Now that 2025 is slowly but surely winding down, you may be starting to make some plans for 2026. And one of those plans may involve leaving your job for good.
Of course, that's a huge decision to make. And you may not be ready to declare your retirement in 2026 official just yet.
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But if there's a chance you'll be retiring in the new year, then it's important to make some key financial move ahead of time. Here are three such moves to make now if retirement is a possibility at some point in 2026.
1. Assess your savings
The last thing you want to do is retire at a time when your nest egg isn't where you want it to be. Granted, you'll probably have income from Social Security to fall back on in addition to the money you've saved. But it's important to make sure that your 401(k) or IRA can provide you with enough annual income to cover your costs -- especially if you're thinking of retiring soon but waiting on Social Security for a few extra years.
The first thing you should do is see what balance you have in each of your retirement accounts. Then, add up those balances and figure out what withdrawal rate you'll use to manage your savings.
Financial experts have long supported a 4% withdrawal rate. If that's what you decide to use, see what income it gives you.
For example, if you have $1.5 million across your various retirement accounts, a 4% withdrawal rate provides you with $60,000 a year. If you won't be claiming Social Security benefits for a while, you'll need to make sure that income will suffice.
2. Reduce risk in your portfolio
If there's a chance you'll be retiring in 2026, then now's the time to make sure your portfolio isn't invested too aggressively. You don't want to dump your stocks completely once you retire, since you'll need your portfolio to continue generating gains. But you also need to be careful, since the market can be quite volatile.
One thing you may want to do ahead of a potential 2026 retirement is shift some of your growth stocks into dividend stocks. Those tend to be more stable, and the dividends they produce can help offset potential losses in your portfolio if the market undergoes a near-term shakeup.
Also make sure your investments are well diversified. And consider shifting into some tax-advantages assets, like municipal bonds, if you expect to start using your portfolio for income.
3. Figure out what to do about healthcare
If you'll be 65 in 2026, then you'll probably be able to sign up for Medicare in conjunction with retirement. If you're too young for Medicare, you'll need health coverage until you're able to enroll.
You may be able to hop onto a spouse's workplace plan, which could be a cost-effective solution. Otherwise, your options may be pricier than you'd expect, so it's important to research them now and know what you're potentially dealing with.
COBRA, for example, may allow you to retain your current employer health plan for a period of time. But you'll also generally be looking at the full cost, as opposed to the employer-subsidized premiums you're paying for now.
You may be on the fence about retiring in 2026. But if you're even thinking about it, that alone should inspire you to make these moves. That way, if you do decide to stop working for good next year, you'll be well prepared. And if you end up retiring a bit later, you'll at least have a solid framework for it so you can go in with more confidence.
