After the holidays, it’s likely that retirement is the furthest thing from your mind — and yet, the new year is the perfect time to start planning.
No matter where you find yourself on the retirement-savings journey, there are certain money moves you should begin making immediately.
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GOBankingRates spoke with experts Shirley Mueller, finance expert and founder of VA Loans Texas and Max Avery, chief business development officer at Syndicately, to gather the below savvy strategies you should start in 2025, regardless of when you plan on retiring.
Assess Contributions and Catch Up
At the start of each year, Mueller said one of the smartest moves for retirement planning is reviewing and adjusting your retirement account contributions.
“Whether it’s a 401(k), IRA or both, ensuring you’re maximizing contributions or at least taking full advantage of employer matching, is a simple yet powerful way to build wealth over time,” she said.
For those aged 50 or older, she said the opportunity to make catch-up contributions is a key advantage that shouldn’t be overlooked.
“Many of my clients are surprised by how these additional contributions can significantly bolster their retirement savings over a decade or more,” Mueller added.
“You need to up your contributions at the start of a year, regardless of your planned retirement date,” Avery said.
He said this simple move can have a significant impact on your retirement savings and help you reach your goals faster.
“Let’s say you are currently contributing 5% of your salary to your retirement account,” he said. “By increasing it to 7%, you can potentially save thousands of dollars more by the time you retire.”
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Rebalance Investments and Review Goals
“January is the perfect time to rebalance your investment portfolio,” Mueller said. “Markets shift and your original asset allocation can stray from its intended balance, exposing you to more risk than you planned for or not enough.”
She observed that reviewing your portfolio ensures it aligns with your retirement timeline, risk tolerance and financial goals.
“I also encourage people to revisit their retirement plans holistically, whether it’s deciding when to claim Social Security, estimating healthcare costs or evaluating projected income streams,” she added. “These early-in-the-year adjustments provide clarity and help set the tone for smart financial decisions throughout the year.”
Reassess Your Risk Levels
“Reassess your risk levels every time you experience a major life event like marriage, having children or nearing retirement,” Avery said. “Your risk tolerance and financial goals can change over time and it’s crucial to adjust your investments accordingly.”
For example, he explained that as you near retirement age, it may be wise to shift towards more conservative investments to protect your savings.
“This is as important as regularly reviewing and adjusting your portfolio, especially during uncertain economic times,” Avery added.
Tax and Future-Proofing Strategies
Another critical step, according to Mueller, is addressing tax efficiency in retirement planning.
“Many people overlook how much taxes can impact their savings,” she explained. “Roth IRA conversions, for instance, can be a smart strategy to reduce tax burdens in retirement if tackled early in the year.”
She also advised clients to evaluate their emergency funds and insurance policies.
“These might not seem directly tied to retirement, but they’re essential safeguards against dipping into retirement accounts prematurely,” Mueller said. “Starting the year with these moves ensures you’re on track for a financially secure retirement while staying prepared for unexpected life events.”
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This article originally appeared on GOBankingRates.com: I’m a Retirement Planner: 4 Moves To Make as Soon as Possible in the New Year
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