Turning 70 is a major financial milestone, and what you do with your money before then can shape the rest of your life. The years leading up to 70 are often your last real window to reduce risk, lower taxes, simplify your finances, and lock in long-term security. Small decisions made now can prevent costly mistakes later, especially when income becomes more fixed and flexibility narrows. Whether you’re already retired or getting close, this list highlights smart money moves to make while you still have time to adjust, so you can move into your 70s with confidence, clarity, and control.
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Do a Full Retirement Income Stress Test
A retirement income stress test helps you understand how your money holds up under real-world conditions. It examines what happens if markets drop, inflation is high, or you live longer than expected. Before turning 70, you still have time to adjust spending, investments, or income sources if gaps appear. Stress testing can reveal blind spots that simple projections miss. Knowing whether your plan survives worst-case scenarios brings peace of mind and gives you control, rather than hoping everything works out after it’s too late to course-correct.
Pay Off or Significantly Reduce High-Interest Debt
High-interest debt becomes more dangerous as you age because it limits flexibility and drains cash flow. Before 70, aim to eliminate or dramatically reduce balances like credit cards or personal loans. Every dollar not spent on interest is a dollar you can use for healthcare, travel, or peace of mind. Debt-free living also reduces stress and makes retirement income planning far easier. While low-interest mortgage debt may be manageable, toxic debt should be tackled aggressively so it doesn’t follow you into a fixed-income phase of life.
See if it makes sense to consolidate your debts into a personal loan.
Create a Clear Social Security Claiming Strategy
Social Security decisions are permanent and can affect your income for decades. Before turning 70, you should understand exactly when and how you’ll claim. Delaying increases your monthly benefit, but it’s not right for everyone. A clear strategy accounts for health, spousal benefits, taxes, and other income sources. Taking time to plan now prevents costly mistakes later. This decision alone can mean tens of thousands of dollars over your lifetime, making it one of the most important money moves you’ll ever make.
Review and Rebalance Your Investment Portfolio
As you approach your 70s, your investment mix should reflect your current goals. Reviewing and rebalancing ensures you’re not taking unnecessary risks or missing growth opportunities. Over time, portfolios drift as markets move, often becoming riskier than intended. A pre-70 check-in helps align your investments with your income needs, time horizon, and risk tolerance. This doesn’t mean abandoning growth, but it does mean being intentional. A balanced portfolio helps protect what you’ve built while still supporting long-term needs.
Simplify and Consolidate Old Retirement Accounts
Multiple old 401(k)s and IRAs can make managing your money harder than it needs to be. Consolidating accounts before 70 reduces confusion, makes required minimum distributions easier to manage, and lowers the chance of missed paperwork or mistakes. It also gives you a clearer picture of your total financial health. Fewer accounts mean fewer passwords, statements, and beneficiary forms to track. Simplification is a gift to both yourself and anyone who may need to help manage your finances later in life.
Build or Top Off an Emergency Fund for Retirement
An emergency fund doesn’t stop being important when you retire. Unexpected expenses like medical bills, home repairs, or helping family members can derail your budget if you’re unprepared. Before 70, aim to have several months of expenses in a safe, easily accessible account. This prevents you from selling investments during market downturns or relying on credit. A retirement-focused emergency fund provides stability and confidence, allowing the rest of your financial plan to work as intended even when life throws surprises your way.
Review Beneficiary Designations on All Accounts
Beneficiary designations override wills, yet they’re often forgotten. Before turning 70, review every retirement account, bank account, and insurance policy to ensure beneficiaries are correct and up to date. Life changes, such as marriage, divorce, deaths, or new grandchildren, can make old designations outdated. A quick review can prevent legal battles, delays, and unintended outcomes. This simple step ensures your money goes exactly where you want it to go and spares your loved ones unnecessary stress during an already difficult time.
Update or Create a Will and Estate Plan
An up-to-date estate plan ensures your wishes are honored and your loved ones are protected. Before 70, review or create a will, power of attorney, healthcare directive, and any trusts you may need. These documents aren’t just for the wealthy. Estate planning also reduces taxes, court involvement, and family conflict. Handling this now means fewer decisions later when stress or health issues could make planning harder. It’s one of the most thoughtful financial gifts you can give your family.
Set Up Healthcare Cost Projections
Healthcare is often the largest unknown expense in retirement. Before turning 70, take time to estimate premiums, out-of-pocket costs, prescriptions, and potential long-term care needs. Medicare doesn’t cover everything, and costs tend to rise faster than inflation. Planning ahead allows you to set aside funds or adjust spending expectations. Understanding future healthcare expenses helps prevent unpleasant surprises and ensures medical costs don’t derail your lifestyle. A realistic projection gives you confidence that you can handle both routine care and unexpected health challenges.
Here's a list of what Medicare does and doesn't cover.
Evaluate Long-Term Care Insurance or Alternatives
Long-term care can quickly drain savings if you’re unprepared. Before 70, evaluate whether long-term care insurance, hybrid policies, self-funding, or other alternatives make sense for you. Premiums rise with age, and health issues can limit options, so earlier planning provides more flexibility. Even if you decide not to buy insurance, understanding the costs and having a plan is essential. Addressing this now protects your assets and reduces the likelihood that future care needs will place a financial burden on your family.
Plan for Required Minimum Distributions (RMDs)
Required minimum distributions can create unexpected tax bills if you’re not prepared. Before turning 70, understand when RMDs begin and how they’ll affect your income and taxes. Planning ahead allows you to manage withdrawals strategically, possibly smoothing income or reducing future tax brackets. Ignoring RMDs can lead to penalties and unnecessary stress. A proactive plan ensures you meet requirements efficiently while preserving as much of your savings as possible. This step turns a confusing rule into a manageable part of your retirement strategy.
Downsize or Right-Size Your Housing Situation
Housing often represents both a major expense and a large portion of net worth. Before 70, evaluate whether your current home still fits your lifestyle, budget, and mobility needs. Downsizing or relocating can free up equity, lower maintenance costs, and simplify daily life. Even if you don’t move, making the decision intentionally is important. Housing choices affect cash flow, taxes, and quality of life. Addressing this before it becomes urgent gives you more options and reduces the risk of forced decisions later.
Decide How Much to Help Adult Children Financially
Many people support adult children well into retirement, sometimes at the expense of their own security. Before 70, define clear boundaries around financial help. Decide what you can afford, how often you’ll help, and when to say no. A plan prevents guilt-driven decisions that undermine your future. Helping family can be meaningful, but it shouldn’t jeopardize your stability. Setting expectations now protects relationships and ensures generosity comes from a place of strength rather than sacrifice.
Review All Insurance Policies for Gaps or Over-Coverage
Insurance needs change over time, and outdated policies can waste money or leave you exposed. Before turning 70, review health, life, auto, homeowners, umbrella, and long-term care coverage. You may no longer need certain policies, while others may require updates. Right-sizing coverage saves money and ensures protection where it matters most. This review also prevents unpleasant surprises during claims. Insurance should support your retirement, not drain it, so a periodic checkup is essential.
Create a Charitable Giving Plan
If giving is important to you, a structured charitable plan can maximize impact and tax efficiency. Before 70, consider donor-advised funds, qualified charitable distributions, or planned gifts. These tools allow you to support causes you care about while potentially reducing taxes. A clear plan also ensures that giving aligns with your overall financial goals. Thoughtful charitable planning turns generosity into a lasting legacy rather than an afterthought. It allows you to give with intention, confidence, and clarity.
Make a List of Accounts and Passwords for a Trusted Person
Financial organization becomes increasingly important with age. Before 70, create a secure list of accounts, institutions, and access instructions for a trusted person. Without this information, loved ones may struggle to pay bills or manage assets during a crisis. Clear documentation saves time, stress, and confusion. It’s a practical step that ensures continuity and protects your financial life if you’re ever unable to manage things yourself.
Build a Realistic Retirement Spending Plan
A retirement spending plan is a roadmap for your lifestyle. Before 70, outline expected expenses, including essentials, fun spending, travel, and irregular costs. Being realistic prevents overspending or unnecessary deprivation. This plan helps align your income sources with your priorities. Knowing what you can safely spend brings confidence and reduces anxiety. A thoughtful spending plan ensures your money supports the life you want, rather than constantly wondering if you’re spending too much or too little.
Decide How You’ll Generate Extra Income If Needed
Even with careful planning, extra income can provide flexibility and peace of mind. Before 70, consider whether part-time work, consulting, hobbies, or passive income could supplement your retirement. Knowing your options ahead of time reduces stress if markets dip or expenses rise. Income flexibility can prevent premature withdrawals and extend the life of your savings while keeping you engaged and financially confident.
Stress-Test Your Plan Against Inflation and Market Downturns
Inflation and market volatility can erode your retirement security. Before 70, test how your plan performs if prices rise or markets decline for extended periods. This exercise reveals whether adjustments are needed in spending, investments, or income sources. Stress-testing helps you prepare emotionally and financially for inevitable fluctuations. Instead of reacting in panic later, you’ll know what steps to take. Preparation transforms uncertainty into manageable risk.
Revisit Your Risk Tolerance
Risk tolerance often changes as retirement approaches, but many portfolios don’t reflect that shift. Before turning 70, reassess how much volatility you can comfortably handle. Emotional reactions to losses can cause costly mistakes if risk is misaligned. Adjusting your portfolio now helps ensure you stay invested during downturns rather than reacting out of fear. The goal is to own the right kind of risk for your stage of life and financial goals.
Set Aside Money for Legacy Goals or Gifts
If leaving a legacy matters to you, plan for it intentionally. Before 70, decide how much you want to leave behind and in what form, such as cash gifts, education funding, charitable donations, or inheritance. Setting aside funds ensures legacy goals don’t conflict with your own financial security. Clear planning also reduces confusion for heirs. This step transforms vague intentions into meaningful impact and ensures your values live on through your money.
Meet With a Financial Professional for a Second Opinion
Even confident planners benefit from a fresh perspective. Before 70, meeting with a financial professional can uncover blind spots, tax strategies, or risks you may have missed. A second opinion could validate or improve your plan. This review can provide reassurance or actionable adjustments while there’s still time to act. Think of it as a financial checkup that ensures everything you’ve worked for is positioned to support you for decades to come.
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