Year-end retirement planning moves to consider now

With only a few months left in the year, this is a good moment to take another look at your financial plan. Whether you are still working and preparing for retirement or already enjoying retirement, the fall season is a useful time to make moves that may lower your tax bill and help you keep more of your money.

To get the most from your money, a certified financial planner looks at tax strategies, charitable giving, Social Security decisions and Medicare planning, according to CFP Board. It is also important to review how recent tax-code changes under the “One Big Beautiful Bill Act” affect your strategy as the new year gets closer.

Tax Planning Strategies

Tax planning can feel complicated, but it is one of the most effective ways to preserve more of your income. If retirement is ahead, take time to review your income sources, make the most of retirement account contributions and consider any recent tax-law changes. As the year ends, it is smart to confirm that you are using every deduction, credit and tax-advantaged savings option available.

For retirees, the approach is different. As year-end approaches, check which tax bracket you are in. Fidelity says many retirees land in a lower bracket early in retirement than they did while working, creating opportunities. For instance, staying within the 12% tax bracket may allow you to realize capital gains without tax in brokerage accounts, reset your cost basis, diversify appreciated stocks and ultimately keep more money.

Charitable Planning

Charitable giving can fit into both retirement preparation and retirement income planning. Many people want to support causes they care about, so it is worth considering how donations can be woven into your overall financial picture through donor-advised funds, appreciated securities or other tax-efficient approaches.

If you are already retired, you can still give in a tax-smart way. If required minimum distributions (RMDs) must be taken from retirement accounts, you have until the end of the year to decide how to handle them. Taking an IRA RMD as income means it will be taxed, but directing that distribution to a charity can keep it from counting as taxable income. If you planned to donate anyway, this strategy can support a favorite cause while reducing taxes.

Social Security

Choosing when to claim Social Security is one of the most important financial decisions many Americans will ever make, and the timing can have a major effect on benefits, according to the Consumer Financial Protection Bureau. The end of the year is a useful checkpoint for thinking through when to start benefits. If you keep working and claim early, your payments may be reduced depending on your income, which is why many people wait until they stop working.

After reaching full retirement age, benefits can be collected without reductions. Even so, waiting longer can increase monthly payments. If you think you filed too soon and it has been less than 12 months, you may be able to withdraw your application and restart later at a higher amount.

Senior Deduction

Under OBBBA, people age 65 and older qualify for an extra standard deduction, with income phaseout limits, according to the IRS 2025 fact sheet on working families tax cuts. The amount is $6,000 for single filers and $12,000 for married couples filing jointly. This deduction may help shape a withdrawal plan that maximizes savings. Try to avoid unnecessary taxable IRA withdrawals that could reduce or eliminate the benefit. If you need extra cash and are near the phaseout range, cash or brokerage accounts may be a better source. For example, if you are in the 22% federal tax bracket, every dollar of deduction lost costs 22 cents in added tax.

Small moves made before year-end can have a meaningful effect on your long-term retirement plan, so it is worth reviewing your financial strategy now.