Retirement planning is a process that takes place over several decades. Achieving financial security during this time requires careful consideration and preparation. According to a 2019 study by the Federal Reserve, just 45 percent of non-retired adults over the age of 60 stated that their retirement planning is on track.

Here’s what you need to know to manage your finances when you turn 60. 

Hire a financial planner

A common misconception is that an individual’s portfolio should mirror their age—for instance, a 60-year-old should have 60 percent of their holdings in bonds. This strategy could be a recipe for disaster in today’s low-interest-rate environment.

Work with a financial adviser to test your portfolio’s ability to meet your needs beyond your [predicted] life expectancy since we are living longer than ever before.

Estimate your income

Next, you need to accurately assess your current spending and project how much income will be available at your retirement date from sources such as social security, pensions, and investments.

AARP provides several tools to assist its members in making social security decisions and determining how long their savings will last in retirement.

Research insurance

For many people, health insurance costs are a concern when they retire before age 65. If you plan to retire early and anticipate needing medical insurance, you should research the cost of different plans and compare them to your budget.

You can find out whether you qualify for a federal subsidy at healthcare(dot)gov.

Pay off debt

A long-term strategy for enhancing cash flow is to pay off high-interest debts, such as credit cards, while continuing to save and invest. This may prove more profitable in the long run than paying down low-interest loans.

Do a dry run

Before you retire, plan to make sure your retirement income will be sufficient to meet your needs. Review and confirm your actual cost of living. If it does not look accurate, you can plan for adjustments.

Plan your daily routine

Visualize what a typical day might look like. For example, you might work part-time, volunteer in the community, or travel. It’s important to make sure that your spouse or family members understand your plans so they can support you as needed.

Consider joining organizations, classes, or volunteer groups that interest you to develop new friendships. If you don’t know how to spend your extra time and energy after retiring, you may become depressed and feel lost.