A Q4 Retirement Planning Checklist
The final months of the year tend to fly by. Between holidays, family gatherings, and year-end deadlines, it’s easy to put financial planning on the back burner. But the fourth quarter is also one of the best times to check in on your retirement strategy and make sure you’re ending the year in a strong position.
Here’s a year-end checklist of important moves to consider before December 31.
1. Review Your Retirement Contributions
If you have access to a workplace retirement plan, like a 401(k), now is the time to review your contributions. For 2024, the maximum contribution is $23,000, with an additional $7,500 in catch-up contributions available if you’re age 50 or older. Even if you can’t max out your plan, increasing your contributions before year-end can help boost long-term savings.
If you don’t have a workplace plan, or if you’d like to add more flexibility to your retirement strategy, now is also a good time to review IRA contribution options. You have until the tax-filing deadline in April 2025 to make contributions for the 2024 tax year, but contributing earlier allows your money more time to work for you.
2. Explore Guaranteed Income Options
As you near retirement, a common concern is making sure your savings will last. Insurance-based products, such as fixed annuities, can provide guaranteed income streams you won’t outlive, regardless of market performance. Reviewing your income strategy before year-end can help ensure you’re on track for a more secure retirement.
3. Protect What You’ve Built
The fourth quarter is a smart time to revisit your protection strategies:
- Life insurance: Is your coverage still aligned with your family’s needs? Have there been changes in health, income, or dependents?
- Long-term care planning: Do you have a strategy for potential healthcare costs later in life? Insurance solutions can help protect retirement assets from being depleted by long-term care expenses.
4. Reevaluate Your Retirement “Number”
Even if retirement is years away, it’s helpful to check whether your current strategy aligns with your future needs. Ask yourself:
- Will your income sources (Social Security, pensions, annuities, or other guaranteed options) cover your essential expenses?
- Do you have a plan in place for discretionary spending and healthcare costs?
- Are your protection strategies strong enough to provide stability if circumstances change?
5. Don’t Forget Flexible Spending Accounts (FSAs)
Unlike health savings accounts (HSAs), most FSA balances must be used by year-end (some plans allow a short grace period). Now’s the time to schedule any last-minute appointments or stock up on eligible expenses such as:
- Dental and vision care
- Eyeglasses or contact lenses
- Over-the-counter medications
If you have both an FSA and an HSA, check your plan rules, since some limit FSA use to dental and vision costs.
The Bottom Line
The fourth quarter is full of distractions, but it’s also the perfect time to fine-tune your retirement plan before the year closes. By reviewing contributions, strengthening your protection strategies, and making smart year-end decisions, you can enter the new year with more confidence in your financial future.
Sources
- IRS. “Retirement Topics – 401(k) and Profit-Sharing Plan Contribution Limits.” Updated 2024. IRS.gov
- IRS. “IRA Contribution Limits.” Updated 2024. IRS.gov
- IRS. “Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans.” 2024. IRS.gov
- Social Security Administration. “Retirement Benefits.” SSA.gov
Note: This blog post is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making investment decisions.