Getting
Retirement Ready
46-60
For many people, this decade is when the big expenses of earlier years start easing — a mortgage nears payoff, children become more financially independent — right around the same time retirement stops being a distant idea and starts being an actual date. That combination makes this the most important decade for closing any gaps.
If your monthly obligations are shrinking even slightly, the instinct is often to enjoy the extra breathing room. Before you do, consider redirecting that freed-up cash flow straight into retirement savings instead of letting it quietly absorb into everyday spending.
This is also the decade to take stock honestly: are you on track for the retirement you actually want, or the one you’ll end up with by default? There’s still time to close a gap here that will be much harder to close in your sixties.
RULE OF THUMB | Whenever an expense disappears — a paid-off car, a paid-off mortgage, a child finishing school — redirect that amount into retirement savings before your lifestyle expands to absorb it. |
Earlier in life, a market downturn is an inconvenience you have decades to recover from. A few years out from retirement, that same downturn can mean retiring later than planned or with meaningfully less. This doesn’t mean abandoning growth investments altogether — it means starting to shift the balance.
The mistake to avoid is doing this all at once, in a panic, after a bad year. The shift works best as a gradual adjustment over several years, not a single switch flipped right before you need the money.
RULE OF THUMB | Move toward a more conservative mix gradually on a multi-year glide path rather than all at once. Consider having this conversation with a licensed advisor rather than timing it yourself based on headlines. |
A will, up-to-date beneficiary designations on every account, and a power of attorney are not documents reserved for the wealthy — they are what determines whether your wishes are followed or whether people you love are left guessing, at the worst possible time, what you would have wanted.
Beneficiary designations are especially easy to overlook. They often override what a will says, and life changes — marriage, divorce, a new child — can leave old designations pointing to the wrong person for years without anyone noticing.
RULE OF THUMB | Review beneficiary designations on every account every few years, and after any major life change — don’t assume a form filled out a decade ago still reflects your wishes. |
Up to this point, “save for retirement” may have been enough of a plan. Now it’s worth getting specific: how much income will you actually need each year, and does your current trajectory get you there?
This isn’t about a single magic number — it’s about knowing roughly where you stand so you still have years to adjust if the answer is “not quite yet.”
RULE OF THUMB | As a starting point, plan to replace roughly 70-80% of your pre-retirement income each year in retirement, then adjust based on your own expected expenses. |
The takeaway
This decade rewards honesty over optimism. Redirect what you free up rather than spending it, start de-risking before you’re forced to, make sure your documents reflect your actual wishes, and get a real number instead of a vague hope. Whatever gaps remain here are still closeable — that stops being true once retirement arrives.
