The 5 years before retirement are critical for Americans. Here’s why, plus what you can do to prepare

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While it’s always a good idea to start planning for retirement as early in your career as possible, the five years before retirement are often considered the most critical. By getting a handle on where you stand today, you’ll have a better understanding of what that means for your financial wellbeing in retirement.

But get it wrong, and it could tarnish your golden years.

In addition to developing a budget for retirement, it’s a good time to revisit your retirement plans and goals — after all, things change. When you were younger, maybe you dreamt of traveling the world, but now you’re more interested in living abroad. Or, you might want to move to another city or state to be closer to your children or grandchildren.

Here’s how you can plan ahead in the lead up to your retirement.

If you’re not on track with your finances, there’s still time to adjust your investments.

That might mean bumping up your savings rate (and cutting back on some of your current expenses). It might also mean looking for supplemental income, such as working overtime or finding a side hustle.

This is also a good time to sit down with your financial adviser to make sure your asset allocation suits your retirement timeline. For example, you might want to consider making adjustments that will lower your risk.

If you’re searching for financial advice, Advisor.com connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances, and Adivsor.com matches you with a short list of certified experts to choose from.

You can then set up an introductory meeting with no obligation to hire.

Certain tax planning strategies could also help. A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.

Once you revisit your plans and goals, you can figure out if you’re retirement-ready. By developing a budget, you can figure out if you’re on track with your retirement savings.

Knowing exactly where your money is going can help you make better decisions — and keep more money in your wallet. If managing a budget feels overwhelming to you, apps like Rocket Money can simplify the process.

Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten and unwanted subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.

For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.

You’ll also need to figure out how much you’ll bring in during retirement, including your Social Security benefit, pension, retirement savings and any other sources of income.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

One potential extra source of retirement income is commercial real estate, which has proven to offer portfolio diversification, liquidity and passive income.

For years, direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.

First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

You might also consider investing in residential real estate as a way to supplement your retirement income. An increased demand for affordable single-family rentals has created an opportunity for those looking to for income-generating investments.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

One of your biggest expenses in retirement could be healthcare. If you retire before 65 (when Medicare, the federal health insurance program, becomes available), then you’ll need to make sure you’re covered by private insurance, employer benefits or a spouse’s plan.

Those expenses won’t disappear when you become eligible for Medicare. According to Fidelity Investment’s 2025 Retiree Health Care Cost Estimate, a 65-year-old could spend around $172,500 in healthcare and medical expenses through their retirement (1).

Do your research ahead of time: Learn how the program works, what it covers, what it doesn’t cover and when you need to sign up. For example, if you miss the enrollment period, you’ll have to pay a penalty.

You might also want to consider long-term care insurance, that offers coverage for the costs of in-home assistance, nursing homes or assisted living facilities.

Without proper planning, paying for long-term care could deplete your retirement fund. In many cases, the burden of paying for care often falls on family members – potentially straining their finances.

When considering long-term care insurance, GoldenCare offers different options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living, and traditional long-term care insurance.

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Fidelity Investments (1)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.