Use This Midyear Checklist to Maintain a Healthy Retirement

Andrew Weber is Senior Director of Planning Philosophy, Research and Guidance at Northwestern Mutual.

It’s amazing how busy retirement can get when your days are filled with travel, new hobbies, and lots more time with your oh-so-cute grandchildren. To ensure you can keep enjoying the lifestyle you’ve worked so hard for, it’s essential to stay on top of your hard-earned savings. Taking a financial inventory might not sound like a fun summer activity, but midyear is the perfect time to see where you stand.

Here’s a quick checklist to review before year-end to help you preserve what you’ve built and continue living the retirement you want. You don't have to tackle it alone, either—your financial advisor can help you work through these items, reviewing your complete financial picture to ensure your personalized plan stays on track.

Revisit your retirement goals

While you were working, it’s likely you thought about what not working would look like. What did you see yourself doing? Where were you living? Does your preretirement vision match the life you are living now—or has it changed? Checking in on your priorities will help inform your financial strategy.

Don’t neglect your physical and mental health

Retirement is meant to be enjoyed, so you need to make sure you protect your health. To maintain your independence, stay active, eat well, and make sure to schedule any routine medical screenings or wellness visits you may have postponed.

Just remember that your mental and emotional well-being are equally important. Staying socially connected and finding purpose through hobbies, volunteering, or family time plays a major role in your overall satisfaction. Ultimately, investing time in what you love is just as important as investing your money wisely.

Review your insurance policies

Retirement is a good time to make sure your insurance coverage still aligns with your needs. Take a fresh look at your health policies, including disability and long-term care plans. Make sure your life insurance beneficiaries are current and updated. If you have a term policy and are concerned about outliving it, consider term conversion. Or, if you’re including your whole life policy in your inheritance planning strategy, make sure the death benefit is adequate for your purposes.

Now is also a good time to look at both your homeowners and auto insurance policies to confirm you have the right level of protection. Major life changes—such as paying off a mortgage, moving, downsizing or changes in your health—may affect the amount or type of coverage that makes sense for you. Review deductibles, premiums and coverage limits, and compare them with your current financial situation. A financial advisor or insurance professional can help identify gaps in coverage and opportunities to reduce unnecessary costs.

Evaluate your spending

At this stage of your life, it’s more important than ever to keep a close eye on your monthly expenses. You’ll want to make sure that you’re sticking to the budget you set so you can make your money last. Talking with a financial advisor can be helpful here, too—they’re up to speed on how your money will be taxed and can guide you in getting the most out of your retirement savings.

It’s important to track not only what you’ve spent and but also what expenses you have coming up. Don’t forget to include big-ticket expenses, including medical procedures or planned travel, as you forecast what you’ll need for the rest of the year. One of the biggest financial mistakes retirees make is assuming their expenses will remain static throughout retirement. Healthcare costs, inflation, and unexpected life events can all affect your budget. Conducting regular spending reviews can help you spot potential issues early and reduce the likelihood of having to make significant lifestyle changes later.

If you find you’re over your retirement budget, you’ll likely want to pull back on what you’re spending or add another source of income, such as an income annuity. You might consider other creative ways to find income, too, like downsizing your home or getting a retirement job.

Understand your required minimum distributions

You may have already started withdrawing from a retirement savings account such as a 401(k), 403(b) or either a Roth or traditional IRA. If you haven’t, you’ll be required to start by April 1 following the year that you turn 72. It’s important to remember that if you don’t start taking these required minimum distributions (RMDs) from your retirement accounts, you could be subject to penalties or added taxes, so it’s important to keep that deadline on your radar.

If you're required to take RMDs, calculate the total amount you must withdraw from your retirement accounts and make sure you take it by December 31. While withdrawals from traditional 401(k)s and IRAs are generally taxable, properly managing your RMDs can help you avoid costly mistakes. This means withdrawing at least the IRS-required minimum amount each year, planning for the associated tax bill, and meeting all deadlines to avoid potentially steep penalties.

After taking a look at your budget, if you’re finding you need a bit more monthly income, retirement savings account distributions can be an additional source to consider.

Actively monitor your portfolio

The state of the market can change significantly from month to month, so though you’ll want to do a deep dive into tracking investments at least once a year, checking in on your investments more than once a year is a good practice in retirement. Make sure your asset allocation is set in a way that matches your appropriate risk level at the current moment so you can make changes if needed. If you’re not at your desired risk level, try rebalancing some of your investments to get closer to where you’d like to be.

Another common retirement mistake is becoming either too conservative or too aggressive with investments. While protecting your nest egg is important, retirees may spend decades in retirement and still need some level of growth to help their savings keep pace with inflation. Regular portfolio reviews with a trusted professional can help ensure your investments continue supporting your long-term goals.

Be strategic about giving

In meeting with your financial advisor, it could be a good idea to talk about charitable gift-giving strategies to maximize your income tax deductions. If you’re over 72, you could make charitable distributions from a qualified retirement account up to $100,000 per year that would satisfy RMDs and not count as income.

If you have a large estate, you could look into some current tax exemptions for transferring wealth. Historically high lifetime estate, gift and GST tax exemptions are set to expire in 2026, so it could be worth your while to take advantage of these now in case tax policies change.

Keep your estate plan updated

Executors, trustees, medical powers of attorney are important people to carry out your wishes. Make sure you are keeping them updated, as this is one of the biggest mistakes people make with their wills. Be sure that you have people you trust in these roles so your estate is handled the way you’d like when you’re gone. As you add new grandchildren or spouses to the family, you’ll also want to keep your beneficiaries up to date. Taking time to review your wishes can help ensure that they match your current values. If you haven’t already, discuss your estate plan with your loved ones to make sure everyone is on the same page and prepared for what's ahead.