7 Smart Money Moves Every Boomer Should Make in Their 60s to Retire with Confidence

Your 60s are a crucial financial crossroads. Whether you’re still working full-time, transitioning into retirement, or fully embracing the freedom of your golden years, this is a time to be strategic with your money. After decades of earning, saving, and supporting others, now is the moment to ensure your financial house is in order so you can enjoy the retirement you’ve envisioned.

Many baby boomers in the U.S. are living longer, staying active, and seeking fulfillment in retirement—but also facing rising healthcare costs, inflation, and uncertainty about Social Security. That’s why making smart money moves now can pay off in peace of mind later.

Here are 7 practical and smart financial strategies every boomer should consider in their 60s to help secure a stable, comfortable, and confident retirement.

1. Nail Down Your Retirement Budget—And Test Drive It

Before diving headfirst into retirement, it’s critical to know whether your finances are ready to keep up with your lifestyle. Start by estimating your monthly expenses post-retirement. Consider what might go down (like commuting or work wardrobe costs) and what might go up (like healthcare or travel). Think about essentials—housing, groceries, insurance—and discretionary spending like hobbies, dining out, or grandkid spoiling.

Once you have a rough idea, test drive your retirement budget. Try living on that amount for a few months while you still have regular income. This not only highlights any problem areas but also gives you confidence that your plan is workable. Better to find out now than after the paycheck stops coming.

And don’t forget to factor in inflation. What costs $3,000 a month today might cost over $4,000 in 15 years. Planning with inflation in mind keeps your financial future on solid ground.

2. Delay Social Security—If You Can Afford To

If you’re eligible for Social Security, the earliest you can claim it is age 62. But here’s the kicker—if you wait until your full retirement age (which is between 66 and 67, depending on your birth year), you’ll receive 100% of your benefit. Even better, for every year you delay past full retirement age (up to age 70), your benefits increase by about 8% per year.

Let’s say your full benefit is $2,000/month at age 67. If you wait until 70, you’d receive about $2,480/month. That’s nearly $6,000 more per year—for life! If you’re in good health, have enough saved, or have other income streams, waiting can significantly boost your long-term financial security.

And remember, higher Social Security benefits can also help cushion against market downturns or longer-than-expected lifespans. Consider it a guaranteed “raise” from the government.

3. Downsize Your Home (and Your Headaches)

Let’s face it—after the kids are grown and gone, you might not need four bedrooms and a giant backyard. In fact, keeping up with a large home can be both financially and physically draining. Downsizing isn’t just about saving money—it’s about simplifying life.

Selling your larger family home and moving into a smaller house, condo, or active senior community can significantly reduce your monthly costs—think mortgage, taxes, utilities, maintenance, and repairs. It may also free up home equity you can use to boost your retirement nest egg or create an emergency fund.

More importantly, it can improve your quality of life. Less cleaning. Less lawn work. More time and energy to do what you love—like traveling, volunteering, or picking up a new hobby. And if you plan to age in place, a single-story, low-maintenance home can be a smart and safe long-term move.

4. Get Strategic With Required Minimum Distributions (RMDs)

Once you hit age 73, the IRS requires you to start taking Required Minimum Distributions (RMDs) from most tax-deferred retirement accounts, including traditional IRAs and 401(k)s. These withdrawals are taxed as regular income—and the amounts can be surprisingly large, especially if your investments have grown over time.

The trick? Don’t wait until you’re required to withdraw. In your early 60s, you can strategically take smaller withdrawals or even convert some of your traditional IRA into a Roth IRA. Roth conversions do create a tax bill now, but the long-term benefit is withdrawals that are tax-free and not subject to RMDs.

Another smart move is coordinating RMDs with your tax bracket. Taking money out in years when your income is lower can help you minimize your tax liability. It’s all about proactive planning—working with a tax advisor or financial planner can help you fine-tune your strategy and avoid surprises.

5. Reevaluate Your Investment Risk

You may not be skydiving anymore (or maybe you are—go you!), but your portfolio shouldn’t be taking unnecessary risks either. In your 60s, it’s time to evaluate how your investments align with your retirement timeline and risk tolerance.

As you near or enter retirement, a market downturn could hurt more than it did in your 40s because you have less time to recover. That’s why most experts recommend gradually shifting to more conservative investments, like bonds, dividend-paying stocks, or income-focused mutual funds. This doesn’t mean you need to eliminate stocks entirely—but your mix should reflect your current goals, not your younger self’s ambitions.

The goal is to strike a balance between growth and security. You still want your money to grow enough to outpace inflation, but you also want it to be there when you need it. A diversified portfolio tailored to your age and risk comfort can help provide both.

6. Tackle Debt Before It Tackles You

Debt and retirement don’t mix well. Interest payments can gobble up a big chunk of your fixed income, leaving less for essentials—and fun. Credit card balances, car loans, and even lingering mortgages can weigh down your financial freedom in retirement.

Use your 60s as a time to get aggressive about paying down debt. Start with high-interest credit cards (which often exceed 20% interest) and move down the list. If you can, avoid taking on any new debt unless absolutely necessary. Refinancing or consolidating can sometimes lower your payments or reduce interest costs.

And don’t overlook emotional debt—like co-signing for adult children or loaning large sums to family. It’s natural to want to help, but your retirement stability must come first. You’ve worked hard to build this next chapter. Don’t let lingering liabilities write the story for you.

7. Create (or Update) Your Estate Plan

Estate planning may not be glamorous, but it’s one of the most important money moves you can make in your 60s. Without a proper plan in place, your assets could be tied up in probate or distributed in ways you didn’t intend.

At a minimum, make sure you have:

• A will that outlines how you want your assets distributed

• A power of attorney to handle financial matters if you become incapacitated

• A healthcare directive (or living will) to express your medical wishes

Also, double-check that your beneficiary designations are current on retirement accounts, insurance policies, and bank accounts. These designations override your will, so keeping them up to date is crucial.

Estate planning isn’t just about money—it’s about protecting your legacy and making things easier for your loved ones. Consider working with an estate attorney to ensure your plan is complete and legally sound.

Final Thoughts

Your 60s are not a financial finish line—they’re a new beginning. Whether you’re planning your last working years, actively retiring, or already enjoying life on your own terms, the money moves you make now can significantly impact your freedom and comfort down the road.

By budgeting wisely, delaying benefits, reducing risk, and planning ahead, you’re taking real steps toward a more secure and rewarding future. Don’t worry if you’re not doing everything perfectly—every small step forward counts.

So go ahead: streamline your finances, plan your next adventure, and enjoy this decade of possibility. You’ve earned it.