Your sixties are the decade when retirement planning stops being theoretical. The choices you make between 60 and 70, about work, pensions, tax and healthcare, are unusually powerful, and unusually hard to reverse. Social Security claiming ages lock in for life, tax windows open and close, and the estate documents you sign now will speak for you later. The good news is that a handful of deliberate moves in this decade can add tens of thousands of pounds or dollars to your security. Here are five that financial planners consistently put at the top of the list, and that we return to often in our business and finance coverage.
1. Build a deliberate retirement income plan
Retirement income rarely assembles itself. Start by listing every guaranteed source: state pension, workplace pensions, annuities and any rental or part-time income. Then compare that total with a realistic budget, not the optimistic one. The gap is what your savings must fund, and knowing its size changes decisions. Many people in their sixties benefit from a phased approach, drawing first from taxable accounts, then tax-deferred savings, and leaving tax-free pots to grow longest. The Social Security Administration publishes the claiming trade-offs clearly: benefits claimed early are permanently reduced, while delaying past full retirement age increases them by roughly eight per cent a year up to age 70. There is no universal right answer, but there should always be a reasoned one.
2. Use the low-income tax window
The years between stopping work and reaching the age when pension withdrawals and required distributions begin are often the lowest-income years of your adult life. That creates a valuable window. Moving money gradually from tax-deferred accounts into tax-free ones, sometimes called a conversion strategy, lets you pay tax at today’s lower rate instead of a higher one later, and reduces the forced income that can push you into bigger tax bills in your seventies. The same window suits realising capital gains at favourable rates and tidying up accounts. Because thresholds differ by country and change with budgets, check the current rules with a qualified adviser or through official guidance such as IRS retirement plan resources before acting.
3. Plan for healthcare costs honestly
Healthcare is the expense retirees most consistently underestimate. Even in countries with strong public systems, dental care, hearing, vision, home help and long-term care can fall largely on the individual. In the United States, Medicare does not cover most long-term care, and out-of-pocket costs surprise new enrollees every year. Practical steps include pricing supplemental cover before you retire, building a dedicated healthcare reserve inside your savings, and, where available, using health savings accounts in your final working years, since contributions, growth and medical withdrawals can all be tax-free. Just as important is the unglamorous paperwork: know what your cover excludes before you need it, not after.
4. Get your estate documents in order
Estate planning is not about wealth; it is about clarity. In your sixties you should have an up-to-date will, powers of attorney for both finances and health, and beneficiary designations on pensions and insurance that match your current wishes rather than your circumstances of twenty years ago. Review who would manage your affairs after a sudden illness, and tell them where documents live. For blended families, business owners and anyone supporting a vulnerable relative, a conversation with an estate specialist is money well spent. These steps spare your family court delays and disputes at exactly the moment they are least able to handle them.
5. Rebalance risk, and keep a cash buffer
The final move is about sleeping well. A market fall at 62 hurts more than the same fall at 42, because there is less time and less salary to repair it. Review whether your investments still match your horizon: money needed in the next two or three years generally should not ride the stock market. Many planners suggest holding one to two years of spending in cash or near-cash, replenished in good years, so a downturn never forces you to sell investments at the worst moment. At the same time, do not abandon growth entirely; retirement can last thirty years, and inflation is a risk too.
None of these moves requires perfect timing or a large portfolio. They require attention, in the one decade when attention pays best. Start with the income plan, work through the list over a few months, and revisit it yearly. Readers can follow more practical guidance on our homepage as rules and rates change.
