6 Easiest Steps To Take in 2025 To Begin Planning Your Retirement
Written by
Cindy Lamothe
Edited by
Amber Barkley
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You’ve been postponing it for long enough and it’s finally hit you: Retirement is coming sooner than later, and you don’t want to be found unprepared.
Luckily, there are some easy steps you can take this coming year to begin planning for it.
Below are some expert tips to help you start 2025 on the right foot. Plus, check out the money moves the wealthy make before a new year.
Audit Your Lifestyle Now, Not Later
Most people skip this, but assessing your lifestyle costs now helps prevent “lifestyle creep,” said Adam Garcia, certified financial planner and founder of The Stock Dork. “Track your spending, then set a baseline to help you visualize retirement needs. You’ll avoid future surprises and ensure your retirement budget is realistic from day one.”
Aviva Pinto, managing director of Wealthspire Advisors, recommended making a financial plan. “Run various scenarios and at different income assumptions.”
She said to include your current needs — food, clothing, shelter, etc. — your future wants, like buying a house, getting married and putting kids through college, and retirement wishes, like retiring at a certain age, taking vacations every year or buying a vacation home.
Pay Yourself First
“We are living to be 90 plus years on average,” said Pinto. “You need to invest for your future.”
For this, she suggested putting aside a little bit each week and putting it into the market. “Forget about market fluctuations — you have a very long-term time horizon.”
Open a Tax-Advantaged HSA
According to Garcia, opening a Health Savings Account (HSA) offers triple tax benefits and can double as a retirement tool.
“Contribute now, use it for qualified expenses and let it grow. By retirement, those tax-free withdrawals will be a relief for healthcare expenses,” he explained.
Focus On Skills, Not Just Savings
Retirement can be lengthy, said Garcia, meaning a potential need for supplementary income.
“Consider developing a skill now that could earn you some cash during retirement,” he said. “This could ease any future financial strain without a heavy impact on your savings.”
Build a ‘Trial Retirement’ Fund
“Practice living off your projected retirement budget for six months,” Garcia added.
Not only does this help test your plan, but he said any excess money you save during this time can go directly to your retirement accounts, adding an immediate boost.
Work With a Wealth Manager
“Create a budget so you can see what you have left over after expenses to use for savings and investments — after setting aside an emergency fund for unexpected expenses,” Pinto said.
She said to put a line item on the budget for savings and have the amount automatically deposited into your savings or investment account each month.
“Forced savings that you don’t see are less likely to be spent!” she explained. “Make sure you are spending within your means.”
Pinto added that most people know what they make but don’t know what they spend or what they spend or on. “Once they collect that information — year-end credit card and bank statements for ATM withdrawals are a great place to start — if you find you have money left over each month, put that money to work.”
If you do not have money left over, she said to look at your budget and see where you can cut back.
“Can you eat out less? Can you cut back on clothing purchases? Are you going to too many events? Can you invite friends over rather than spending money going out?” she asked. “Awareness is key, and it will show you where you can make improvements.”
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