2027 is closer than it looks

Even a December 2027 retirement date leaves barely a year to plan. Getting the money settled now is what makes the last workday feel calm instead of uncertain.

“the end of your career is still right around the corner”

Your costs may not drop

Losing the mortgage and the commute helps, but Medicare premiums, hobbies and travel can eat the savings. Assuming a cheaper retirement is how budgets break.

Budget down to the $9

Write down everything: property tax, auto insurance, the small odd purchases. You want one honest annual number, not a rough guess.

“That budget should include everything from your property tax bill to your auto insurance costs to the $8 or $9 purchases”

Leave room for surprises

Cars still break, appliances still die, phones still need replacing. Bake those costs into the plan so an ordinary repair isn't an emergency.

“Just because you're retired doesn't mean your car or home won't need repairs.”

Know what Social Security pays

A big nest egg makes benefits a side dish; a modest one makes them the main course. Either way, run the numbers, because your filing age drives the check.

62, 67, or 70

Age 62 is the earliest and comes with a permanent cut. Full retirement age is 67 if you were born in 1960 or later, and every year you wait past it adds 8% up to age 70.

“Each year you wait gives your benefits a permanent 8% increase, up until age 70.”

Inflation quietly eats savings

Social Security gets a cost-of-living bump each year, but your portfolio doesn't. Keeping a real stock allocation is how the rest of your money keeps pace.

Cash cushion beats panic selling

If the market tanks while you're drawing income, you lock in losses. Hold one to three years of living costs in cash and keep a stripped-down backup budget ready.

“a good plan is to have a cash cushion that lets you cover one to three years' worth of living costs”