13 Biggest Money Stressors for People in Their 60s (And How To Fix Them)

Entering your 60s often brings a mix of anticipation and anxiety, especially when it comes to financial planning.

At this stage, managing your retirement plan can feel daunting, particularly if unexpected expenses or market volatility threaten your financial security.

The good news? Understanding these challenges is the first step to overcoming them. Here are 13 common money problems for people in their 60s, and strategies to address them.

Many people in their 60s worry they haven’t saved enough to fund their retirement years. If this resonates with you, consider taking additional part-time work that can boost your bank account. Or, you might weigh the option of delaying retirement.

Additionally, revisit your budget to minimize unnecessary expenses and maximize savings during your final working years. Exploring catch-up contributions to your 401(k) or IRA can also help bolster your retirement fund quickly.

It is common to reduce investment risk as you reach your 60s. While this can be sensible, being overly cautious can hinder growth.

Maintaining some exposure to growth-oriented investments such as equities can help your portfolio outpace inflation so it supports long-term goals. Consult a financial advisor to find a balance between risk and security that aligns with your timeline and needs.

Relying too heavily on a single type of investment can make your portfolio vulnerable to market swings. Diversifying across asset classes — stocks, bonds, real estate, and cash — can provide stability and mitigate losses during market downturns.

Don’t forget to diversify within asset classes, such as purchasing a wide variety of stocks through a mutual fund or exchange-traded fund or buying bonds of varying durations.

It is inevitable that the stock market will experience several bear markets in the coming decades. Unfortunately, it’s impossible to predict when these downturns will strike.

If this reality makes you nervous, consider adjusting your portfolio to include more conservative investments as you near retirement. Setting aside a few years’ worth of living expenses in a high-yield savings account can also provide a buffer against market volatility.

Additionally, rebalancing your portfolio regularly ensures your asset allocation will remain aligned with your risk tolerance and goals.

Deciding when to take Social Security is challenging. While filing for benefits early provides immediate income, delaying benefits until your full retirement age (FRA) — which is now 67 for most folks — can increase your monthly payments significantly.

Weigh the pros and cons of taking Social Security either early or later. The right decision for you will be based on your health, financial needs, and other factors.

Rising health care costs are a top concern for retirees. Make sure you understand Medicare options and consider supplemental insurance to help with gaps in coverage.

Building a healthy balance in a health savings account (HSA) before retirement or setting aside funds specifically for health care costs can help you prepare for medical expenses.

With long-term care costs soaring, planning ahead is essential. Explore options like long-term care insurance to be sure you’re covered.

Additionally, developing the right aging-in-place strategy may help delay or even prevent the need to move into an assisted-living facility.

Maintaining a large home may no longer suit your needs — or your budget. Downsizing can reduce housing costs and free up equity for retirement savings.

Selling or renting out unused spaces in your home could also generate additional income without requiring a move.

Emergencies don’t end in retirement, so it’s crucial to maintain a pool of money that you earmark specifically for these costs. Aim to have at least three to six months’ worth of living expenses in a high-yield savings account.

If building an emergency fund feels overwhelming, start small and contribute regularly. Cutting nonessential expenses temporarily can help accelerate your efforts to build emergency savings.

Outliving your savings is a major concern for retirees. To avoid this, create a withdrawal strategy that takes all your income sources — such as Social Security, pensions, and investments — into consideration.

The 4% rule — spending no more than 4% of your portfolio annually — is a good starting point, but adjust based on market conditions and personal needs.

Without an estate plan, your assets might not be distributed according to your wishes. Work with an attorney to draft or update your will, and establish a power of attorney. Consider setting up trusts for tax efficiency.

Reviewing beneficiary designations regularly ensures your plan reflects current circumstances. Communicating your wishes to your family now can help prevent conflicts after you die.

Inflation erodes purchasing power over time, making it a silent threat to retirees. Protect your savings by investing in assets that can keep pace with inflation, such as real estate or Treasury Inflation-Protected Securities (TIPS).

Adjusting your budget periodically can also help you adapt to rising costs. Exploring part-time work or freelance opportunities can provide an additional income buffer against inflation.

Carrying debt into retirement can drain your resources. Prioritize efforts to get out of debt, such as paying down credit card balances. This is much easier to do while you are still earning an income.

Refinancing or consolidating loans might also help lower monthly payments and free up cash. Creating a detailed repayment plan with a timeline can help you stay on track to becoming debt-free.

Managing money in your 60s can feel overwhelming, but understanding the challenges and implementing solutions can lead to a stress-free retirement.

From rethinking your investment strategy to preparing for health care costs and emergencies, small adjustments can make a significant impact on your financial security.

Taking proactive steps now can help you face the future with confidence and peace of mind.