Preparing to retire in 2025? Make these 3 smart moves now

While many Americans plan to retire at age 65, the reality is that the end of their working career often comes much sooner. Despite conventional wisdom, the average retirement age in the United States is actually 62, according to a recent report. In fact, almost six in 10 retirees stepped away from the workforce earlier than anticipated, according to new research from the Transamerica Center for Retirement Studies. That early departure date was often due to medical issues that limited workers' ability to continue in their roles. 

Whether you find yourself in a similar situation – or simply plan to retire as soon as you hit the traditional age of 65 in 2025 – it's never too early to start thinking about your retirement plans. And for those who are anticipating an end to their working days next year, it's critical to get your finances in order now, especially without the economic support a full-time job can provide. Below, we'll break down three of the many smart moves those preparing to retire in 2025 should consider making now.

Start by exploring your possible long-term care insurance protections here now.

3 smart moves to make now if you're planning on a 2025 retirement

While planning for retirement can be a complicated process in which a multitude of considerations should be made, soon-to-be retirees should strongly consider making these three moves now:

Review your long-term care plans

Are you planning to spend your golden years at home alone or, eventually, with an in-home caretaker? What about potential nursing homes or assisted living facilities? All of these options will come with a price tag that will undoubtedly rise in the years to come. By opening a long-term care insurance policy now, however, when you're younger and healthier, you'll potentially pay a lower premium for more robust coverage. Waiting could be a costly mistake. And with the potential for long-term care providers to pay the costs of family members and friends as caretakers, this unique insurance option can help you age in the comfort of your own home, too.

Start by getting a free long-term care insurance price quote here.

Consider adding a Medicare supplement

Typically, Medicare is available for adults 65 and older. But it would be a mistake to assume that it will provide the coverage you need or are accustomed to having via your current employer. There may be some costly gaps in coverage that can only be covered via a "Medigap" or Medicare supplemental insurance policy. This unique insurance type can help cover costs related to deductibles, co-payments and more that you otherwise would have had to have paid directly on your own. Medicare supplemental insurance may not be beneficial for everyone (you should weigh the costs of a plan versus what you'll need to pay on your own without one). But, for many retirees and those planning to leave the workforce soon, a supplement can provide critical protection.

Learn more about your Medicare supplemental insurance options online today.

Reconsider your emergency fund locations

It's always important to have an emergency fund but especially so when you're retired. That said, where you store these funds is almost as important as how much you have in them. With the average savings account interest rate under 0.50% right now, if you have your money there you're losing out on significant interest-earning potential. Instead, consider moving it to a high-yield savings account which has all the features of a traditional account but with an interest rate over 4% or higher now. By moving your emergency fund into this account you can boost your funds with no risk.

See what high-yield savings account interest rate is available to you now.

The bottom line

If 2024 will be your final full year in the workforce, then it behooves you to start making financial preparations right now. By considering your long-term care and Medicare needs today – and by reviewing your emergency fund locations before 2025 – you can improve your chances of financial success and security both in the new year and in the many retirement years to come.