The red zone. Decisions matter most here.
The 5-10 years before retirement are where good plans get derailed by bad sequencing. A market crash now hurts more than the same crash at 35. The right moves protect what you've built without missing the final compounding stretch.
Your priorities, in order
Use catch-up contributions aggressively
After 50: extra $7,500/yr to 401(k) and $1,000/yr to IRA. After 60-63: super catch-up of $11,250/yr to 401(k). These extra slots compress 5-10 years of catch-up into your highest-earning years.
Build a 2-3 year cash bucket
In retirement, you don't want to sell stocks during a crash to fund living expenses. Hold 2-3 years of expenses in HYSA / short-term bonds before retiring. This is your sequence-of-returns insurance.
Shift bond allocation up — but not too far
A "bond tent": ramp up from 20-30% bonds at 50 to 40-50% at retirement, then ramp back down to 30-35% over the first decade. Going to 60%+ bonds at retirement undershoots — your portfolio still needs to grow for 25-40 more years.
Plan healthcare before Medicare (65)
If retiring before 65, ACA marketplace plans are the most common path. Manage MAGI carefully — lower MAGI = more subsidies. HSAs (if you have one) are a tax-perfect bridge: tax-deductible contributions, tax-free growth, tax-free medical withdrawals.
Decide Social Security timing carefully
Claiming at 62 vs 70 = 76% larger monthly benefit. For most healthy people, delaying to 67-70 is mathematically optimal. Exceptions: poor health, no other retirement income, spousal coordination strategies. Don't default to 62.
Calculators built for this stage
Recommended reading
Frequently asked questions
How much should I have saved by 60?
+
Should I pay off the mortgage before retiring?
+
When should I claim Social Security?
+
Plug in your real situation. The calculators are free, no sign-up.
Open calculator →