What to do as retirement nears

Determine how much income you'll need

The amount of money you'll need for a rewarding and secure retirement depends on you.

If you're paying off big medical bills or want to see the world, you'll need more than if you’re debt-free and have no big plans to travel.

If you decide to retire early, you'll need to factor in the cost of health insurance until you qualify for Medicare at 65.

But the most common rule of thumb is that we should be able to replace 70% of our pre-retirement income after we stop working.

You’ll want to tally up your guaranteed retirement benefits from Social Security and any pensions and see how close you are to meeting the 70% rule — or the percentage you’ve determined you need.

Most people will fall short, which bring us to your personal retirement savings — the money you’ve been putting aside through a 401(k) or IRA.