Retirement Retirement Planning

4 Financial Moves All Retirees Need to Make Before the End of 2025

4 key money moves retirees should make before 2025 comes to a close.

By David Maina, CPA , Edited by Laura Hohenstein

Updated Dec. 15, 2025

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The final weeks of 2025 are slipping by, and they matter more than many retirees realize. A handful of smart, targeted moves right now can tighten your plans for next year and protect the income you count on for a stress-free retirement.

Most retirees don't need a full financial overhaul, but they do need to make a few focused moves before the calendar flips. In this guide, you'll see the four tasks that deserve your attention now.

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Review and rebalance your portfolio

A year-end portfolio check is one of the smartest financial moves you can make. Markets rarely move evenly, and by December, your investments may look very different from the mix you intended.

If stocks had a strong year, they may now dominate your portfolio, leaving you exposed to more risk than you want in retirement.

Rebalancing your portfolio can help fix that. Compare your current holdings to your target allocation, then trim what has grown too large. If stocks now take up too much space, you can shift some of that money into bonds or other income-focused assets.

Markets can swing a lot in a year. Rebalancing can help you lock in gains from big winners and move money into safer assets, so you're not caught off-guard by a sudden market drop.

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Take your RMDs on time to avoid penalties

If you hold money in traditional IRAs, 401(k)s, or similar tax-deferred accounts, you must withdraw a required minimum distribution (RMD) each year once you reach 73.

If you miss the withdrawal deadlines, the IRS can levy a 25% penalty on the amount you failed to withdraw. That charge can drop to 10% if you fix the mistake within two years, but it's still a costly hit.

To stay clear of penalties, log into each retirement account and confirm whether any RMDs remain. Custodians often calculate the number for you, but it's your responsibility to make sure the withdrawal happens before year-end. If any withdrawals are still pending, take them before the deadline.

If you don't need the cash, consider using a Qualified Charitable Distribution (QCD). A QCD lets anyone age 70½ or older send up to $108,000 from an IRA directly to a charity in 2025. The amount satisfies your RMD but doesn't appear as taxable income.

For retirees who give regularly, it's a simple, tax-efficient way to meet the IRS requirement while supporting a cause you care about.

Create a 2026 budget around your COLA and Medicare changes

The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, giving your benefit a small lift in January. But Medicare will take a larger bite next year, and that reduces how much of the raise you actually keep. The standard Part B premium climbs from $185 to $202.90, a $17.90 monthly jump that comes straight out of your check.

You can use these numbers to update your budget now or log in to your Social Security account to see your actual 2026 numbers.

With that figure, review your monthly plan. You may have a little more room, or you may need to adjust if medical costs or other essentials have crept up.

If the math feels tight, look at options that add a little extra income. Some retirees pick up seasonal or part-time work. Others downsize, refinance, or tap into light consulting in the field they know best. Small moves can make a big difference when your COLA increase is modest, and Medicare costs continue to climb.

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Revisit your estate plan and beneficiary designations

Use the end of the year to make sure your estate plan still reflects your wishes. Many retirees create wills, trusts, and beneficiary forms once and never look back.

But life changes, like marriages, divorces, births, and deaths, can make old documents inaccurate. If a form is outdated, an ex-spouse or the wrong relative could end up inheriting money you never intended to leave them.

Start with every account that names a beneficiary, like IRAs, 401(k)s, life insurance, annuities, and even some bank accounts. Check both primary and contingent beneficiaries to confirm they're current.

Next, review your will, trust, and powers of attorney. If your family has grown, if a caretaker has changed, or if you want someone new to manage your affairs, update the documents now. Also, look at your medical directives and financial powers of attorney so your wishes are clear.

Year-end is a good time to do this. You get peace of mind going into 2026, and your family avoids confusion later.

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Bottom line

As the year wraps up, taking these steps can protect your income and help you avoid money mistakes in 2026.

It also helps to step back and see how your entire financial life fits together, from your savings, taxes, and healthcare costs to the goals you still want to fund. That broader check-in can help you find small gaps or new opportunities you might miss when you focus only on single tasks.

A short conversation with a trusted advisor, or even one afternoon spent organizing your statements, can set you up for a clearer and less stressful start to retirement in the new year.

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