"I want to retire in the next few years, but I'm worried I'll miss something important."

You're right to think ahead. According to Fidelity's 2024 Retirement Analysis, 71% of recent retirees wish they'd started planning five years earlier[1].

"What should I do first?"

Most people jump straight to "Do I have enough money?" But there's actually a more important question: "How much money will I actually need?"

A 2023 T. Rowe Price study found that most new retirees actually spend 20-40% less than they expected to in retirement[2]. Why? Because they overestimated some costs and completely forgot others.

"The Most Important Number: Your Guaranteed Income Gap"

This is the number that actually matters most, and almost nobody talks about it.

Here's how to find yours:

• Add up your guaranteed monthly income:
• Social Security (average $1,907 in 2024)[4]
• Pension if you have one
• Any other guaranteed income
• Add up your must-pay monthly expenses:
• Housing
• Utilities
• Healthcare
• Food
• Basic transportation
• Subtract guaranteed income from must-pay expenses

That difference is your "Guaranteed Income Gap" - the amount you need to fill from your savings each month.

Real Example:

Monthly Must-Pay Expenses:

• Housing: $1,800
• Utilities: $300
• Healthcare: $500
• Food: $600
• Basic transportation: $300 Total: $3,500

Monthly Guaranteed Income:

• Social Security: $2,000
• Small pension: $500 Total: $2,500

Guaranteed Income Gap = $1,000 per month

This means you need your savings to reliably generate $1,000 every month. According to J.P. Morgan's 2024 retirement analysis[15], retirees who cover at least 80% of their must-pay expenses with guaranteed income are significantly more likely to maintain their lifestyle throughout retirement.

Step 1: Figure Out Your Real Numbers

The Bureau of Labor Statistics shows the average retiree household spends[3]:

• 35% on housing
• 16% on healthcare
• 14% on food
• 16% on transportation
• 19% on everything else

"What about healthcare? That's what keeps me up at night."

Here are the real 2024 numbers from Medicare.gov[6]:

• Part B: $174.70/month (standard premium)
• Part D: Average $34/month for prescriptions
• Medigap Plan G: Average $150/month
• Annual deductible: $240 for Part B

Plus, Fidelity estimates the average couple needs $315,000 saved just for healthcare in retirement[7].

Your Year-By-Year Checklist

5 Years Before Retirement

The IRS lets you contribute extra to retirement accounts after 50[8]:

• Extra $7,500 in 401(k) - total $30,500
• Extra $1,000 in IRA - total $8,000
• Extra $1,000 in HSA if eligible - total $4,850 (single) or $8,750 (family)

4 Years Before

Check Social Security scenarios[9]:

• Age 62: 30% reduction
• Age 67: Full amount
• Age 70: 24% increase

3 Years Before

Build your cash cushion. Vanguard research shows keeping 2 years of expenses in cash reduces risk significantly[10].

2 Years Before

Healthcare planning becomes crucial:

• Average COBRA cost: $623/month for single coverage[11]
• Average ACA marketplace plan: $496/month before subsidies[12]

1 Year Before

Medicare enrollment windows[13]:

• Initial Enrollment: 3 months before turning 65
• General Enrollment: January 1 - March 31
• Special Enrollment: 8 months after work coverage ends

"What mistakes should I avoid?"

The big ones we see:

1. Not calculating your Guaranteed Income Gap
2. Forgetting about taxes
3. Underestimating healthcare costs
4. Taking Social Security too early
5. Not having a backup plan

"What should I do right now?"

• This Week: Track these categories (Bureau of Labor Statistics model)[14]:
• Housing (35% of retirement spending)
• Transportation (16%)
• Healthcare (16%)
• Food (14%)
• Other (19%)
• This Month:
• Calculate your Guaranteed Income Gap
• Get your Social Security statement at SSA.gov
• List all retirement accounts
• Check employer benefits
• Next Steps: Take our 2-minute quiz to:
• See where you stand
• Get a personalized timeline
• Know what to do next
• Connect with help if you need it

[TAKE THE QUIZ]