Nearing retirement

When retirement is coming into view, it's critical to assess where you stand today and maximize your savings & investing opportunities.

Get prepared

Retirement comes with a lot of decisions, which is why it requires careful planning and preparation.
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Preparing for the 3 stages of retirement

Your priorities, income needs and spending will likely change as you move through retirement.
Click through these steps to learn more about what you might expect in each stage. For insights on how to prepare, read the article.
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Exploring

In the first stage of retirement, you might spend more time traveling, volunteer, move to a new location or work part time.

Don't forget

By making charitable giving a part of your financial plan, can help you maximize your impact on the causes and organizations you care most about, keep your finances on track and potentially realize additional tax savings in the long run. Learn more about charitable giving
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Calculate future expenses

Try to create a ballpark annual estimate based on what you live on now and how your expenses might change when you retire.
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Plan for future costs

Some expenses, such as healthcare, may be higher later in life, while others, such as commuting or clothing costs, may decline. What each person will need varies widely, but there are certain expenses we can count on.
Click through to how costs may change as you move through retirement.
Chart shows how retirement costs may change as you age. From ages 50 to 64, food represents 12% of total spending, clothing is 3%, housing is 33%, entertainment is 5%, transportation is 16%, healthcare is 9%, insurance/pensions are 13%, charity and gifts are 4% and other is 5%. From ages 65 to 74, food represents 13% of total spending, clothing is 2%, housing is 36%, entertainment is 6%, transportation is 15%, healthcare is 12%, insurance/pensions are 7%, charity and gifts are 5% and other is 4%. From ages 75 and older, food represents 12% of total spending, clothing is 2%, housing is 37%, entertainment is 5%, transportation is 12%, healthcare is 16%, insurance/pensions are 3%, charity and gifts are 9% and other is 4%.
For illustrative purposes only
Based on cost estimates from:
U.S. Bureau of Labor Statistics, "Consumer Expenditure Surveys 2021," September 2022
U.S. Department of Health and Human Services, "How Much Care Will You Need?," accessed May 2023

Did you know?

You can track your spending and look for savings opportunities with the Bank of America Spending & Budgeting tool.
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Plan your income

Identify the income sources you can draw from to create a monthly "paycheck" for yourself.
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Social Security: Aiming for smarter payments

Retirement income can come from many different sources. While Social Security will provide only a portion of your retirement income, it's an important component and should be part of your retirement strategy.
The older you are when you file for Social Security benefits (until you reach age 70), the greater your annual payment for the rest of your life.
This chart shows how the annual benefit amount can change for a retiree who is eligible to receive $24,000 per year at the Full Retirement AgeFootnote * of 67.

Did you know?

You can connect with a Merrill advisor to get guidance on creating an actionable retirement plan that works for you. Schedule an appointment with a Merrill advisor.
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Review your estate plan

Having a plan and reviewing it over time helps protect your loved ones and ensures that your wishes are followed. If you haven't created a plan, don't worry, it's not too late.
Update your
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Protect your wealth and wishes

An estate plan describes your intentions so that others can know your wishes after your death, or if you are incapacitated. You may even need several types of documents to cover all of your bases. Birth, death and divorce and other life events can dramatically alter your intentions, which is why it's important to revisit your estate plan over time.
Reminder, the first and easiest step that can make a big difference in protecting your loved ones is to designate beneficiaries for your banking and investment accounts.
Click through the steps to learn more (you may want to consult with an attorney or tax advisor).
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Provide for dependents

Make sure you have at least a basic will that includes provisions for your dependents, such as naming guardians for minors, providing for children from a previous marriage, and specifically addressing the care and income of relatives with special needs.

Did you know?

For some people, the best approach may be to give during their lifetime rather than later. Learn more about giving an early inheritance

Managing through life's events

Throughout your life, you're going to experience important events — like getting married or divorced, having a baby, a job change — that will affect your finances. While some are planned, others are not. We're here to help you prepare for those critical times.
Family  topics
Getting married  topic Starting a family  topic Getting divorced  topic Losing a loved one  topic Receiving an inheritance  topic

Getting married

Getting married or moving in together can be the start of an exciting new adventure. These resources can help you get ready for this new phase in your life.
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Starting a family

The cost of raising a child continues to increase. Learn how to prepare financially and protect your growing family.
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Getting divorced

Receiving an inheritance can open up new possibilities. These tips can help you prepare to manage an inheritance or unexpected new wealth.
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Losing a loved one

The last thing anyone wants to prepare for is the loss of a loved one. But there are important decisions to make, and planning ahead can help make this time a little less stressful.
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Receiving an inheritance

Receiving an inheritance can open up new possibilities. These tips can help you prepare to manage an inheritance or unexpected new wealth.
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Your first job

Congratulations on reaching an important milestone. These resources can help you get your finances and working life off to a great start.

Changing jobs

A job transition means considering how you'll handle employer-sponsored benefits like retirement accounts, along with insurance and other perks.
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Job loss

While it may be tempting to reach for retirement assets after losing a job, look for other sources that won't have an impact on your long-term plans.
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Starting a business

Starting your own business can be exciting and challenging. Learn the basics of planning, preparing and launching your new endeavor.

Buying a home

Whether you're a first-time buyer or already own a home and are looking to refinance or make a move, there are a lot of financial considerations connected to homeownership. These resources can help.
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Buying a car

A new car could be one of the most expensive purchases you make. Before you commit to the first vehicle that catches your eye, think about how to plan to use and pay for it.

Saving for a large purchase (travel, etc.)

Achieving a shorter-term goal like taking a vacation or buying a car calls for a disciplined savings approach. These tips and resources can help you get started.
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Caregiving

If you're faced with taking on the responsibility of caring for an aging or ill loved one, these resources can help.
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Put your plans into action ... ready to get started?

Bank of America products

Explore Bank of America checking and savings accounts along with other banking products.
Learn more  about Bank of America products

Merrill investing accounts

Explore accounts for general investing, retirement, education expenses and more.
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Have questions?

Schedule an appointment to talk with a specialist.
Schedule an appointment  with Merrill

Learn about our other life stages

Early in your career  life stage information at Merrill Peak earning years life stage information at Merrill In retirement life stage information at Merrill
Investing involves risk including possible loss of principal. Past performance is no guarantee of future results.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Footnote 1 This material should be regarded as general information on healthcare considerations and is not intended to provide specific healthcare advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.

Footnote 
2 This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., ("Bank of America") and Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S" or "Merrill"), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
Footnote 
3 Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
Footnote 
4 You have choices about what to do with your 401(k) or other type of plan-sponsored accounts. Depending on your financial circumstances, needs, goals and employer plan terms, you may choose to roll over to an IRA or convert to a Roth IRA, roll over a 401(k) from a prior employer to a 401(k) at your new employer, take a distribution, or leave the account where it is. Each choice may offer different investments and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment (particularly with reference to employer stock), and provide different protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information visit our rollover page or call Merrill at 888.637.3343.
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Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
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