The Final Stretch

As you get closer to retirement, your priorities may start to shift. As the demands that once defined your day-to-day – building a career, paying down a mortgage – ease, new questions take their place: How will you cover healthcare costs when you retire? Are you prepared for the possibility of a long lifespan? Will you be able to afford the lifestyle you want?

This stage can offer more flexibility than earlier years, but – as we explore in our Health and Wealth Guidebook – there’s less time to change course. By making intentional choices around your health and long-term plans now, you can make the most of your remaining working years and prepare for what’s next.

Making the Most of the Final Stretch

This stage offers a final opportunity to strengthen your financial position while you still have a reliable income. With fewer competing expenses, you may have more ways to redirect cash flow where it matters most.

On the healthcare side, that might mean increasing contributions across retirement accounts, with catch-up opportunities becoming available as you approach retirement. While inflation and greater care needs will likely increase your medical expenses, your Baird Financial Advisor has planning tools to help you prepare for these costs. If you’re thinking about retiring before Medicare coverage begins (traditionally age 65), planning for that coverage gap will also require additional foresight.

This is also a natural point to revisit how your assets are allocated. As retirement draws closer, many shift toward a more conservative investment mix to manage risk. That can help reduce volatility, but don’t pull back too far: With a retirement that could last 40 years or more, your portfolio still needs long-term growth. The goal is to strike a balance between stability today and growth for the years ahead.

Planning for Healthcare and Longevity

As you consider the years ahead, it’s important to not lose sight of lifestyle changes you can make today. Improving nutrition and increasing physical activity and sleep quality can reduce the risk of more serious issues later on. Over time, those changes may also delay or reduce the need for costly medical care.

At the same time, health and long-term care planning come more clearly into focus at this stage. Your Baird Financial Advisor team can help you understand how Medicare works and evaluate ways to plan for coverage gaps, especially if you’re considering retiring before eligibility begins. It’s also a time to make decisions about long-term care. Most people will need some form of care – such as in-home support or assisted living – and these costs are generally not covered by Medicare. Long-term care insurance is often more accessible and affordable now, while you still may be in good health. Exploring how these costs could be covered – through insurance, savings or both – can reduce the risk of adding strain to your financial plan or your family.

Aligning Income, Benefits and Decisions

As retirement approaches, coordinating and timing key decisions becomes increasingly important. When to claim Social Security, how to structure withdrawals and how to manage taxable income all play a role in your long-term plan. As these pieces come together, this stage is less about building from scratch and more about refining and stress testing what you’ve already built. That might mean adjusting your withdrawal strategy, revisiting how your accounts are allocated or coordinating the timing of Social Security with other income sources. Small changes like these – made with a clear view of how one decision connects to the next – can help manage taxes, support steady income and extend the life of your assets.

The years leading up to retirement often require greater clarity. By focusing on what matters most – your health, your savings and how you plan to use them – you can move into the next stage of life with greater confidence in what lies ahead. Your Baird Financial Advisor can help you prioritize these decisions and align them with your goals.