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Editor’s note: Retire Early in 2026 is part of a series on how to retire early and the FIRE (Financial Independence, Retire Early) movement. Part one is How to Retire Early in Six Steps.

It’s said that waiting for the right moment is just procrastination in disguise. So, what if 2026 is the year you finally prepare for early retirement and start living it by December 31?

Retiring before 62, or even by 55, is an exciting but daunting goal, as many traditional benefits aren’t yet available to you. How do you access retirement accounts without penalties? Will you have enough income without Social Security? What’s your plan for health coverage?

Retire early in 2026 (or at least by year’s end)

There’s no Goldilocks moment in this story. You have to trust the work you’ve already done — whether it’s saving half your income, living modestly, or building multiple streams of income. As self-help author Napoleon Hill put it: “Don’t wait. The time will never be just right.”

If you’re done waiting but aren’t sure what the final steps are, this monthly early retirement checklist is for you. By December 31, 2026, you can ceremoniously update your LinkedIn profile headline to include one very satisfying word: “former.”

January: review your retirement readiness

Since this year’s resolution is greater than dropping a few pounds, there’s no time to waste. Brett Spencer, CFP® and founder of Impact Financial, advises, “Retirement planning can be overwhelming, especially dealing with the nuances of early retirement. Just like a new year’s workout program, getting started is key.”

Here’s what to tackle first so your goal doesn’t collect dust like an unused gym membership.

Assess your target: How much do you need? The Rule of 25 is a simple formula: multiply your estimated annual retirement expenses by 25. This provides a target number that could allow you to withdraw 4% annually while preserving your nest egg. For greater accuracy, try our retirement calculator.

Build a budget: Include essentials like housing and food, as well as fun stuff like travel. Recognizing many high-income workers in the FIRE (financial independence, retire early) movement, WorthPointe partner and CFP® John Chapman says, “High earners may not need to budget while working, but in early retirement, it’s a must.”

Get a plan and run projections: A financial adviser can stress-test your plan for worst-case scenarios, ensuring your money outlasts you — not the other way around.

February: build a healthcare plan

Instead of your sweetheart, focus on your own heart this year — literally. Medicare doesn’t kick in until 65, so healthcare is often a major planning hurdle for early retirees.

Explore options: Look into COBRA, ACA marketplace plans or joining a spouse’s plan. Among these, enrolling in a spouse’s plan often proves most cost-effective, providing a bridge to Medicare eligibility. Chapman notes, “Premiums depend on income, so understanding coverage is critical.” Remember that you can also use funds in a health savings account (HSA) when you retire.

Schedule checkups: Knock out physicals, dental visits and specialist appointments while you’ve got coverage.

March: organize your financial accounts

Madness is for basketball, not your finances. This month, simplify.

Consider consolidating accounts: It may make sense to combine investment and retirement accounts for easier management. Make sure you know which financial and tax documents to keep and how to store them safely.

Pay off high-interest debt: “Eliminating debt, including your mortgage, lowers fixed costs and adds peace of mind,” Chapman says. Try some of our tips for how to pay off credit card debt.

Build cash reserves: Save 6-12 months of expenses in a high-yield savings account or money market account. “Since early retirees may not access retirement accounts without penalties, it’s important to hold at least a year’s worth of expenses in cash reserves,” Chapman adds. “Also, build up significant non-retirement investments to fund spending before tapping into retirement accounts.”

April: maximize tax opportunities

This is the rare year when tax season brings joy. Spencer says, “Beyond filing, it’s a great time to take advantage of any tax benefits and plan for the year ahead.”

Boost retirement accounts: For instance, you can max out 2025 IRA contributions by April 15, 2026. Spencer also recommends “maximizing 401(k) contributions and considering contributing to an HSA or FSA for additional tax deductions.”

Consider Roth conversions: “Once you retire early, your taxable income may drop significantly,” Chapman says. This creates a great opportunity for Roth conversions — transferring funds from pre-tax (“traditional”) IRAs or 401(k)s to Roth IRAs at potentially lower tax rates. He suggests consulting a tax adviser to determine the right amount to convert without triggering unintended tax consequences.

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(Image credit: Getty Images)

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