Your Annual Retirement Checkup: 10 Things to Review Every Year

A retirement plan is not a document you write once. Salaries rise or stall, employers change, families grow, markets reshape your asset mix, and the IRS adjusts limits on a regular schedule. Small drifts compound, and so do small corrections. A yearly review, done in an afternoon, catches most problems early.

Here are ten things worth checking every year, roughly in the order that makes the work easiest. This article is general education, not personal advice; your situation may call for different priorities.

1. Gather your statements and logins

Start with a single list of every account: workplace plans, IRAs, old 401(k)s from former employers, brokerage accounts, pensions and health savings accounts. Note the current balance, where the money is invested and which contact manages it. Forgotten accounts are common, and consolidating them or at least listing them makes everything else easier. If you left a job and never decided what to do with the plan, our guide to 401(k) options when you leave a job explains the choices.

2. Check your contribution rate against the limits

The IRS publishes contribution limits for 401(k)s, IRAs and other plans, and they can change from year to year. Look up the current numbers on irs.gov instead of relying on a remembered figure. Then compare them with what you are actually contributing:

• On track? If you intend to maximize an account, check that your payroll deferrals will reach the limit before the last paycheck of the year. Front-loading too aggressively can cause you to miss part of an employer match in plans that match per paycheck.
• Eligible for catch-up contributions? Older savers may be able to contribute more. Our guide to catch-up contributions covers the rules.
• IRA timing. IRA contributions for a tax year can generally be made until the tax-filing deadline the following year, while workplace plan deferrals run through payroll and generally must be completed by December 31.

3. Make sure you are capturing the full employer match

An employer match is part of compensation. Review your plan documents or your HR portal to confirm the match formula, then confirm that your contribution rate is high enough to earn all of it. Also look at the vesting schedule: if you are close to a vesting milestone, that may influence the timing of a job change.

4. Review your asset allocation

Over a year, strong markets can leave you holding much more in stocks, or in bonds, than you planned. Look at the whole picture across all accounts, not one account at a time:

• What percentage is in stocks, bonds, cash and other assets?
• Does that fit your time horizon and your comfort with losses?
• Is any single holding, such as your employer's stock, a large share of the total?

If you have a target-date fund, check that its glide path still fits you. These funds shift gradually toward more conservative holdings as the target year approaches, but different fund families use different paths.

5. Rebalance if it makes sense

Rebalancing means returning to your target mix by directing new contributions to the underweight asset class or by selling some of what has grown. In tax-advantaged accounts such as a 401(k) or IRA, selling generally does not create an immediate tax bill. In taxable accounts it can, so compare the tax cost with the benefit. Some people rebalance on a calendar schedule; others only when the mix has drifted by a set number of percentage points. Pick a rule and stick to it, because inconsistent rebalancing tends to follow headlines.

6. Look at fees

Fees are among the few things investors can control. Check the expense ratios of your funds, any plan administrative fees, advisory fees and account maintenance charges. Your plan's annual fee disclosure and each fund's prospectus list the figures. Our explainer on 401(k) fees shows what to look for. If a comparable lower-cost fund is available in your plan, a switch may be worth considering.

7. Update beneficiaries

Retirement accounts pass to the person named on the beneficiary form, which can override a will. After marriage, divorce, a birth or a death, the form may be wrong. Check primary and contingent beneficiaries on every account, including old ones. Our guide to retirement account beneficiary mistakes walks through common errors.

8. Check tax moves before year-end

Year-end is also tax-planning season. Depending on your circumstances, questions worth asking include:

• Would a Roth conversion make sense in a year when your income is lower than usual?
• If you are older, have you taken any required minimum distributions due? The IRS sets the starting age and the penalty rules, so check its current guidance.
• Are you adjusting your withholding correctly on retirement account withdrawals?
• Could you qualify for the Saver's Credit, which is aimed at lower and moderate incomes?

A tax professional can help if the answers are unclear.

9. Check your Social Security record

Create or sign in to your my Social Security account at ssa.gov and review your earnings history for gaps or errors, which can lower your future benefit. The statement also shows estimates at different claiming ages. Our guide on how to read your Social Security statement explains the numbers. Estimates are projections, not guarantees, and they depend on future earnings and legislation.

10. Re-estimate the goal and your spending

Finally, ask whether the destination has changed. Compare your current savings pace with the amount you hope to need, using conservative assumptions for returns and a realistic estimate of spending. Include:

• expected retirement date and a flexible alternative,
• health care costs before and after Medicare,
• any pension or annuity income,
• debts you expect to carry into retirement,
• support you may provide to family members.

If the numbers look short, you have levers: a higher savings rate, a later retirement date, part-time work or a lower spending target. Small changes made early cost far less than large ones made late.

Keep it light and repeatable

You do not need to change something every year. In many years the review will end with "no action needed," and that is a good result. Write down what you checked and what you decided, so next year's review starts from a record instead of memory. Keep a simple spreadsheet with balances, allocation, contribution rate and beneficiary dates.

If a review turns up something bigger, such as a large cash balance sitting idle or a plan that no longer fits your goals, take your time. Compare options, read the fine print and consider speaking with a licensed professional before making a significant change.

Set a calendar reminder for the same week each year, and treat the review as maintenance, like changing the batteries in a smoke detector: not exciting, but quietly protective.