Are you 5 years from retirement? Do these 5 things now — or risk running out of cash

You've dedicated years of your life to work, and now your retirement is just five years away. This is both an exciting and daunting time. While Americans are working longer, with the average retirement age rising to 62, research shows that many people aren't as prepared as they should be. Only 57% of Americans aged 55 to 64 have retirement assets, and fewer than 10% have more than $1 million saved.

But it's never too late to take control of your financial future. At this stage in life, you're likely at your earnings peak, your children have likely left home, and your mortgage may be paid off or nearly so. This makes it an excellent time to focus on yourself and your post-work life.

Here are five steps you can take to ensure you're ready to retire in the next five years:

1. Max out your 401(k) contributions. If you're between 50 and 59, you can contribute up to $32,500 to your 401(k) in 2026. This includes a catch-up contribution of $8,000. If you're between 60 and 63, you can contribute even more, up to $35,750, including an additional $3,250 catch-up contribution.

2. Consider Roth conversions. If you have a traditional 401(k), you can convert some of your funds to a Roth IRA. This can be beneficial if you expect to be in a higher tax bracket in retirement.

3. Plan your withdrawals. The standard 4% withdrawal rule can help guide your retirement planning. However, it's important to stress-test your portfolio for potential downturns and create a back-up budget or emergency fund.

4. Consider Social Security strategy. Delaying Social Security benefits could increase your monthly benefit. You may also want to consider selling some assets from your taxable brokerage accounts for tax gain harvesting or converting 401(k) funds into a Roth IRA for tax-free growth.

5. Plan your lifestyle. Retirement isn't just about finances. It's about the lifestyle you want to lead. This could include continuing to work part-time, taking up new hobbies, or traveling. Make sure your financial plan reflects your desired lifestyle.