“Sixty percent of baby boomers today are more worried about running out of money than dying! No one wants to estimate their life expectancy, but it’s crucial for proper planning,” says Shane Eighme, a financial advisor at Shane & Shane Financial.

Online calculators can help estimate longevity, but many factors—age, gender, health, and family history—affect it. Proper planning can mitigate some longevity risk to your portfolio.

Maybe you had a rough idea of your earnings and spending over the years, but that won’t cut it anymore. Shane Eighme advises, “Budget your expenses. Retirees are on a fixed income. Write down every monthly expense to track your spending. Consider working in retirement—the longer you work, the less you’ll need to dip into your nest egg. Even part-time work in your 60s can significantly impact your savings and spending.”

You might think, “I’ll start tomorrow,” but that could be too late. According to Shane Eighme, “A recent study shows one in three Americans has nothing saved for retirement. Workers either don’t want to reduce their take-home pay or aren’t prioritizing retirement savings.”

This is a costly mistake. Chantel Bonneau, a wealth advisor at Northwestern Mutual, says, “Every dollar saved in your 20s or 30s in a tax-deferred account is extremely valuable. The money grows without taxation, so the longer you have to accumulate, the better.” With some creativity, you can find ways to save money.

Don’t wait until retirement is just a decade away to start saving seriously. What if you get ill or laid off and can’t find another job? “Forty-six percent of retirees left the workforce earlier than planned, so it is important to start saving sooner,” says Garrett Oakley, a certified financial planner and CPA at Betterment.

“Over 80 percent of pre-retirees haven’t attempted to estimate their healthcare costs in retirement. While Medicare covers many expenses, it’s not comprehensive,” explains Eighme.

Consider contributing to a Health Savings Account if eligible. An HSA is an excellent tool for retirement savings because you can withdraw funds tax-free for qualified medical expenses. After age 65, withdrawals for non-medical purposes are taxed without a penalty. HSAs also do not require minimum distributions after age 70, allowing your savings to grow until needed.

To reduce medical expenses, consider switching from brand-name to generic prescriptions and comparing costs before paying for treatments or medications. “Apply for federal subsidies to lower co-pays and other out-of-pocket costs. Supplement Medicare with a medigap policy, prescription drug plan, or Medicare Advantage plan,” advises Joshua Zimmelman, president of Westwood Tax & Consulting.

“With life expectancy rising, everyone should include growth in their portfolio. Don’t be too cautious in retirement—your savings may need to support you for decades,” advises Mark Carruthers, a certified financial planner.

Similarly, avoid putting all your investments into one asset. Diversify within and outside the stock market. Just as you wouldn’t bet all your retirement savings on a long shot in a horse race, diversification spreads risk and enhances potential returns. Consult a financial advisor to determine the best assets to achieve your goals and how to allocate your investments effectively.

“It’s about playing the averages. Avoid trying to outsmart the market—it’s a marathon, not a sprint. You won’t profit every year, so trust in long-term averages,” advises Carruthers. Consider dollar-cost averaging: consistently investing money over time rather than reacting to daily market swings. This approach typically yields better long-term results.

“Many people lack a last will and testament, leaving state laws to dictate their estates. This can lead to complications, especially in blended families, where assets could end up jointly owned by a current spouse and children from previous marriages—a potentially problematic mix,” warns John Cleveland Hill, an estate lawyer at Hill & Watchko.

Creating a DIY will is not recommended. Check with your employer to see if you have access to legal services through your benefits.

“More than half of baby boomers confess to knowing very little about Social Security benefits. This may explain why many start claiming benefits at age 62, the earliest possible age. However, early claiming isn’t ideal for everyone. If you start Social Security before full retirement age (66 or 67 depending on your birth year), your benefits are permanently reduced,” cautions Eighme.

Social Security is complex and requires a strategic approach. It’s crucial to educate yourself on the optimal age to begin benefits. This decision impacts not only you but also your spouse—surviving spouses may receive a higher benefit if their partner’s was greater. Ideally, work with your financial advisor to develop a Social Security plan well before reaching age 62.

Creating a financial plan isn’t a one-time task. It’s not like drawing a map once and following it forever. Your financial plan should evolve with your life changes.

According to Criscuolo, “It’s typically wise to review your cash-flow forecasts, asset allocation, and other financial documents every two to three years, or more often if major life events occur, like a divorce or career shift.”

Carruthers advises, “Like driving a car, everyone needs a destination. Determine your retirement goals and assess the level of risk you’re willing to take to achieve them.”

Diversifying your investments is crucial to balancing risk and reward in your retirement portfolio. Different asset classes, such as stocks, bonds, and real estate, perform differently over time. By spreading your investments across various assets, you can protect yourself against significant losses in any one area. Regularly reviewing and adjusting your asset allocation ensures it aligns with your risk tolerance and retirement goals.

Understanding the tax implications of your retirement accounts is essential for effective planning. Different accounts, like traditional IRAs and Roth IRAs, have distinct tax treatments. Withdrawals from traditional IRAs are taxed as income, while Roth IRAs offer tax-free withdrawals. Consulting with a tax advisor can help you develop strategies to minimize your tax burden in retirement.

Inflation can erode the purchasing power of your savings over time, making it a critical factor in retirement planning. To combat this, consider investments that historically outpace inflation, such as stocks and real estate. Regularly reassess your financial plan to ensure it accounts for inflation. This proactive approach helps maintain your standard of living throughout retirement.

Long-term care can be a significant expense in retirement, so it’s important to plan for it. Long-term care insurance is one option to cover costs associated with extended medical care, such as nursing homes or in-home care. Evaluate the cost and benefits of such insurance based on your health, family history, and financial situation. This foresight can prevent long-term care expenses from depleting your retirement savings.

Once you reach a certain age, typically 72, you must start taking required minimum distributions from your retirement accounts. Failure to take RMDs can result in hefty penalties. The amount you must withdraw each year is calculated based on your account balance and life expectancy. Properly planning for RMDs can help you manage your retirement income and tax liability effectively.

Generating passive income can provide financial stability during retirement. Consider investments like rental properties, dividend-paying stocks, or bonds that offer regular income without active management. Passive income can supplement your savings and Social Security benefits, giving you more financial flexibility. Research and select reliable income streams that fit your risk tolerance and investment preferences.

As you approach retirement, reassess your life insurance needs to ensure they align with your financial goals. Life insurance can provide financial support to your dependents, cover estate taxes, or leave a legacy. The need for life insurance may decrease as your savings grow and your children become financially independent. Consult with a financial advisor to determine the appropriate coverage for your situation.

Transitioning gradually into retirement by working part-time can be beneficial both financially and mentally. Phased retirement allows you to continue earning income, delaying the need to draw from your retirement savings. It also provides an opportunity to adjust to the lifestyle changes that come with retirement. Discuss phased retirement options with your employer to find a schedule that suits your needs.

Maintaining a healthy lifestyle can reduce medical expenses and enhance your quality of life in retirement. Regular exercise, a balanced diet, and routine medical check-ups can prevent chronic diseases and improve overall well-being. Staying active also helps you remain independent and enjoy a more fulfilling retirement. Incorporate health and wellness activities into your daily routine for long-term benefits.

Continuing to learn and explore new interests can keep your mind sharp and improve your quality of life. Lifelong learning opportunities, such as classes, workshops, or hobbies, provide mental stimulation and social interaction. They can also open new avenues for personal growth and satisfaction. Embrace the curiosity and passion for learning to make your retirement years enriching and enjoyable.

Maintaining and building relationships is vital for your emotional and mental well-being in retirement. Stay connected with family, friends, and community groups to avoid loneliness and social isolation. Participate in social activities, volunteer, or join clubs that interest you. Strong social connections can provide support, joy, and a sense of belonging during your retirement years.

Your retirement decisions can significantly impact your spouse’s financial well-being. Educate yourself on spousal benefits available through Social Security and retirement accounts. Strategic planning can maximize the benefits both you and your spouse receive. Collaborate with your financial advisor to ensure your retirement plan considers both partners’ needs and goals.

Managing debt is crucial as you approach retirement to ensure financial stability. Pay off high-interest debt, such as credit cards, before retiring to reduce financial stress. Avoid accumulating new debt, which can strain your fixed income during retirement. Adopting a conservative approach to borrowing can help you preserve your retirement savings and maintain financial security.

Downsizing your home can be a practical way to reduce expenses and free up equity for retirement. Moving to a smaller home or a more affordable area can lower maintenance, utility, and property tax costs. It can also simplify your lifestyle and provide additional funds for travel or other retirement activities. Evaluate your housing needs and preferences to determine if downsizing is right for you.

Changes in retirement laws and regulations can impact your financial planning. Stay informed about updates to Social Security, Medicare, and tax laws to ensure your retirement strategy remains compliant and optimized. Regularly review trusted sources of information or consult with a financial advisor. Being proactive about legislative changes helps you make informed decisions and avoid potential pitfalls.

If philanthropy is important to you, incorporate charitable giving into your retirement plan. Determine how much you want to give and to which causes, and consider setting up a donor-advised fund or charitable trust. Charitable giving can provide tax benefits and create a lasting legacy. Consult with a financial advisor or estate planner to develop a giving strategy that aligns with your values and financial goals.

Cognitive decline is a reality many face as they age, so it’s important to plan for it. Establish a power of attorney and healthcare proxy to ensure your financial and medical decisions are managed according to your wishes. Simplify your financial affairs to make them easier to manage and less susceptible to errors. Discuss your plans with trusted family members or advisors to ensure your preferences are respected.