7 Smart Money Moves Fidelity Says Will Make Retirement More Comfortable

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Most Americans think of retirement as a time when they can finally hang up their work boots and enjoy a life of leisure, whether that consists of traveling, spending more time with family or pursuing other personal dreams and goals. But the reality of higher living expenses and low overall savings can make retirement a difficult stretch for many.

To help alleviate these concerns, Fidelity created a list of major money moves people can use to make their retirement more financially comfortable.

Here’s a look at the recommendations from the financial services firm, along with additional insights and advice from experts to help you comfortably walk into the sunset.

1. Reevaluate Itemizing

Ever since the Tax Cuts and Jobs Act nearly doubled the standard deduction (starting in tax year 2018), the vast majority of Americans stopped itemizing their deductions. According to the IRS, nearly 90% of taxpayers claimed the standard deduction in that year, and that percentage has remained elevated.

However, temporary changes enacted by the One Big Beautiful Bill Act (OBBBA) mean that for some taxpayers, itemizing may come back into style. Specifically, the OBBBA temporarily quadrupled the state and local tax deduction limit from $10,000 to $40,000 ($20,000 if married filing separately).

This change potentially unlocks tens of thousands of dollars in deductions for those who qualify. Taxpayers most likely to benefit are those who:

• Pay high levels of state and local taxes
• Have large mortgage interest expenses
• Make large charitable donations
• Incur high levels of medical expenses above the 7.5% adjusted gross income (AGI) threshold

As this window is temporary, it’s a good time to reassess your tax situation and take advantage of the additional deduction while you can, if applicable.

2. Don’t Forget the New Senior Deduction

Older taxpayers received something of a windfall starting in tax year 2025 in the form of a new senior deduction. As described by the IRS, if you turned 65 at any time before the end of the tax year, you’re allowed the additional deduction, which amounts to $6,000 for tax year 2025. You can receive an additional deduction of $1,600 if you’re also blind, then rising to $2,000 if you’re unmarried and not a surviving spouse.

This deduction is in addition to the existing age-based standard deduction, as pointed out by H&R Block. That amounts to an additional $2,000 for those filing as single or head of household, or $3,200 for those married and filing jointly. All-in-all, this boosts the total available standard deduction to these levels for various filing statuses:

• Single: $23,750
• Head of household: $31,625
• Married filing jointly: $46,700

The one caveat regarding the enhanced senior deduction is that income limits apply. Per the IRS, the deduction begins to phase out for taxpayers with modified adjusted gross income over $75,000, or $150,000 for joint filers.

3. Explore Roth Conversion Possibilities

The best time to do a Roth conversion is when your account value is at its lowest. This is because the amount you convert from a traditional IRA to a Roth is considered taxable income. As of early 2026, however, your Roth account may potentially be near its all-time high value, particularly if it is mostly invested in stocks. This is because the stock market has posted three solid years in a row, with prices now hovering around all-time highs.

But market veterans will tell you nothing goes up in a straight line, and a correction in the stock market would not be unexpected at all. In fact, it may even be healthy. While no one wants to see their account values drop, keep this silver lining in the back of your mind — a market selloff could lead to a better opportunity to consider a Roth conversion.

4. Strategize Your Required Minimum Distributions

Required minimum distributions (RMDs) should be actively planned, rather than an afterthought. If you take withdrawals from an account that is down in value, for example, you can negatively affect the longevity of your nest egg. Since you’re allowed to delay distributions until April 1 of the year after the RMD, waiting for your account to bounce back can sometimes be the right call, according to Fidelity. Remember, you can also aggregate your RMDs across accounts, so taking money out of an account that is down the least can be a smart move.

5. Understand New Charitable Giving Rules

Charitable giving rules changed with the OBBBA, making it harder for smaller donors to garner any benefit. Specifically, according to Kiplinger, you can only deduct charitable gifts that exceed 0.5% of your AGI, starting in 2026. This makes bunching contributions a more dependable strategy now, as it makes it easier to exceed the deduction threshold.

Qualified charitable distributions (QCDs) from an IRA are another strategy that can both help reduce taxes and allow for larger charitable contributions. If you’re 70½ or older and meet other requirements, you can donate as much as $111,000 directly from an IRA to a qualifying charity.

6. Boost Predictable Income

Retirement can be much more stressful if you’re relying on the success of your investments to fund your distributions. Reliable, predictable sources of income like pensions, annuities and Social Security can help smooth out the ups and downs of the markets by paying fixed amounts regardless of current conditions. The more predictable income you can generate, the more flexibility you’ll have with the rest of your assets, leaving them to recover when markets are down and taking out profits when they rally higher.

7. Protect Your Portfolio From High Long-Term Care Costs

Long-term care is one of the riskiest variables that retirees face. As you can’t know with any certainty just how much you’ll have to spend on medical care in your golden years, it’s tough to plan for it. But don’t let this uncertainty derail your retirement plan. Work with an advisor to develop the right blend of insurance policies, annuities and care benefits to ensure unexpected medical costs don’t ruin decades of careful saving.

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