Wealth Strategies for Near-Retirees
It's Not Too Late. Here's How to Catch Up.
You're 55-65. You've worked hard your entire career. Life happened. Now you're facing retirement with less saved than you planned. You need a strategy—not guilt.
You're Not Alone
Life Happened
The median retirement savings for Americans 55-64 is approximately $134,000. But median isn't a strategy. You need a plan.
You didn't fail. Life threw curveballs:
"It's not about where you are.
It's about where you're going."
The Near-Retiree Reality
Three Critical Challenges
The Time Crunch
5-10 years of peak earning left. Traditional savings alone won't be enough to build the retirement you need.
Sequence of Returns Risk
A market crash in your first few retirement years can be devastating. The 5 years before and after retirement are the highest-risk.
Outliving Your Money
Life expectancy continues to increase. Running out of money before you run out of life is a real fear.
Sequence of Returns Risk
A market crash in your first few retirement years can devastate your portfolio— even if the market recovers later.
The Devastating Math:
- $500,000 portfolio
- Year 1: Market drops 30% = $350,000
- Year 1: You withdraw $40,000 = $310,000
- You need 61% gain just to recover
The 5 years before and after retirement are the highest-risk years for your portfolio.
Recovery needed after 30% drop + withdrawal
That's why we build in protection before retirement
The Framework
Five Near-Retiree Wealth Strategies
A comprehensive approach to catch up, protect, and maximize your retirement.
Accelerated Catch-Up
Max every tax-advantaged vehicle available—plus unlimited Section 7702.
Guaranteed Income Foundation
Optimize Social Security timing and create income you cannot outlive.
Tax-Free Income Component
Reduce lifetime taxes and avoid Social Security taxation triggers.
Downsizing & Repositioning
Unlock hidden wealth in home equity and non-income assets.
Part-Time Income Bridge
Semi-retirement strategy to maximize everything by age 70.
Strategy 1
Accelerated Catch-Up Vehicles
Maximize every tax-advantaged vehicle available to you.
| Vehicle | 2024 Limit | Catch-Up (50+) | Total | Notes |
|---|---|---|---|---|
| 401K/403b | $23,000 | $7,500 | $30,500/year | Tax-deferred (tax problem later) |
| IRA (Traditional/Roth) | $7,000 | $1,000 | $8,000/year | Roth = tax-free |
| HSA (if eligible) | $4,150-$8,300 | $1,000 | $5,150-$9,300/year | Triple tax advantage |
| Section 7702 | None | N/A | Unlimited | Tax-free growth & access |
Total Annual Tax-Advantaged Potential: $75,000-$150,000+/year
Strategy 2
Social Security Optimization
Create guaranteed income you cannot outlive.
Benefit by Claiming Age
| Claiming Age | Benefit vs Age 62 | Monthly (Example) |
|---|---|---|
| 62 | 70% | $1,750 |
| 67 (FRA) | 100% | $2,500 |
| 70 | 124% | $3,100 |
The Math:
Waiting from 62 to 70 increases benefits by 77%. That's guaranteed, inflation-adjusted, for life.
Break-Even Analysis:
- If you live past age 80-82, delaying to 70 wins
- 50%+ of 65-year-olds will live past 82
- Delaying Social Security is one of the best "investments" available
Bridge Strategy:
Use Section 7702 policy loans or other savings to bridge the gap from retirement to delayed Social Security.
Strategy 3
Why Tax-Free Matters More for Near-Retirees
Without Tax-Free Component
With Tax-Free Component
The Savings: $5,000-$10,000/year in reduced taxes
"The question isn't whether you can catch up.
The question is: How much better can your retirement be with the right strategy?"
Real Results
Near-Retiree Case Study
Linda
Administrative Manager, Age 58
The Challenge
Only 9 years to mandatory retirement. Current trajectory: ~$350,000 by 67. At 4% withdrawal + Social Security = $40,400/year. That's only 52% income replacement—not enough to maintain lifestyle.
The Strategy
Years 1-2: Max 401K ($30,500/yr), backdoor Roth ($8,000/yr), start Section 7702 ($15,000/yr). Years 3-9: Pay off mortgage by year 5, redirect to Section 7702 ($20,000/yr). Age 67-70: Work part-time ($35K), delay SS, Section 7702 loans ($15K tax-free).
The Outcome
Age 70+: Social Security at 70 = $33,600/year. 401K withdrawals = $25,000/year. Section 7702 loans = $25,000/year (tax-free). Total: $83,600/year = 98% income replacement. Tax-free component: 30%. Death benefit: $300,000+ for heirs.
Questions
Common Questions from Near-Retirees
We specialize in helping near-retirees who feel behind. No judgment—just solutions.
Ask Your QuestionReady to Catch Up?
Schedule your catch-up strategy session. We'll analyze your current savings, income, and timeline to design a realistic catch-up strategy. No guilt—just a plan.