Finish 2026 With Confidence: A Year-End Checklist for Retirees

Paul Gougé is a lead consultant in Planning Excellence at Northwestern Mutual.

As 2026 comes to a close, taking stock of your retirement finances is a great way to move into next year with stability and peace of mind. From checking on required minimum distributions (RMDs) and investment allocations to evaluating tax strategies, charitable giving, and estate plans, a year-end review can help ensure your money remains aligned with your goals.

Meeting with your financial advisor can make it easier to identify adjustments to improve your financial picture and give you greater confidence and peace of mind for the year ahead. One of the most common mistakes retirees make is assuming their financial plan can remain on autopilot after they stop working. Here’s a year-end financial checklist for retirees to help you stay on track.

Take any RMDs

RMDs are the minimum amount you must withdraw annually from certain tax-deferred retirement accounts, including traditional individual retirement accounts (IRAs) and many employer-sponsored retirement plans, like a traditional 401(k) and 403(b). You have until April 1 in the year after you turn 73 to make your first distribution. Every year after, withdrawals must be made by December 31. Failure to meet these deadlines can mean costly taxes and penalties.

If you’re wondering about your Roth IRA, these do not require RMDs during the original owner’s lifetime. However, inherited Roth IRAs generally remain subject to distribution requirements, making it important to review inherited retirement accounts as part of your year-end planning.

Review estate documents and asset titling

Review your will 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.

In addition to reviewing wills and trusts, consider whether your powers of attorney and healthcare directives still reflect your wishes. Keeping estate planning documents current can help reduce complications for loved ones and may make asset transfers more efficient.

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 can be especially important when market gains or losses have changed your exposure to stocks, bonds, mutual funds, exchange-traded funds (ETFs), or other investments.

Taking time to review your asset allocation can help ensure your portfolio still matches your retirement income needs and risk tolerance.

Recognize capital gains or losses

While selling investments at a loss can be disappointing, it can also reduce your taxable income for the year. Tax-loss harvesting involves selling investments that have declined in value to offset taxable capital gains elsewhere in your portfolio. In some circumstances, unused losses may also offset a portion of ordinary income.

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

Discuss charitable giving strategies with your advisor or tax attorney for income tax deductions and provide immediate and future benefits to charity over time.

If you’re 70½ or older, consider qualified charitable distributions—up to $111,000 per year from a qualified retirement account. These distributions are excluded from income, and if you are 73 or older, they can satisfy RMD requirements. Under the One Big Beautiful Bill Act (OBBBA) taxpayers who use the standard deduction can also deduct certain charitable contributions: up to $1,000 for single filers or $2,000 for married couples filing jointly.

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 increased to $15 million for individuals and $30 million for married couples filing jointly 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 2026 spending and then build your plan for 2027. Tracking your spending in a monthly budget 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.

For some retirees, healthcare remains one of the largest retirement expenses, so make sure you account for healthcare costs, including Medicare premiums, supplemental insurance, and prescription drug expenses.

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 help you evaluate retirement income sources, investment strategies, tax planning opportunities, estate-planning considerations, and spending needs. They can also make sure your financial planning continues to support your long-term goals, so you can move into next year with stability and peace of mind.

Frequently Asked Questions

What is the number one mistake retirees make?

One of the most common mistakes retirees make is assuming their financial plan can remain on autopilot after they stop working. Retirement often brings changing spending patterns, healthcare costs, tax considerations, and income needs. Reviewing your plan regularly can help ensure your investments, withdrawal strategy, and estate plan continue to support your goals. A yearly financial review can also uncover new opportunities and potential risks before they become larger issues.

What is the biggest expense for most retirees?

While every retiree’s situation is different, housing and healthcare are often among the largest retirement expenses. Medical costs can increase over time—even with Medicare coverage—and many retirees underestimate how much they may spend on healthcare throughout retirement. That’s why it’s important to account for healthcare expenses, insurance costs, and other large recurring expenses when creating your retirement spending plan.

How much cash should a retiree keep on hand?

There’s no single amount that’s right for everyone. The appropriate cash reserve depends on your spending needs, retirement income sources, risk tolerance, and overall financial situation. Many retirees keep cash available for routine expenses, emergencies, and short-term needs while investing other assets for long-term growth. Working with your financial advisor can help you find the right balance between liquidity and investment opportunities.

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.