12 Retirement Moves to Make Before the Year Ends

As 2025 draws to a close, it’s clear the year delivered a mixed bag. It was neither the breakout triumph many hoped for nor the economic collapse many feared. A January 2025 Gallup poll showed that 41% predicted things would get better, 24% braced for the worse, and 29% expected more of the same.

Hindsight shows that inflation cooled a bit, markets rallied late, and, for the most part, jobs held steady. But, healthcare and housing costs stayed stubbornly high. If you’re among the millions still stressed about money (and 70% of us are, per Northwestern Mutual), the good news is that there's still time to cash in on these 12 retirement moves to end 2025 stronger than you started before the ball drops.

1. Take your Social Security 

In 2025, almost 69 million Americans received a Social Security check every month. Of that number, 12% of men and 15% of women relied on social security for 90% or more of their income. That’s why it still pays — even this late in the year — to be strategic about when to claim your first check.

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If you’ve worked long enough to earn 40 credits, one credit equaling $1,730 in earnings, with a maximum of four credits earned each year, you can apply for Social Security as early as 62. However, delaying your Social Security benefit from age 62 to 70 can boost your payout by up to 8% yearly. That alone can result in a 76-77% higher benefit at age 70.

One of the most overlooked benefits of delaying Social Security is that you can change your mind at any time, per the Journal of Accountancy. Delaying Social Security is not a one-time decision, while claiming your benefit is, of course, unless you want to pay back any benefits you've already received. In fact, once you hit your full retirement age, you can elect to receive up to six months' retroactive benefits as a lump sum. This can help alleviate concerns if a medical emergency arises or you encounter other urgent situations requiring immediate access to cash.

Another strategy, the 62/70 split, which works incredibly well for married couples, can also increase your check beyond delaying your benefit. In this case, the spouse earning the lower wage starts receiving benefits at age 62, while the higher-earning spouse delays receiving benefits until age 70. In turn, the higher earner receives a spousal benefit while waiting, increasing both their own and the potential survivor benefits for the other spouse.

To claim the full benefit you’ve earned based on your work history, you must wait until your full retirement age (FRA). Your FRA is based on your birth year. If you were born in 1958, your full retirement age will be 66 and 8 months. If you were born after 1960, your FRA is 67.

Here is when you will reach your FRA by birth year:

If you claim Social Security before your FRA, you could lose:

• 5/9 of 1% per month for up to 36 months of early claiming
• 5/12 of 1% per month for every additional month of early claiming beyond 36 months

You can also delay claiming Social Security beyond your FRA. In that case, for every year you delay claiming past your FRA (up to age 70), your benefit grows by 8% per year, which is approximately 2/3 of 1% per month. This means that delaying your benefits can significantly boost your monthly payment when you eventually start receiving them. This ends when you qualify for your maximum benefit at 70. However, if you have a serious health issue or you can’t afford to wait to earn Social Security, you may want to apply early.

Once you know how much you’ll earn in Social Security benefits, you can figure out how much income you’ll need from other sources to cover your expenses in retirement.

In August 2025, the average monthly Social Security check for retired workers was $2,008.31. In September 2025, the average Social Security monthly benefit for retired workers dipped slightly to approximately $1,922, according to Bankrate.

To see how your state measures up, check out: The Average Social Security Check in Every State.

2. Bump up your savings

CDs, high-yield savings accounts, and money market accounts are all viable options if you're looking to bump up your savings before year-end. Recent moves by the Federal Reserve could be a factor in any decisions.

The Federal Reserve cut the federal funds rate by 0.25 percentage points at its most recent meeting in October, bringing the target range for the key overnight bank lending rate to 3.75% — 4.00%. The fed funds rate directly influences consumer savings products like high-yield savings accounts and CDs. It was also the second cut in 2025, which was aimed at supporting a softening labor market while keeping inflation in check.

To maintain profitability, lower Fed rates typically prompt banks to adjust their yields on deposits, often leading to a small decrease in the interest you can earn on savings. However, as of November 2025, the best high-yield savings accounts still hover between 4.21% and 5.00% APY, while the best CDs remain competitive at 4.25% to 5.11% APY.

Bottom line: Act quickly before the year ends on CDs if you're looking for stability, but shop online banks for the best ongoing savings yields.

Another option is opening a money market account (MMA). Both savings and money market accounts earn interest, but MMAs typically offer debit cards and the ability to write a few monthly checks, while savings accounts don’t. However, MMAs can limit the number of withdrawals per month, so if you go over that limit, you may be charged a fee.

Like high-yield savings accounts, some MMAs are offering rates over 4%, with the best options hitting APYs as high as 4.4%. That means more money in your pocket to spend in your glory years. Even so, expect a gradual dip as the Fed's recent 0.25% cut (to 3.75% — 4.00%) filters through, potentially pulling yields toward 3.75% — 4.00% by year-end if another reduction comes in December.

3. Revisit your retirement accounts

The Internal Revenue Service set the 2025 contribution limits for 401(k) and IRA accounts, as well as other retirement plans. Here's a look at the 2025 (and 2026) numbers.

401(k)s

The amount you can contribute to your 401(k) plan in 2025 is $23,500 (that limit is estimated to rise to $24,500 in 2026). The catch-up contribution limit that generally applies to employees aged 50 and over is $7,500 for 2025 and is expected to increase to $8,000 for 2026. That means if you are 50 and older, you still have time to contribute up to $31,000 in 2025 (up to an estimated $32,500 in 2026).

Also effective for the rest of the 2025 tax year, active 401(k) plan participants aged 60 through 63 can contribute over $10,000 or 150% of the 2024 catch-up contribution limit (indexed for inflation) in a super catch-up as a result of SECURE 2.0 legislation. For 2025, the maximum catch-up contribution you can make is $11,250, and for 2026, it is expected to rise to $12,000.

In 2025, the total limit for 401(k) contributions for anyone aged 60 to 63 is $34,750, and in 2026, that is expected to increase to $36,500. Those numbers include the base contribution limit ($23,500 in 2025 or an estimated $24,500 in 2026) plus the applicable catch-up contribution of $11,250 or $12,000. If you’re an account holder, you can take advantage of this additional catch-up contribution before the end of the year.

Read: New IRS Start Date for Mandatory Roth Catch-Up Contributions

IRAs

The base IRA contribution limit remained unchanged for 2025 at $7,000, with the IRA catch‑up contribution limit for people 50 and over at $1,000. However, the income ranges for determining eligibility increased:

• For single taxpayers covered by a workplace retirement plan, the phase-out range for IRA deductions is $79,000 to $89,000.
• For married couples filing jointly, and if you have a workplace retirement plan that covers the spouse making the IRA contribution, the phase-out range is $126,000 to $146,000.
• The income phase-out range for taxpayers contributing to a Roth IRA is $236,000 to $246,000 for married couples filing jointly $150,000 to $165,000 for singles and heads of household.
• The limitation regarding SIMPLE retirement accounts increased from $16,000 to $16,500 in 2025.

Contribution limits on a variety of other retirement accounts also rose in 2025, including Roth IRAs, SEP IRAs, Solo IRAs and others. Details on these and other retirement-related cost-of-living adjustments for 2025 are still available in Notice 2024-80 PDF, available on IRS.gov.

4. Get a handle on taxes before year-end

For 2025, the IRS made some changes and adjustments to standard deductions, tax brackets, earned income tax credits and more. Although some of these changes only applied to your own situation, if you plan to make a change, like getting married or divorced by year-end, it pays to understand how these changes may impact your finances.

Earned Income Tax Credit: While the earned income tax credit is a refundable credit for low- to middle-income workers, it can also apply to retirees. For the 2024 tax year — taxes filed in 2025 — the earned income tax credit spans from a max of $632 to $7,830, depending on income, tax filing status and the number of children you have. For qualifying taxpayers with three or more children, the tax year 2025 maximum Earned Income Tax Credit is $8,046.

Estate tax credits: Unless you hit a certain exemption amount before the end of the year, you won't have to worry about the federal estate tax. That amount is $13.99 million (up from $13.6 million last year) for people who pass away in 2025. The exemption for married couples is $27.98 million (up from $27.22 million last year).

Federal estate tax rate: Because the exemption is so high for 2025, only a small percentage of estates will be subject to federal estate tax. However, estates valued over $1 million ($14,990,000 or $28,980,000 combined for married couples) are taxed at 40%.

More information regarding all tax changes that were implemented in 2025 can be found on the IRS website.

5. There's still time to check out a health savings account

Health savings accounts, or HSAs, are individually owned tax-advantaged accounts that let you save pre-tax dollars for future qualified medical expenses. They are paired with an HSA-eligible health plan. An HSA helps you save on copays, prescriptions, eyeglasses, dental care, x-rays and a lot more, and can be used to pay for both current medical expenses and expenses you may have in retirement.

It may be possible to enroll in an HSA-eligible plan through your health insurance company, your current health provider or your bank. You can also get more information at HealthCare.gov.

For 2025 (self-only coverage), you must have an annual deductible of at least $2,850 but not more than $4,300 on your health savings account. Plus, the maximum out-of-pocket expense amount increased to $5,700 in from $5,550 in 2024. For family coverage, the annual deductible is at least $5,700. However, this year the deductible can be up to $8,550. Also for family coverage, the out-of-pocket expense limit is $10,500.

If you make a withdrawal for a non-medical expense, it will be treated very similarly to one taken in an individual retirement account (IRA). An HSA may provide tax advantages if taken after retirement age, but will incur penalties if taken earlier.

6. Give money to your children

The custom of exchanging gifts during the holiday season goes back to the Victorian age and ancient Roman merrymaking. However, 2025 can still be the year to give your children money through both direct cash payments and sophisticated trusts outside of the holidays. Gifting can be an excellent move to make this year and as an addition to your estate planning goals.

Just think of the personal satisfaction you'll get knowing you helped your kids buy a home or your grandkids go to college. But before gifting money or other assets, make sure you can pay for any expenses you may still incur this year and that your needs are taken care of first. Know the potential tax consequences, too.

This year, the annual gift tax exclusion shot to $19,000 per recipient, up from $18,000 in 2024. Married couples can double this amount to $38,000 (up from $36,000 in 2024) per recipient. In addition, the lifetime estate and gift tax exemption increased to $13.99 million per recipient.

Just make sure to make any annual gifts by December 31 to take advantage of the gift tax exclusion, including how to determine what you want to gift and which assets you will use.

7. Take your RMD if required

Make sure you know when you are required to take your required minimum distribution (RMD) from your retirement accounts. An RMD is the amount of money you must withdraw each year from your employer-sponsored retirement plans, like 401(k)s and certain IRAs.

You must take your RMD after you turn 73 years old and every year after that or face a tax penalty. RMDs do not apply to Roth accounts until after the account owner dies.

8. Update your will and other legal docs

Even if it's been 30 years since you updated your estate plan, changes to your family, taxes, and retirement accounts may mean it’s time to take another look and get it sorted out before the end of the year.

For instance, the amount you can leave your heirs without paying federal tax is $13,990,000 in 2025. If you’ve moved to a new state, the estate tax exemption for 2025 may be higher or lower than that amount.

Life happens. Maybe you got divorced or married, or your children are now adults. Maybe it’s as simple as your wishes changing over time, or you want to designate someone to manage your healthcare directives or finances. Whatever your reasons for updating your estate plan, doing so now gives you the satisfaction of knowing your wishes will be carried out upon your passing.

9. Rethink services and subscriptions

Many people take advantage of services, like subscriptions that offer a few free months before charging full price, or credit cards that charge no interest on purchases if paid within a certain amount of time.

Unfortunately, it's easy to lose sight of these perks. Before the new year, go over all the services you are using, such as streaming services, cable TV, magazine subscriptions and even coffee clubs. Do you still use these services? If not, cancel them now.

If you applied for a credit card with an introductory 0% interest rate on all your purchases for six months, revisit your agreement and make sure the six-month promotion hasn't expired or will expire before the end of the year. If it has, you will pay a much higher interest rate, possibly 28.75% or higher, on all future purchases. Plus, if you make a late payment during the promotional period, you might also get slapped with a penalty APR. Paying off all purchases within the promotional period can help you avoid ending up in more debt than you began with.

10. Up your charitable giving

If you are in a charitable mood, there are many tax benefits to take advantage of this year. But, to claim a tax-deductible donation on your taxes, you must itemize, and you must donate to an IRS-recognized charity as defined by section 501(c)(3) of the Internal Revenue Code before the end of the year.

As a rule, the amount of charitable cash contributions you can deduct as an itemized deduction on Schedule A is limited to a percentage, up to 60% of your adjusted gross income (AGI). In 2025, the percentage limit for charitable cash donations to public charities is 60%. Keep in mind that you may be limited to a percentage less than 60%, depending on the organization and type of contribution.

For any cash, checks or other monetary gifts you make, no matter the amount, you must always keep a record — bank statement or written record — of your contributions. This must contain the name of the organization or charity, the amount, and the date you donated. This is good to keep in mind for next year, also.

If you donate property, like your home, to a qualified organization, you can generally deduct the property's fair market value. Looking forward, your contributions must be made before the end of the year if you want the deduction to count for 2026.

As mentioned in No. 6, "Give Money to Your Children," the Internal Revenue Service also allows owners of IRAs who are 70-½ or older to transfer up to $100,000 to a qualified charity tax-free each year. These transfers are known as qualified charitable distributions or QCDs. What’s more, for anyone who is at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.

11. Explore a phased retirement

If you're not quite ready for retirement and want to continue working, try a phased retirement, where you work reduced hours while still enjoying activities you want to do in retirement. According to a survey, Retirement Outlook of the American Middle Class, by the Transamerica Center for Retirement Studies, more than half (52%) of pre-retirees wish to continue working in some way after they retire. Besides the obvious benefit of earning a little extra cash, you will also have free time to pursue your interests and care for your health.

Besides, a phased retirement can give you a purpose and keep you active, both physically and mentally. You may even continue to benefit from a health insurance plan from your employer. Work part-time, seasonally, perform a temporary project as a contractor, or even start your own business. The possibilities are endless now and in the new year.

12. Have a backup plan

If you're in a state of financial disarray, you may want to think about making a plan to get things back on track, sooner rather than later.

One way is to look at your spending habits or even delay certain purchases this year. In some cases, you may want to take on a side hustle for a little while to put some extra cash in savings. If you’re in debt, make a plan early in the year to pay down or pay off your debt. The money you save each month in interest alone will go a long way in making your retirement years much happier. Barring a catastrophe, the earlier you take control of your finances, the easier these problems are to control and remedy.

You can still make retirement moves

Many people procrastinate (up to 20% of all adults) when it comes to retirement moves to make. It's just human nature. If you're one of them, reach out to a financial adviser who can help you manage your retirement accounts and other financial matters before the year is over. Don’t short-change yourself, especially considering the many changes we may see in 2026.

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