Retiring in 2027? 3 Essential Financial Moves to Make

Key Points Make sure you have a well-thought-out budget. Figure out when you'll claim Social Security. Stress-test your income plan to ensure it holds up. The $23,760 Social Security bonus most retirees completely overlook › If you're retiring at any point in 2027, now's the time to get serious about your financial plans. Even if your retirement date is closer to December of next year, the end of your career is still right around the corner. And it's important to go into that stage of life feeling confident and prepared. Here are three essential moves to make ahead of a 2027 retirement that could help ensure that you've covering all of your bases. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Image source: Getty Images. 1. Create a comprehensive budget A lot of people assume their expenses will drop in retirement. Yours may decline modestly if you have paid off your mortgage and won't have a daily commute to cover. But you might also find yourself spending more on healthcare premiums once you enroll in Medicare or allocating a lot of money to hobbies and travel. That's why it's crucial to create a detailed budget so you can see exactly what your annual spending needs come to. That budget should include everything from your property tax bill to your auto insurance costs to the $8 or $9 purchases you make from time to time. It's also important that your budget leave room for unplanned expenses. Just because you're retired doesn't mean your car or home won't need repairs. Or, you might have to replace a cellphone after a period of time or get a new appliance. Build these costs into your spending plan so you can handle unwanted surprises. 2. Figure out a Social Security filing strategy If you have a large amount of retirement savings , Social Security may not be such a big part of your senior income. If your nest egg is more modest, you may rely more heavily on Social Security to cover your costs. Either way, it's important to figure out how much Social Security you can expect. And that hinges heavily on your filing age. The earliest you can sign up for Social Security benefits is age 62. But if you want your benefits without a reduction, you will have to wait until full retirement age arrives to file. Full retirement age is 67 for anyone born in 1960 or after. You can also delay your Social Security benefits past full retirement age for boosted checks. Each year you wait gives your benefits a permanent 8% increase, up until age 70. If you're inclined to think you will live a long life and you're worried about eventually depleting your IRA or 401(k), a delayed Social Security claim could offer more protection. 3. Stress-test your income plan against inflation and a stock market crash You might map out a solid spending and income plan only to have circumstances beyond your control upend it. It's important to plan for those events and make sure your numbers hold up. One perpetual threat to retirees is inflation. Over time, costs in general tend to rise, eroding your savings and spending power. The good news is that Social Security has built-in inflation projection. Benefits are eligible for a cost-of-living adjustment each year that's tied to inflation directly. You can also do your part to protect your savings from inflation by making sure you have a solid stock allocation. A stock market crash is another important thing to plan for. If the market tanks at a time when you're tapping your portfolio for income, you risk locking in permanent losses. So a good plan is to have a cash cushion that lets you cover one to three years' worth of living costs without having to liquidate portfolio assets at a bad time. Reducing spending in a down market also helps, so you may want to create a worst-case scenario budget that's different from your main one. That secondary budget can represent a pared-down lifestyle, which you might need to adopt temporarily if there's a prolonged market slump and your cash is dwindling. The more you're able to prepare for retirement, the more confident you might feel about ending your career. Tackle the moves above so that by the time you're ready to clear out your desk, you won't have lingering concerns to worry about. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more ... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. View the "Social Security secrets" » The Motley Fool has a disclosure policy .

If you're retiring at any point in 2027, now's the time to get serious about your financial plans. Even if your retirement date is closer to December of next year, the end of your career is still right around the corner. And it's important to go into that stage of life feeling confident and prepared.

Here are three essential moves to make ahead of a 2027 retirement that could help ensure that you've covering all of your bases.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

A lot of people assume their expenses will drop in retirement. Yours may decline modestly if you have paid off your mortgage and won't have a daily commute to cover. But you might also find yourself spending more on healthcare premiums once you enroll in Medicare or allocating a lot of money to hobbies and travel.

That's why it's crucial to create a detailed budget so you can see exactly what your annual spending needs come to. That budget should include everything from your property tax bill to your auto insurance costs to the $8 or $9 purchases you make from time to time.

It's also important that your budget leave room for unplanned expenses. Just because you're retired doesn't mean your car or home won't need repairs. Or, you might have to replace a cellphone after a period of time or get a new appliance. Build these costs into your spending plan so you can handle unwanted surprises.

If you have a large amount of retirement savings , Social Security may not be such a big part of your senior income. If your nest egg is more modest, you may rely more heavily on Social Security to cover your costs.