Top 5 retirement tips for people over 55

Retirement looms large for most people once they enter their 50s and beyond. But what exactly should you know — and do — before you take the big leap out of the working world?

While opinions can vary, experts emphasize at least five key areas to consider in preparation for this big life change. Here’s what they had to say:

1. Plan your finances with the future in mind

Financial preparedness is the cornerstone of a successful retirement. Shawn Plummer, CEO of The Annuity Expert, stresses the importance of long-term planning, keeping inflation and health care costs top of mind.

“You need to be planning for your 75-year-old self,” Plummer said.

Long-term care is a major expense many retirees overlook. Some facilities can cost $85,000 per year or more, and Medicaid eligibility first requires depleting personal savings. To avoid financial strain, Plummer advises securing long-term care insurance before it becomes necessary.

“My grandparents were kind of in this situation where my grandmother had Parkinson’s and my grandfather was perfectly healthy,” he said.

A Medicaid annuity can help protect a healthy spouse from financial depletion.

Life insurance is another piece of the financial puzzle that shouldn’t go overlooked. For those relying on a 401(k), Plummer recommends delaying Social Security withdrawals, if possible.

“It also preserves the possibility of children having an inheritance,” he said.

David John, a senior strategic policy adviser at the AARP Public Policy Institute, reinforces the importance of saving at any stage.

“We know for a fact that having any level of savings at all is better than having no savings,” said John, who is a University of Georgia alumnus. He urges people over 55 to save whatever they can, even if they’ve previously neglected it.

2. Map out your retirement lifestyle

Retirement isn’t just about quitting work — it’s about meaningfully filling your time. Many retirees struggle with boredom once they’ve completed long-awaited projects and home tasks.

“You need to get a routine,” said Plummer, a licensed Retirement Planner (CRPC), insurance agent, and annuity broker.

Hobbies, travel, volunteering or even part-time work can provide purpose and prevent depression. John added that retirees must also consider how socializing will change once they leave the workforce.

“A lot of our social networks are connected with work, and when you retire, that will at least change and maybe end,” he said.

3. Be strategic about spending and investments

Understanding your spending habits ahead of retirement is crucial.

“You may find you’re actually spending money on things (that are) a habit but not necessarily things you’re enjoying,” John said.

He recommends tracking expenses for a month or two to gain clarity. Investments should be approached with caution. Plummer warns against risky market moves to compensate for lost savings.

“If you can’t afford to lose money, don’t put your money at risk,” he said.

John agrees, warning against panic-driven financial decisions.

“That is a huge mistake,” he said, comparing reckless investing to gambling.

He also urges retirees to be wary of financial schemes.

“As you’re planning your future, make sure you’re getting the right level of advice — and that means being very wary of anything that comes in email or that you start to see on the internet,” John said.

For Social Security, John suggests a calculated approach.

“For the most part, the later you can afford to claim Social Security, the bigger your check will be,” he said.

4. Make smart housing and travel decisions

Housing and travel play a significant role in retirement planning. Downsizing isn’t necessary for everyone, but for some it can free up funds for other pursuits. Plummer’s parents sold their home to travel and never looked back.

“Unless it suits your personality (to stay), I don’t see anything wrong with downsizing, selling your home, traveling,” he said. However, he cautions against costly investments like purchasing an RV unless your financial situation makes it affordable. Instead, renting as needed or exploring alternative travel methods — such as the house-sitting route his parents took to explore Europe — can be financially smarter.

“My mom is going to be 72 this year. I don’t think I’ve ever seen my mom or my stepdad this happy in their entire lives,” Plummer said. “But they almost ruined it by taking their savings and buying an RV.”

5. Protect your legacy with estate planning

Atlanta-based estate planning attorney Amber C. Saunders of The Saunders Firm, P.C. urges retirees to get their legal affairs in order, including wills, health care directives, and Power of Attorney. Saunders was inspired by her great-grandmother, who emigrated to Boston and purchased a home that provided financial stability for generations.

“Around age 55 is a planning period,” she said.

Saunders calls an estate plan “the last love letter you get to write.” Avoiding these discussions is a common mistake, she said.

“I find that humans in general don’t like to face their mortality even though there are certain things that are going to happen to all of us,” Saunders said. “We just avoid it and act as if it’s not going to happen.”

Additionally, she encourages retirees to document their personal stories.

“One of the things we do in our practice is giving people an opportunity to record legacy interviews,” she said.

Capturing personal history can be a meaningful gift to future generations.

Retirement isn’t just a financial milestone — it’s a lifestyle shift that requires thoughtful preparation. By planning ahead, making informed financial decisions, and considering long-term care and estate matters, experts say retirees can set themselves up for a fulfilling future.