Retirees need to review their year-end financial statements.

As the year comes to an end, retirees should take some time to review their financial situation, make financial adjustments, and ensure financial security for the coming year. After all, a well-planned year-end financial checklist can help retirees assess their current situation, take advantage of potential tax-saving opportunities, and set goals for the future.

First and foremost, evaluate your sources of income to ensure they meet your needs. These sources may include social security benefits, pensions, funds withdrawn from retirement accounts like 401(k), and investment income.

You should consider the following questions in particular:

Do you need to make any adjustments? If so, you could consider reallocating investments, looking for part-time income, or adjusting withdrawal rates, among other strategies.

Are you 70 and a half or older? If so, you may need to comply with Required Minimum Distribution (RMD) rules. The IRS requires a certain amount to be withdrawn annually from your retirement accounts. While postponing may be tempting, adhering to these deadlines is crucial to avoid penalties.

Key RMD deadlines:
If you want to ensure compliance, consulting a tax professional or financial advisor for advice is advisable.

At year-end, you should review your financial situation and plan for the next tax year. As a retiree, you have several options to reduce your tax burden.

However, consulting a tax professional is crucial to optimize these strategies for your unique circumstances.

Retirement often comes with unforeseen expenses, such as home improvements or medical costs. Therefore, to prepare financially, you should:

Keeping expenses in line with income will ensure you maintain financial stability.

Estate planning is crucial to protect your assets, leave a legacy, and ensure your wishes are fulfilled. Therefore, before the new year, you should review the following:

It’s a season of giving, and supporting charities you trust is the best way to spread joy. So, if you want to maximize your charitable impact and tax benefits, consider the following options:

Please note, for your charitable gifts or QCD to count towards the 2024 tax year, donations must be completed by December 31, 2024.

As you age, health-related costs typically increase. Therefore, reviewing your insurance coverage annually is essential:

To ensure your investment portfolio aligns with your risk tolerance and income needs, you must review it regularly. At the very least, consider:

It’s highly recommended to work with a financial advisor to keep your investment strategy aligned with your goals.

As we all know, inflation can erode purchasing power. Retirees need to plan for rising costs in the following ways:

The new year is a great time to set new goals. Consider what financial goals you want to achieve in the coming year. Here are some examples:

Setting specific, measurable, and achievable goals will make the next year more productive.

Retirement laws and benefit plans may change, affecting your finances. Several examples include:

Year-end is also a good time to reach out to your financial advisor, tax preparer, or estate planning attorney. These professionals can help you:

The year-end financial checklist is not just a to-do list; it ensures your retirement years are financially secure and stress-free. Actively reviewing your income, taxes, expenses, investments, and estate plan will bring you confidence and clarity as you enter the new year.