Emekliliğinize 5 yıl kaldı mı? Bu 5 şeyi şimdi yapın ya da nakdin tükenmesi riskiyle karşı karşıya kalın

Are you 5 years from retirement? Do these 5 things now — or risk running out of cash

Vishesh Raisinghani

Wed, September 16, 2026 at 1:05 PM GMT+3 7 min read

Lucigerma/Shutterstock

You've put in your hours, weeks and years at the workplace, and now the reward of retirement is finally in sight, with just five years to go until you turn in your professional badge. That's the good news. But now you have to think about whether you're truly prepared to take this step.

Americans are working longer, with the average retirement age at around 62 – up from 57 in the 1990s.

Must Read

Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP
The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes

But working longer doesn't always mean people are more prepared. Just 57% of Americans aged 55 to 64 reported having retirement assets in the Fed's latest consumer household survey, meaning 43% had none. Less than 10% of people in that age group had more than $1 million in retirement savings.

But there's still plenty of time to get your finances in order. At this age, you may be at your earnings peak, your kids are likely grown and out of the house and your mortgage may be paid off, or close to it. It's now time to focus on yourself and the post-work life you've always imagined.

Here are five steps you can take to ensure you're ready to retire in the next five years.

1. Supercharge your tax-advantaged accounts

If you're over the age of 50, you can not only max out your 401(k) but also add a little something extra. For 2026, this means you can contribute up to $24,500, then, if you are ages 50 to 59, you can contribute another $8,000. And, due to adjustments made in the SECURE 2.0 Act of 2022, if you are 60 to 63, you can contribute another $3,250, for a whopping total of $11,250 – also known as a "super catch-up" contribution.

This means that if you are 50 to 59, the total you can contribute to your 401(k) this year is $32,500. If you are 60 to 63, that total jumps to $35,750.

One important change from the SECURE Act that went into effect this year – if you made over $150,000 in FICA wages 2025, all catch-up contributions must be made through a Roth 401(k) instead of your traditional account, which means it will be made on an after-tax basis. If you don't have access to a Roth 401(k) through your employer, you can make this contribution to a Roth IRA.

And speaking of IRAs, those also offer catch-up contributions: For 2026, you can make a regular contribution to a Roth or traditional IRA of $7,500, but if you are 50 or over, you get to contribute another $1,100, for a total of $8,600.

If you take advantage of these opportunities now, you may find yourself in a much better place in five years.

2. Figure out a robust retirement income plan

It's easy to get so caught up thinking about the size of your nest egg that you forget to plan for withdrawals. Most people rely on the standard 4% withdrawal rule to plan their retirement.

But as you approach this new phase of life in which you don't have steady employment income, you really have to plan for how and when you withdraw money. For instance, delaying Social Security benefits could increase the monthly amount you receive. This could also give you enough time to sell some assets from your taxable brokerage accounts for tax gain harvesting or to convert 401(k) funds into a Roth IRA for tax-free growth.

If you have other sources of retirement income, perhaps from rental property or traditional defined benefit pensions, you need to figure out the tax consequences of these streams.

Simply put, a balanced and well-crafted withdrawal strategy will minimize taxes and maximize your quality of life in retirement.

3. Stress-test for market volatility

It's likely that your retirement plan is based on simple assumptions about market returns and withdrawal rates. For instance, perhaps your plan assumes the stock market will deliver a 7% annual return and your annual withdrawals will be at 4%.

However, it's important to note that these are long-term averages and you need to stress-test your portfolio for prolonged market downturns. If, for example, the stock market drops 10% in your first year of retirement and you withdraw 4%, at the end of the year you're left with a portfolio that is 14% smaller. This can have a negative long-term impact on how much money you can withdraw during the rest of your retirement.

Stress testing your portfolio and creating a back-up budget or emergency fund can help you prepare for market downturns and unexpected volatility so you can sleep better at night, even amid economic turmoil.

4. Get tax-optimized

Five years from retirement could be the ideal time to balance out your nest egg and spread it across multiple accounts. If you have too much accumulated in taxable brokerage accounts, you should consider contributing and maxing out your tax-deferred accounts for the next few years – and taking advantage of those catch-up contributions outlined above.

On the other hand, if you have too much in a 401(k) plan and you want to be able to withdraw money tax-free in your retirement, this could be the ideal time to consider Roth conversions.

Your late 50s and early 60s are also a good time to plan for your required minimum distributions (RMDs) from your traditional 401(K), which generally kick in at 73 (if you were born in or after 1960, that goes up to age 75).

5. Create a lifestyle plan

All of your financial plans ultimately hinge on your lifestyle. That means you need a lifestyle plan just as much as a withdrawal or tax plan. If you want to continue working side gigs or part-time, build that into your plan. If you want to spend more time traveling, don't neglect that in your annual budget.

If you're five years away from retirement, test the retirement lifestyle with a short break and see what you enjoy doing with your leisure time. This is the perfect opportunity to build a lifestyle plan for your golden years. — with files from Rebecca Stropoli

What To Read Next

A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
Millionaires under 43 hold only 32% of their wealth in stocks. Here's where their money is actually going
Savvy Americans are using 1 simple 'claw back' move to erase pain at the pump forever — act now before gas prices rocket higher (edited)
Need to grow your cash? Get monthly checks from this real estate income fund — it has historically paid a consistent annualized dividend of 8% or higher

Get Warren Buffett's best investing lessons, free. Join 250,000 readers getting Moneywise's sharpest money reporting every week. Subscribe and we'll send you our guide to the ideas that built Buffett's fortune as a welcome gift.

This article originally appeared on Moneywise.com under the title: Are you 5 years from retirement? Do these 5 things now — or risk running out of cash

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.