As retirement approaches, many Americans are unsure if they have saved enough. Rachel, 55, has roughly $400,000 in her retirement accounts and expects $1,800/month from Social Security. Experts suggest having $1-1.5 million saved or replacing 70-80% of pre-retirement income. A $400,000 portfolio may yield $16,000/year at a 4% withdrawal rate.

The ten years before retirement are crucial, known as the “retirement red zone.” Market downturns during this period can be devastating. It’s important to review your retirement strategy, identify gaps, and reduce risk. Experts recommend a withdrawal range of 4-5% to understand how long your savings will last.

Entering the retirement red zone requires reducing exposure to high-risk assets. Health Savings Accounts (HSAs) are critical for covering medical expenses in retirement, with the average retiree spending $2,700-$6,500 annually on healthcare. Catch-up contributions for retirement accounts are available at 50, allowing for increased savings during peak earning years.

Planning for retirement in the final decade requires precision and careful adjustments. Clear milestones, conservative estimates, and working with a financial advisor can make the difference between a comfortable retirement and financial uncertainty. It’s essential to have a detailed savings plan for the next ten years to ensure a secure retirement.

Read more at Yahoo Finance: I’m 55 and want to retire in 10 years. How can I make sure I’m on the right track to afford it?