According to a Pew Research poll conducted in late 2025, only 26% of American adults feel very confident that they'll have enough income and assets to last them through retirement. You don't want this to be you.
Whether you're claiming Social Security early, at full retirement age (FRA), or waiting until 70 to maximize your benefits, it's vital to understand where you stand. As soon as you can check off these six steps, you know you're good to go and ready to claim Social Security benefits.
Image source: Getty Images.
1. Inventory your assets
You can't know if you have any financial gaps to fill until you've taken a full inventory of your assets. This includes taking stock of:
- How much you expect to receive in Social Security benefits
- Income from pensions and/or annuities
- How much you have in retirement accounts, including a 401(k), IRA, Roth IRA, or other account type
- Real estate and property values
- Any other income you have saved
2. Look at healthcare costs
Healthcare costs in retirement are among the most underestimated, as many people believe Medicare will cover all their medical expenses. Make sure to consider:
- Medicare premiums and deductibles
- Prescription drug coverage
- Other out-of-pocket expenses, including co-pays, vision, and dental
- Long-term care and in-home services
3. Pay off high-interest debt
Even if you plan on taking a mortgage into retirement, try not to bring any high-interest debt along. That includes credit card debt, payday loans, and some personal loans. If you want to be comfortable in retirement, employ a plan like the Avalanche or Snowball Method to pay it off before claiming Social Security and starting a new chapter in life.
4. Create a post-retirement budget with flexibility
When it comes to a post-retirement budget, flexibility is key. That's because you need to factor in issues you have little to no control over. This includes what your budget will look like when inflation is especially high, or there are market fluctuations, and you don't want to withdraw as much as usual. It should also include what you plan to do in case of emergencies or health concerns.
5. Build an emergency fund
Just as you've needed an emergency fund throughout your career, you need one in retirement. In fact, you may need a larger fund than you needed while you were working. You don't want to drain money from a retirement account to cover an unexpected expense, or draw more than absolutely necessary when the market is depressed, and your assets aren't worth as much.
6. Become familiar with your healthcare options
The surest way to run smack-dab into stress is to wait until the last minute to learn about healthcare options. If you'll be at least 65 when you claim Social Security, take time to explore the health insurance that will be available to you. This includes:
- Medicare Part A, B, D, and supplemental plans
- Medicare Advantage as compared to Medigap
- Long-term care coverage
If you're claiming Social Security before age 65 and don't plan to continue working, make it a point to find another form of health insurance.
The scariest part of retirement planning can be the fear that you'll leave something out of the equation and find yourself financially short in retirement. Taking time to check and double-check your plans can help prevent it from happening.
