Retiring in 2026? 4 Retirement Planning Steps to Take Now
By Paul K. Doak, CFP
What do you want to do in retirement? Maybe you picture yourself traveling the world, picking up a new hobby, or spending more time with your grandkids. Whatever your retirement dreams may be, there’s a dull (but very important!) hurdle standing between you and them: retirement planning.
The retirement planning process is usually a long one. But if you’re hoping to retire in 2026, these four moves can help you determine whether you’re ready.
1. Take a Look at Your Final Financial Checklist
Retirement planning is a lot more complicated than grocery shopping. We don’t just hand clients a list and tell them they’re ready to retire once they’ve checked off each item.
Planning for retirement is an individualized process, and it’s more than a numbers game. I work with each of my clients to help them build a unique pre-retirement checklist, but these are some of the items I commonly include:
Plan Your Expenses
Most people set a savings goal when they start retirement planning. However, that savings goal almost always shifts over time. You won’t be bringing in any additional paychecks during retirement, so you need to verify that your Social Security payments, retirement account distributions, and other income streams are enough to cover your expenses.
Knock Out Your Debt
Nothing eats into your retirement savings like ongoing debt payments. You might not be able to obliterate all of your debt before you retire, but you should aim to pay off as much as you can.
Line Up Health Insurance
For many people, health insurance is tied to their career. This means that in retirement, they need to find new health insurance coverage.
If you retire after you turn 65, you might be able to rely on Medicare coverage. But if you’re planning on retiring before then, you might need to look into one of these options:
Insurance through the Health Insurance Marketplace
Temporary COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage
Private health insurance
Coverage through your spouse’s employer
Whatever you do, don’t just go without health insurance and cross your fingers that you’ll stay healthy. If you don’t have insurance, just one unexpected medical event could wipe out a huge portion of your retirement savings.
2. Test Your Retirement Income With a Dry Run
Saving diligently gets you part of the way to retirement, but understanding how your income will actually feel month to month is just as important.
One of the most effective ways to test your readiness is to run a three-month trial. If you expect your retirement income to be X, try living solely on that amount for three months and see how it goes.
If you make it without strain, that’s a good sign you’re on the right track.
If it feels too tight, you’re not alone; more than 60% of retirees end up delaying retirement slightly or rethinking part-time work options before taking the leap.
From there, we can map out your actual income streams (401(k)s, IRAs, Social Security, and others), then build a sustainable withdrawal plan and tax strategy. The more clarity you have now, the fewer cash-flow surprises you’re likely to face later.
3. Keep Retirement Stress Low With the Right Investments
When you’re doing retirement planning, you can’t just think of the best-case scenario. Your savings and investment strategy should prepare you for the worst case as well. When you have a balanced, diversified portfolio, you and your retirement savings can be prepared to weather economically turbulent times.
4. Review Tax Law Changes and How They Impact You
The One Big Beautiful Bill Act (OBBBA) was passed in 2025, and it makes significant changes to federal tax law. Some of the changes include:
Through the year 2028, seniors may claim an additional $6,000 tax deduction.
529 plans have expanded uses (including more K-12 expenses and workforce training) and higher withdrawal limits.
Through 2029, the state and local tax (SALT) deduction cap increases from $10,000 to $40,000.
The OBBBA also makes the tax brackets and increased standard deductions that were established by the 2017 Tax Cuts and Jobs Act (TCJA) permanent. If you’re planning for retirement, this provision offers you some degree of financial certainty moving forward.
Need Help With Retirement Planning?
For most people, retirement planning is both stressful and tedious. At I.D. Financial, we can’t promise you that retirement planning is exciting, but we’ll do our best to help you build a retirement you can look forward to.
Have questions about retirement planning? Get in touch with us today. Ready to get started? We invite you to schedule a meeting with Paul online. Call (206) 774-0262, email paul@id-financial.com, or schedule online.
About Paul
Paul Doak, CFP®, is the founder of I.D. Financial, a financial planning firm based in Bothell, Washington. He provides goals-based wealth planning and tax reduction strategies designed to align with each client’s unique life plans. With over 25 years of financial services experience, Paul is dedicated to simplifying complex financial matters and helping clients navigate life’s transitions with clarity and confidence. His approach begins with listening; as a sounding board for each client’s concerns and goals, he creates personalized strategies that reduce stress and allow them to focus on what matters most. Known for his responsive and educational style, Paul provides a judgment-free zone, focusing on the future rather than dwelling on past financial decisions.
A CERTIFIED FINANCIAL PLANNER® professional and Life Underwriter Training Council Fellow, Paul holds a bachelor’s degree in political science and economics from the University of Southern Maine. Based in Bothell, Washington, with his wife and son, outside of work, he enjoys skiing, reading, woodworking, traveling, fishing and camping with his son, and helping his son with Scouting. To learn more about Paul, connect with him on LinkedIn.