5 Retirement Moves to Make in January
If you’re within five to ten years of retirement, January is your opportunity to get ahead instead of playing catch-up. A few simple moves now can reduce stress, improve clarity, and make your retirement timeline feel much more real.
The goal isn’t doing everything perfectly. It’s starting the year with intention so your plan stays on track as the year unfolds.
The 5 Moves That Set the Tone for Your Retirement Plan
| Move | What to Do | Why It Matters |
|---|---|---|
| 1) Know Your Income Gap | Compare guaranteed income to your expected spending. | Shows how much your portfolio needs to generate. |
| 2) Update Social Security Strategy | Run different claiming scenarios based on your situation. | Helps maximize lifetime benefits and protect your spouse. |
| 3) Set Contributions Intentionally | Lock in your 401(k), IRA, and Roth decisions for the year. | Ensures your savings strategy aligns with your tax plan. |
| 4) Review Tax Opportunities | Look for Roth conversions, deductions, and tax adjustments. | Helps reduce surprises and improve after-tax income. |
| 5) Stress-Test Your Retirement Date | Evaluate how your plan holds up under different scenarios. | Builds confidence that your plan works beyond ideal conditions. |
Move 1: Know Your Income Gap
Start by identifying how much income you’ll need in retirement and how much is already covered. Guaranteed income may include Social Security, pensions, or annuities. Then compare that to your expected spending.
The difference is your income gap, and that’s what your portfolio needs to cover. Seeing that number clearly gives you a much stronger foundation for planning.
Move 2: Update Your Social Security Strategy
Social Security decisions are not one-size-fits-all. Your strategy should reflect your health, income needs, and how you want to protect a surviving spouse.
Running a few simple scenarios can make the right decision much clearer and help you plan income timing more effectively.
Move 3: Set Contributions Intentionally
Take time early in the year to set your 401(k) and IRA contributions. If you’re eligible for catch-up contributions, make sure you’re using them.
Also decide whether Roth or pre-tax contributions make more sense based on your current and expected future tax rates.
Move 4: Look for Smart Tax Moves
Before tax season gets busy, review your situation. Look for opportunities such as Roth conversions, tax-loss harvesting, or charitable strategies.
A small amount of planning early in the year can help you avoid surprises and improve long-term tax efficiency.
Move 5: Pressure-Test Your Retirement Date
Don’t just assume your plan will work. Test it. What happens if markets drop early in retirement? What if healthcare costs are higher than expected?
Having a plan for different scenarios can help you stay confident even when conditions change.
Frequently Asked Questions
Why is January important for retirement planning?
January is a natural reset point that allows you to make proactive decisions before the year gets busy.
What is an income gap in retirement?
The income gap is the difference between your expected expenses and your guaranteed income sources.
How should I decide when to claim Social Security?
It depends on your health, income needs, and whether you want to maximize lifetime income or protect a spouse.
Should I prioritize Roth or pre-tax contributions?
That depends on whether your current tax rate is higher or lower than what you expect in retirement.
What tax strategies should I review at the start of the year?
Common strategies include Roth conversions, tax-loss harvesting, and reviewing withholding or estimated payments.
How do I stress-test my retirement plan?
Evaluate how your plan holds up if markets drop, taxes increase, or expenses rise, and adjust accordingly.
Want a Clear Picture of Your Retirement Readiness?
Take our free Retirement Readiness Assessment. It takes less than a minute and gives you a high-level view of your retirement readiness across income, investments, taxes, healthcare, and overall planning.
Master Your Retirement
With These Essential Resources
Get Your Free Retirement Assessment
Our 3-step process is tailored to help you turn your retirement plans into reality.
Download Our Retirement Readiness Checklist
Are your ready for retirement? Our checklist will help you ensure you're on the right track.
.jpg)
As Featured In
