Is Your Retirement on Track? A Mid-Year Check-in for March

March is an excellent time for a financial check-in to ensure your retirement plan remains on track. With the first quarter of the year behind you, assessing your progress now can help you make necessary adjustments and stay on course for a secure future. Whether you are nearing retirement or still have years to go, this mid-year check-in will provide valuable insights and action steps to improve your financial readiness.

1. Review Your Retirement Goals

Take a moment to reassess your retirement objectives. Ask yourself:

• Have my retirement goals changed?

• Am I still planning to retire at my target age?

• Do I need to adjust my expected lifestyle in retirement?

Action Steps:

• Update your retirement plan to reflect any changes in your goals.

• Adjust your financial projections if your plans have shifted.

2. Check Your Savings Progress

Your savings rate is a critical factor in achieving your retirement goals. Now is the time to evaluate whether you are on track.

Action Steps:

• Review your 401(k), IRA, and other retirement accounts to see how much you’ve saved.

• Maximize your contributions—if you haven’t yet, consider increasing your savings rate.

• Take advantage of catch-up contributions if you’re 50 or older.

3. Assess Your Investment Performance

Your investments should align with your risk tolerance, retirement timeline, and financial goals.

Action Steps:

• Rebalance your portfolio to maintain the appropriate mix of assets.

• Check for underperforming investments and consider reallocating funds.

• Ensure diversification to reduce risk and improve stability.

4. Evaluate Your Social Security Strategy

Social Security is a significant source of retirement income for many retirees. Reviewing your strategy now can help you maximize benefits.

Action Steps:

• Review your Social Security statement and projected benefits.

• Decide when to claim benefits—delaying Social Security past full retirement age increases your monthly payments.

• Coordinate with your spouse’s benefits if applicable.

5. Assess Your Debt Situation

Managing and reducing debt before retirement can ease financial stress and improve cash flow.

Action Steps:

• Pay down high-interest debt like credit cards and personal loans.

• Consider paying off your mortgage early if feasible.

• Avoid taking on new debt as you approach retirement.

6. Review Healthcare and Insurance Coverage

Healthcare expenses are a major factor in retirement planning. A proactive approach can save you money in the long run.

Action Steps:

• Check your health insurance plan and consider adjusting coverage if needed.

• Plan for long-term care costs by exploring insurance options.

• Review Medicare enrollment options if you’re approaching 65.

7. Plan for Taxes in Retirement

Proper tax planning can help you maximize your retirement income and reduce tax burdens.

Action Steps:

• Consider Roth IRA conversions to reduce future taxable income.

• Plan withdrawals strategically from taxable and tax-deferred accounts.

• Review any tax law changes that may impact your retirement plan.

8. Update Your Estate Plan

An up-to-date estate plan ensures that your assets are protected and your wishes are honored.

Action Steps:

• Review and update your will and trust documents if necessary.

• Confirm that beneficiary designations on your accounts are current.

• Set up power of attorney for healthcare and financial decisions.

9. Meet with a Financial Advisor

A professional can provide personalized insights to help keep your retirement plan on track.

Action Steps:

• Schedule a financial review meeting to discuss progress and adjustments.

• Get recommendations on tax strategies, investments, and savings goals.

• Ensure you are prepared for the next phase of your retirement journey.