If you’re ready to retire at 63, congratulations—this is a major milestone. But before you hang up your scrubs and start living the next chapter of your life, it’s crucial to ensure that your finances can support a retirement that may last 30 years or more.
Whether you plan to fully retire at 65 or ease into it over the next few years, this step-by-step guide will help you solidify your plan and prepare with confidence.
Step 1: Maximize Your Retirement Contributions
Now is the time to supercharge your retirement savings—especially while you’re still earning a full income.
401(k) and 403(b) Plans (2025 Limits)
If you’re over 60, you qualify for special “super catch-up” contributions that can significantly boost your savings.
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Standard Contribution Limit: $23,500
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Super Catch-Up (Age 60–63): $11,250
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Total Contribution Limit: $34,750
Take full advantage of this window if you’re still working full-time.
IRA Contributions (2025 Limits)
You can also contribute to a Traditional or Roth IRA, depending on your income eligibility.
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Standard IRA Limit: $7,000
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Catch-Up Contribution: $1,000
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Total IRA Limit: $8,000
If possible, contribute the maximum to both your employer plan and an IRA.
Step 2: Review Pension and Social Security Options
Employer Pension Plan
As a registered nurse, you may have access to a defined benefit pension. Contact your HR department to:
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Request a pension estimate
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Understand your payout options (lump sum vs. monthly)
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Review early retirement penalties, if any
Social Security Benefits
You can begin collecting Social Security at 62, but your benefits increase the longer you wait.
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Full Retirement Age (FRA): Likely between 66 and 67
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Maximum Benefit: Achieved by delaying until age 70
Use the SSA’s Quick Calculator to get an accurate estimate based on your earnings record.
Step 3: Calculate Expected Retirement Expenses
To ensure your income will meet your needs, estimate your monthly and annual retirement expenses:
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Housing (mortgage, rent, property taxes)
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Utilities and maintenance
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Food and household costs
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Healthcare (Medicare premiums, out-of-pocket costs, insurance)
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Travel, hobbies, and leisure
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Inflation (build in a 2–3% annual increase)
Once you understand your future cost of living, you can compare it to your expected retirement income.
Step 4: Identify Additional Income Sources
If your projected income falls short of covering your expenses, consider these supplemental strategies:
Part-Time or Per Diem Work
Many retirees continue working in a limited capacity to maintain cash flow and stay socially engaged.
Annuities
Consider purchasing a fixed or immediate annuity to generate guaranteed monthly income—especially if you don’t have a pension.
Investment Adjustments
Revisit your asset allocation. At this stage, your portfolio should strike a balance between growth and preservation. A financial advisor can help ensure your investments align with your risk tolerance and retirement timeline.
FAQs:
What is the maximum I can contribute to my 401(k) at age 63 in 2025?
You can contribute up to $23,500, plus a super catch-up contribution of $11,250, for a total of $34,750 if you’re aged 60–63.
How can I estimate my Social Security benefits?
Use the SSA Quick Calculator or create a My Social Security account at SSA.gov for personalized estimates.
Should I delay taking Social Security benefits?
Delaying benefits can increase your monthly check. If you can afford to wait—and are in good health—it may be worth the extra income over time.
What if I have a pension?
Get a detailed breakdown of your options from HR. Compare a lump-sum payout vs. monthly benefits and understand the tax implications of each.
Is working part-time in retirement common?
Absolutely. Many retirees choose part-time work to stay active, earn supplemental income, or maintain access to employer health benefits before Medicare kicks in.
