Could Your Retirement Plan Be Outdated? 7 Financial Checks to Make Before 2027

A retirement plan can become outdated long before retirement begins. Rising living costs, market losses, and unexpected healthcare expenses can undermine years of saving.

With 2027 approaching, reviewing key financial decisions could help Americans identify potential shortfalls and prepare for a more secure retirement. From investment risk to estate arrangements, these seven checks can help determine whether your plan still meets your needs.

1. Check Whether Your Retirement Savings Are Sufficient

Your original savings target may no longer reflect your income, expenses, or lifestyle goals. Housing costs, debts, travel plans, and support for relatives can all affect how much you need.

Compare your savings with expected Social Security benefits, pension income, and other resources. A retirement calculator can estimate whether your projected income will cover expenses, although results depend on the assumptions used. If your income falls short, consider increasing contributions, reducing spending, or working longer.

2. Review Your Investment Risk

Your portfolio may no longer match your original strategy. Strong stock market performance can increase your exposure to shares, while market losses close to retirement can be difficult to recover from if you need to withdraw money.

Review your allocation across shares, bonds, cash, and other investments. Consider whether it reflects your retirement timeline, income needs, and tolerance for losses. Rebalancing may help restore your intended allocation.

3. Examine Your Retirement Account Taxes

The types of accounts holding your savings can affect how much income you retain after tax. Traditional individual retirement accounts (IRAs) and 401(k) plans generally offer tax-deferred growth, with withdrawals typically subject to income tax. Roth accounts can provide tax-free qualified withdrawals when the relevant conditions are met.

Withdrawals from tax-deferred accounts may also affect the taxation of Social Security benefits or income-related Medicare premiums. Review your taxable, tax-deferred, and tax-free savings. Roth conversions may offer flexibility, but converting tax-deferred funds can create an immediate tax bill.

4. Reassess Healthcare and Long-Term Care Costs

Healthcare expenses can strain retirement budgets through insurance premiums, deductibles, prescription costs, and other out-of-pocket payments. Review your coverage during the relevant enrolment period. Check whether your plan meets your needs and whether premiums and deductibles remain affordable.

Eligible Americans with qualifying high-deductible health plans may contribute to a health savings account (HSA), which offers tax advantages for eligible contributions, growth, and qualified medical withdrawals. Restrictions apply, including rules concerning other coverage and Medicare enrolment.

Long-term care also deserves attention. Medicare generally does not cover extended custodial care, such as ongoing help with everyday activities. Savings, private insurance, or other resources may be needed to meet these costs.

5. Update Your Will and Estate Plans

Marriage, divorce, a new child, or the death of a beneficiary may make existing estate arrangements outdated.

Review your will, financial power of attorney, healthcare directives, and beneficiary designations on retirement accounts and insurance policies. These designations generally determine who receives the assets covered by an account or policy, subject to applicable law and account terms.

Moving to another state may also warrant a review because estate planning requirements can differ by jurisdiction.

6. Discuss Retirement Goals With Your Family

Different expectations about retirement can create financial disagreements. Couples may disagree about when to stop working, where to live, or how much to spend.

Discuss major expenses, housing plans, and financial priorities before making significant decisions. Consider whether you may need to support ageing relatives, fund education, or manage caregiving responsibilities. These conversations can clarify shared priorities and prepare family members for future commitments.

7. Coordinate Advice From Financial Professionals

Investment, tax, and estate planning decisions often overlap. Retiring earlier than expected, for example, could affect withdrawals, taxable income, and healthcare arrangements.

If you work with financial advisers, accountants, or estate planning lawyers, ensure they have the relevant information to coordinate their advice. This can help you understand how individual decisions affect your wider retirement strategy.

Review Your Plan Before 2027

A retirement plan should reflect your current circumstances, not assumptions made years ago. Reviewing savings, investments, healthcare costs, and estate arrangements can help identify potential gaps before they become harder to address.

These seven checks provide a starting point, not a guarantee of financial security. For complex investment, tax, or estate decisions, consider consulting a qualified professional familiar with your circumstances. The aim is simple: ensure your retirement plan still supports the future you want.