Ten years before reaching retirement age, you can take many practical steps that guarantee you a good income that covers your expenses, and guarantees you a minimum level of financial stability, so what are these steps?

In a report published by the American site "kiplinger", writer David Roddick says that most people do not plan well for the post-retirement period, but that soon becomes a reality in the last years before leaving the job.

A Gallup poll in 2019 found that 55% of Americans are 55 or older;

They are confident they will have enough money for a comfortable retirement, the highest level since 2008, and a survey conducted after the outbreak of Covid-19 showed that their outlook is still mostly optimistic.

According to the author, ensuring a safe and comfortable retirement needs to take some important steps at least 10 years before leaving work.

Imagine your life after retirement

It is imperative to imagine your life and what you would like to do after retirement, before you begin preparing for that stage and determining the necessary savings.

To this end, the following questions should be answered: When do you want to retire?

And where will you retire?

What do you intend to do?

Of course, this includes lifestyle changes, travel and new hobbies.

The matter should be discussed between spouses, and jointly outlined, and you must take into account the possibility of new people entering your life, such as grandchildren, which may lead to changing some plans.

Retirement budget estimation

This means that you estimate the amount of savings needed to spend after retirement, and there are some rules for estimating this number, such as that the value of your savings equals 12 times your monthly salary, or that you have enough money to spend 80% of your annual income before retirement.

Sri Reddy, an expert at Principal Financial Group, believes that these quick methods of estimating retirement savings do not take into account the different circumstances from person to person.

Therefore, it prefers to determine the budget according to different areas of spending, such as housing, food, travel and insurance.

Reddy believes that the Covid-19 pandemic has given employees who have moved to work from home an opportunity to try a similar version of the retirement budget, where additional expenses such as eating out, buying new clothes and transportation costs have stopped.

But with the need to estimate expenses for travel and other recreational activities, which were temporarily stopped by the pandemic, Riddy also suggests thinking about working part-time after retirement, to achieve additional income from an activity that you enjoy.

When thinking about your life after retirement, it should be discussed between spouses and outlined jointly (Getty Images)

Check your savings

It is imperative to verify at the present time that your savings are compatible with your goals and ambitions after retirement, especially that the time is still right to increase those savings, and you can hire a financial advisor or a retirement planner, or use one of the free applications available on the Internet.

Save as much as possible

The opportunity should not be missed during the last years before retirement to increase your savings and take advantage of all options, such as compensation contributions for individuals 50 years of age or older.

Usually, the last years preceding retirement coincide with the enrollment of children in university and the increase of their expenses, and in this regard Reddy warns against focusing on the needs of children and forgetting the needs of the retirement period. To a stable financial position. "

Avoid big changes

American financial planner Rick Myers believes that one of the keys to a successful retirement is avoiding big changes, such as changing the home, car, or lifestyle in general, and these changes will put a lot of pressure on the retirement plan.

So think carefully before planning any major change in your life during this stage.

Review your investments

The closer your retirement period, the more conservative your investments need to be, and Reddy suggests that you keep enough fixed-income assets so that your net worth or lifestyle is not seriously affected by market fluctuations.

One of the best things before retirement age is not to have any debts or loans (Getty Images)

Tax advance planning

Kill Financial Partners, financial planner Jeremy Keel, stresses that lower taxes should not be expected after retirement.


You may actually try to reduce your retirement account withdrawal to control tax, but your financial needs may not help you to do so.


One way to reduce the future tax value is to use Roth IRI or Roth 401 (Kai) accounts, which help retirees strike a balance between their taxable income and their financial needs without paying a higher tax value.

Covering health care costs

Although government programs may provide for a large portion of healthcare expenditures, you will still be required to pay for expenses from your own money.

It is therefore appropriate that you plan now for your long-term healthcare costs.

And if you decide to get health or life insurance, your chances are better to get a good contract when you are in your fifties.

Get rid of debt

Sri Reddy says that one of the best things before retirement age is not to have any debts or loans, so try during the last years before retirement to get rid of debt with higher or lower interest rates until all debts are paid.

Expect worst-case scenarios

No matter how prepared you are for the future, everything may not go as planned in the end, and financial expert Steve Barrish recommends keeping at least 6 months of living expenses in liquid assets, such as a savings account or certificate of deposit, so you can manage the difficulties. You should also expect the worst-case scenarios, such as retirement several years earlier than planned.