs — are handled deliberately rather than by default. The checklist below is organized roughly in the order most households should tackle it, though many items run in parallel.
1. Set a Savings Target and Automate It
Fidelity's widely cited guideline suggests saving about 15% of gross income (including any employer match) starting in your early 20s, with a target of roughly 10 times your final salary by age 67. Treat these as benchmarks, not rules. Your actual number depends on expected spending, other income sources such as Social Security and a pension, and how long you expect retirement to last.
- Estimate annual retirement spending, then subtract guaranteed income to find the gap your portfolio must cover.
- Increase your 401(k) deferral with every raise until you hit the 15% benchmark or your plan's limit.
- Automate contributions so saving happens before you see the money.
For 2025, the IRS allows up to $23,500 in employee 401(k) deferrals, with an additional $7,500 catch-up for those 50 and older and a larger catch-up for workers aged 60 to 63 under the SECURE 2.0 rules.
2. Use the Right Tax-Advantaged Accounts
Where you hold money matters as much as how much you save. A sensible default is to contribute enough to your 401(k) to capture the full employer match, then fund an IRA or Roth IRA, then return to the 401(k).
- Traditional 401(k) and IRA: contributions may be tax-deductible now, and withdrawals are taxed as ordinary income in retirement.
- Roth 401(k) and Roth IRA: funded with after-tax dollars, qualified withdrawals are tax-free. Roth IRAs have no required minimum distributions during the owner's lifetime.
- Health savings account (HSA): if you have a qualifying high-deductible health plan, the HSA is triple tax-advantaged and can serve as a supplemental retirement account.
Holding a mix of pre-tax and Roth balances gives you flexibility to manage taxable income later, which matters for Medicare premiums and Social Security taxation.
3. Plan for Social Security and Required Minimum Distributions
Social Security is the foundation of most retirements, and the claiming decision is permanent for most people. Full retirement age is 67 for anyone born in 1960 or later. Claiming at 62 reduces benefits by up to 30%, while delaying to 70 increases them by about 24% above the full-retirement-age amount. Married couples should coordinate claiming strategies, since survivor benefits are based on the higher earner's record.
On the withdrawal side, required minimum distributions (RMDs) now begin at age 73 for those born 1951–1959 and age 75 for those born in 1960 or later. Missing an RMD triggers a 25% excise tax, reduced to 10% if corrected promptly. Consider Roth conversions in lower-income years before RMDs and Medicare premiums push your taxable income higher.
4. Address Healthcare, Long-Term Care, and Estate Documents
Fidelity's Retiree Health Care Cost Estimate has put the average cost of healthcare in retirement for a 65-year-old couple at roughly $300,000 or more, excluding long-term care. Build this into your plan rather than treating it as an afterthought.
- Enroll in Medicare on time: the initial enrollment window is seven months around your 65th birthday. Late enrollment can trigger permanent Part B and Part D penalties.
- Check whether your retiree coverage or Medicare Advantage plan fits your doctors and prescriptions.
- Consider long-term care insurance or earmark dedicated savings; Medicare does not cover most custodial care.
- Update beneficiary designations, a will or trust, a durable power of attorney, and a healthcare directive.
5. Review the Plan Every Year
A retirement plan is a living document. Once a year, rebalance your portfolio to your target allocation, revisit your savings rate, and check that your asset location still makes sense. In your final working years, build a cash reserve of one to three years of spending so you are not forced to sell investments during a downturn. Also project your tax brackets for the first few retirement years and decide whether to fill lower brackets with Roth conversions or partial withdrawals.
What to Remember
A retirement planning checklist is less about precision than about coverage. Save consistently toward a realistic target, use tax-advantaged accounts deliberately, make the Social Security and Medicare decisions with full information, and revisit the plan annually. Small, repeated adjustments — raising your deferral rate, choosing the right account type, claiming benefits at the right age — often matter more than any single investment pick.
