Smart Money Moves for 2027
Here’s what you should look into right now to improve your financial future
By Deborah Jeanne Post
In 2025, about 4.2 million Americans turned 65, according to the Federal Reserve Bank. Yet 27% of households headed by someone aged 65 to 74 have no retirement savings at all.
WalletHub’s 2025 budgeting survey revealed that about 25% of people aged 59 and older do not have a budget and of those, 73% said that they don’t because of increasing costs. It’s not because they are so wealthy that they don’t need to pay close attention to expenses.
Fortunately, it is possible to positively affect one’s finances.
As 2026 draws to a close, it’s important to make plans now to make 2027 a year that will benefit your finances for years to come. Like a financial new year’s resolution, making changes at the beginning of the year provides a fresh start.
To talk about what people who are 55-plus can do to set themselves up for a better financial situation, we sat down with Jeff Feldman, Ph.D., certified financial planner with Rochester Financial Services in Pittsford; Victoria Tabor, vice president and certified divorce financial analyst at Brighton Securities; Rudy A. Diedreck, certified financial planner and financial adviser at Edward Jones in Rochester; and Leah Granger, certified financial planner at Thorley Wealth Management, Inc. in Rochester.
Q: What is the smartest money move that people who are 55-plus can do at the beginning of a new year?
Jeff Feldman: Max out on your retirement plan contributions. The annual maximums have become very generous over the years. The 2026 limits are $24,500 for those under 50 and $32,500 for those 50 and older. For those 60 to 63, the amount is $35,750. Contributions for IRAs are $7,500 and $8,600 for those over 50. These amounts are likely to go higher in 2027. And you have until April 15 or your tax filing date to make 2026 contributions.
Q: What are a few retirement account ideas?
Jeff Feldman: If you are in a higher tax bracket, it probably makes more sense to contribute to traditional 401ks and IRAs vs. Roth accounts. Getting the tax deduction now usually makes more sense. However, if you have retired and find yourself in a lower tax bracket, then doing Roth conversions might make sense. As part of this strategy, delaying taking Social Security until age 70 can help keep your income lower to help in the conversion strategy. With interest rates on the rise, make sure that you don’t have excess cash sitting in a bank account getting close to 0% interest. You should be able to invest in money market funds getting in the ballpark of 3.70% and at the same time, have the funds be 100% liquid.
Q: How should people 55-plus make changes in their finances?
Victoria Tabor: For people 55 and older, the goal isn’t necessarily to make dramatic changes overnight. It’s to use the next few months to get organized, identify the biggest financial gaps and make a few intentional moves that can put them in a stronger position heading into 2027. Get a clear snapshot of where you stand. Before making any major financial decision, know your numbers. Review your investments, cash reserves, debt, insurance policies, any Social Security income or anticipated Social Security, pensions, and retirement accounts — if you’ve changed jobs several times, you may have accounts scattered across several former employers. Year-end is a good time to locate those accounts, understand the fees and investments, and decide whether consolidation makes sense.
Q: What about budgeting?
Victoria Tabor: Know what you spend each month and what you’ll need in the year ahead, while anticipating specific goals – such as travel, home improvements or helping adult children and or parents. Look ahead at big costs in the year ahead.
Q: What about healthcare?
Victoria Tabor: Review your HSA. If you’re HSA-eligible, consider maximizing contributions. Understand the HSA’s potential role as a long-term healthcare and retirement asset. They hold a three-part tax benefit: contributions can be tax-deductible, growth can be tax-free, and withdrawals for qualified medical expenses can be tax-free.
Q: How about taxes?
Victoria Tabor: Do a tax checkup. Look at your tax bracket, withholding, capital gains and charitable giving. Consider whether a Roth conversion or other tax strategy makes sense for your situation. Reduce high-interest debt. Prioritize expensive debt and evaluate whether you can enter the new year with fewer fixed monthly obligations.
Q: What about investments?
Victoria Tabor: Review investments and risk. Check whether your portfolio still matches your time horizon and risk tolerance. Look for excessive concentration in one stock or position. Protect against big risks.
Q: How about final planning?
Victoria Tabor: Review health insurance and Medicare planning, life insurance, disability coverage, long-term care considerations and emergency savings. Update your financial housekeeping. Check beneficiaries on all accounts and insurance policies. You may have life changes — marriages, divorces, deaths, new grandchildren — and your documents should keep up. Review your will, powers of attorney and other estate documents. Make sure your family members know where important financial information is located, preferably all together in one binder or file that’s updated annually. You don’t need to solve everything before Jan. 1, but you should know where you stand, understand the decisions ahead, and create a plan for not only year-end but throughout 2027 as well. Financial confidence comes from having a plan you can actually execute.
Q: How should people think about giving?
Rudy A. Diedreck: Charitable contributions are really, really good. You can do contributions in general, but an appreciable stock is something we don’t hear about a lot. For example, if you bought stock for $1,000 three decades ago and now it’s worth $50,000, if it’s a nonretirement account, you pay taxes on the difference. What some people do is do charity contributions and take this appreciated stock, donate the $50,000 and they get a $0 tax gift. You don’t have to pay tax on a gift to a charity.
Q: How can people help their grandkids or underaged children?
Rudy A. Diedreck: Open 529 savings accounts for grandkids. Specific to New York state, an individual who owns a 529 college fund which a grandparent or parent can own can be in their beneficiary’s name but the adult is the owner. You can donate $5,000 a year, $10,000 if you’re married and write off that from your New York state taxes but not federal. You do not have to itemize but use standard deductions. A new tax rule says you can take 529 money and flip it to a Roth IRA for that kid over time.
Q: How should people look at their spending?
Rudy A. Diedreck: Know what your expenses are. I highly recommend budgeting to every single new client and I actually send them a blank monthly budget worksheet. To be super honest, many have little idea of what they’re spending per month until you go pen to paper on their actual budget. You see every single thing and it’s not $2,500 but $4,000 that you’re spending. Use a printed, hard copy monthly budget worksheet. Write down every single expense. What I say is if it brings you joy, keep doing it. If it’s just an expense that you really don’t need, like six different streaming services and what you actually watch is “Downton Abbey,” why do you have six services? You’d be surprised at how many people 10%-25% of their expenses is garbage. Going out to eat is a big one. Many people like to use those food delivery services. You’re paying 20%-30% more because you’re too lazy to pick it up.
Q: How do taxes relate to retirement and how can people improve their situation?
Leah Granger: The No. 1 thing for people who are 55 plus is to create a proactive tax strategy. Review retirement contributions making them into pre-tax or Roth side of their employer plan. Identify any opportunities for Roth conversations, the most tax-effective way to support their cash flow needs for the coming year. Look at potential tax loss harvesting in their nonretirement accounts, particularly this year given the bond market performance is particularly attractive.
Q: What advice do you have for retired people or those near retirement?
Leah Granger: Avoid lifestyle creep. Keep spending within a range that your cashflow can support, either earned income or savings if retired. Identify high interested debt and develop a plan to address and eliminate that. If you’re still working, explore increasing your savings in preparation for retirement. Be very mindful as to where that savings is going. Sometimes where you save is just as valuable as the act of saving more. Saving in the right place is really valuable. For some, that might be adding more to their employer sponsored plan. For others, in a non-taxable retirement account depending on the timeline, goals and tax situation.