3 ways retirees can improve their finances right now

June 4, 2026 - 17:24

Retirement doesn't mean financial planning stops. In fact, with inflation and market shifts, retirees need to stay proactive. Here are three straightforward ways to improve your financial situation today.

First, review your withdrawal strategy. Many retirees automatically pull a fixed percentage from their savings each year, but that can be risky. Instead, consider a dynamic approach. In years when the market is down, reduce withdrawals to avoid selling investments at a loss. When the market is up, you can take a bit more. This simple adjustment can extend the life of your portfolio by several years. Talk to a fee-only financial planner about a "guardrails" strategy that adjusts based on your account balance.

Second, look for hidden tax savings. Many retirees overlook the benefits of Roth conversions. If you have traditional IRA or 401(k) money, converting a small amount to a Roth IRA each year can reduce your future required minimum distributions and lower your taxable income later. Also, check if you qualify for the Retirement Savings Contributions Credit, even if you are over 65. It is often forgotten but can put cash back in your pocket.

Third, cut unnecessary expenses without sacrificing quality of life. Review your subscriptions, insurance policies, and utility plans. For example, many retirees overpay for Medicare Part D drug plans. Use the Medicare plan finder tool during open enrollment to match your prescriptions to a cheaper plan. Also, consider downsizing your home or moving to a state with no income tax on retirement benefits. Even small changes, like switching to a high-yield savings account for your emergency fund, can add up over time.

Taking these steps now can help you feel more secure and in control of your retirement income.