A Year-End Financial Checklist for Retirees

Peter Richardson is vice president of Planning Excellence at Northwestern Mutual.

We hope you’re enjoying retirement so much that you’ve barely noticed the end of the year creeping up again. Whether you’re already preparing for the holidays or just taking time to have some fun or adventures, as we approach the end of the year, it’s important to take a few moments to check in on your finances.

To keep things running smoothly, it’s a good idea to evaluate your spending since you rang in the new year last January and meet with your financial advisor who can help you identify new opportunities as you plan for the year ahead. As you review your expenses, there are a few items you’ll want to make sure you take care of before 2026 arrives, so you can finish this year strong. Here’s a financial checklist for retirees to help you keep your peace of mind in retirement.

A Year-End Financial Checklist for Retirees

Required minimum distributions (RMDs)

You are required to take RMDs from tax-qualified accounts (like a traditional 401(k), 403(b) and IRA) starting no later than April 1 of the year following the year in which you turn 73. It is important to take these distributions by year-end to avoid costly taxes and penalties.

Keep estate documents and asset titling current

Review your wills and/or revocable living trust to ensure that documents list the appropriate executors, trustees and guardians. Also, make sure your beneficiaries are up to date—especially if you’ve welcomed grandchildren to the family. Remember, an estate plan is a good idea for everyone, regardless of your net worth. If you have recently created a trust, ensure that your assets such as your home and investment accounts are titled properly so that your trusts function as you intended.

Rebalance your portfolio

It’s still important to own stocks, bonds and other assets when you’re retired. The volatility in the markets during the past few years may have caused your exposure to these assets to change in ways that may be at odds with the amount of risk you’re comfortable taking. Rebalancing your portfolio brings your asset allocation back in line with your comfort level. While rebalancing on a regular basis is always a good idea, it can be even more important following big market moves.

Recognize capital gains or losses

While selling investments at a loss can be disappointing, it can also reduce your taxable income for the year in a move called tax-loss harvesting. Depending on your situation, you may also want to sell investments that have appreciated and realize those gains. It’s a good idea to work with a financial planner or tax attorney to think strategically about when it makes the most sense to recognize capital gains or losses.

Review charitable giving

The recently passed legislation commonly referred to as the as the One Big Beautiful Bill Act (OBBBA) will allow taxpayers who use the standard deduction (most taxpayers do this) to also deduct certain charitable contributions: up to $1,000 for single filers or $2,000 for married couples filing jointly. Please note these deductions won’t take effect until 2026.

Discuss charitable gift-giving strategies with your advisor or tax attorney for income tax deductions and to provide immediate and future benefits to charity over time. If you’re 70½ or older, consider charitable distributions from a qualified retirement account—up to $100,000 per year. That distribution is excluded from income, and distributions made when you are 73 or older can satisfy RMD requirements.

Review annual and lifetime giving

You may want to consider giving income-producing assets to children in lower income brackets to reduce the family’s overall tax burden—especially if you have a large estate.

Under the OBBBA, the lifetime estate and gift tax exemption will increase to $15 million for individuals and $30 million for married couples filing jointly beginning in 2026. Starting in 2027, this exemption will adjust annually for inflation.

The law also increases the generation-skipping transfer (GST) tax lifetime exemption. However, transferring wealth directly to grandchildren or the generations that come after them means you will be using your GST exemption alongside your estate and gift tax exemption. (The tax rate on wealth transfers above these exclusions holds steady at 40 percent.)

Update your spending plan

Review your 2025 spending and then build your plan for 2026. Tracking your spending can help you understand where your money is going and whether it's time to cut some spending on things that may not be as important to you. And don’t forget to account for any big-ticket expenses you expect to have in the coming year, such as medical procedures or travel plans.

If you’re unsure about next steps or just want to review your plan, it's always a good idea to ask for a consult. Your Northwestern Mutual financial advisor can look at your entire financial picture and help you keep track of your spending in retirement.

This publication is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax professional for tax advice that is specific to your situation.