Saving & Spending Budgeting & Expenses

9 Best Money Moves Retirees Can Make in December 2025

Smart December planning can help retirees stay ahead of year-end deadlines, holiday spending, and key financial decisions before 2026 begins.

By Kristin Hitchcock

Edited by Laura Hohenstein

Updated Dec. 2, 2025

December tends to pull retirees in two directions at once: the joy of family gatherings and the reality of year-end financial decisions that deserve attention. It's a month when spending can creep up, deadlines arrive quickly, and next year's changes start coming into focus.

Taking a little time now to make a few smart money moves for seniors could help you finish 2025 on solid footing and step into the new year with fewer surprises.

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Review your holiday budget

Holiday spending often feels harmless until the January credit-card statement lands. Before gift-buying and hosting ramp up, take a beat to check in with your budget. Consider how much you truly want to spend, not what you think you "should" spend.

Factor in travel costs, grocery prices, and last-minute extras, which often rise late in the month. A quick reset now could keep your savings plan on track heading into the new year.

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Double-check Medicare open enrollment decision

The Medicare Annual Enrollment Period runs through December 7, which means December is the final chance to update coverage for 2026. If you haven't reviewed your options yet, compare your current prescription list, provider preferences, and out-of-pocket costs with available plans.

Even small coverage changes could influence your total medical spending next year. Take a few minutes to verify that your plan still fits your needs, especially if you had new prescriptions or doctor visits in 2025.

Prep for your 2026 Social Security payments

Social Security's 2026 cost-of-living adjustment kicks in next month, but December is when many retirees sit down and look at what those numbers might mean. It doesn't require a complicated spreadsheet, just a sense of how next year's benefit could shift your monthly budget.

If you have taxes withheld from your benefits, this is also a practical moment to confirm whether the amount still feels right for your overall income picture in 2026.

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Make sure you're meeting your 2025 RMD requirements

If you're age-eligible for required minimum distributions, December is the cutoff to complete them. It's surprisingly easy to assume you've taken the right amount when you've only taken part of it.

Consider double-checking the numbers with your custodian, especially if you have multiple accounts. And if you're exploring qualified charitable distributions as a way to support a cause you care about, this is the last month to count it toward your 2025 RMD.

Look for last-minute tax moves

December isn't just about wrapping presents. It's also about wrapping up your financial year. If you itemize deductions, you might look at charitable gifts, medical expenses, or other deductible costs to see where you stand.

Investors with taxable accounts might also check whether any loss-harvesting opportunities exist to offset gains from earlier in the year. No single move needs to be dramatic; the point is simply giving yourself a clean slate heading into April.

Revisit your withdrawal strategy

Most retirees build a withdrawal plan and then try to stick with it, but real life doesn't always cooperate. December is a natural checkpoint to ask: Did my spending match what I expected this year? Did health care costs jump? Did travel cost less than I budgeted for?

Minor adjustments now (either increasing or decreasing planned withdrawals) could help your portfolio support you more comfortably in 2026.

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Check your prescription drug costs before January pricing resets

Drug prices shift quietly from year to year, and many retirees only notice once a refill jumps. December is a good time to review your prescription spending in 2025 and ask a pharmacist whether lower-cost alternatives are available.

A simple switch to a preferred pharmacy or a 90-day refill could trim next year's spending. It's not about reinventing your entire medication routine; it's about making sure you're not paying more than necessary.

Review winter and early-spring travel plans

If you travel in the winter, take a look at your reservations while you still have time to make changes. Prices fluctuate, and some bookings allow cancellations or credits without penalty. A few minutes of checking flights or hotel rates could help you lock in something better or confirm that your original plan still makes sense.

It's also worth confirming whether any travel insurance you purchased remains in effect for next year.

Give your emergency fund a quick end-of-year checkup

It's easy to dip into savings during the holidays without meaning to. Before the calendar turns, see where your emergency fund stands and set a simple, doable plan to rebuild it if needed. This doesn't mean making giant deposits. Small, steady contributions often feel more realistic.

The goal is to head into 2026 knowing you have a buffer for unexpected expenses, especially medical bills or home repairs.

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Bottom line

December often feels packed, but it's one of the most useful months for slowing down and taking stock of your finances before the new year begins. Reviewing Medicare choices, checking holiday spending, confirming RMDs, and thinking ahead to 2026 Social Security changes could help you start January with fewer loose ends.

One small but often overlooked task is reviewing automatic subscriptions or services you barely used in 2025, like streaming platforms, club memberships, or recurring charges, that quietly renew in December. A quick audit now could help you avoid wasting money in retirement as prices adjust in the new year.

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