The 5 Years Before You Retire: Retirement Planning When You Need It the Most

by Emily Guy Birken

A comprehensive guide to planning your future retirement before it's too late!

Even though half of all Americans put money aside for retirement, it isn't until they reach their sixties that many realize that they haven't saved enough. With The Five Years Before You Retire , you'll hone in on what you need to do in the next five years to maximize your current savings and create a realistic plan for your future. This book guides you through each financial, medical, and familial decision, from taking advantage of the employer match your company offers for your 401k program to enrolling in Medicare to discussing housing options with your family. Covering every aspect of retirement planning, these straightforward strategies explain in detail how you can make the most of your last few years in the workforce and prepare for the future you've always wanted.

Whether you just started devising a plan or have been saving since your first job, The Five Years Before You Retire will show you what you need to do now to ensure that you live comfortably for years to come.

Genres: Nonfiction, Finance, Personal Finance, Self Help, Money, Personal Development, Reference

240 pages, Paperback

First published December 2, 2013

Reviews

[Jay French · Rating 3 out of 5]

I had expectations based on the title that this book would assume you knew something about investing for retirement. That was incorrect. While stating that this is aimed at those 5 years away from retirement, the book starts with the same make a budget chapter that most simple beginner personal investment books start with. Ugh. But Birken throws in some timely advice later that save the book in my estimation. She provides a handful of interesting and new-to-me tips on Social Security, Medicare, Medigap, and ACA, and dives into some other interesting (to the age bracket she's aiming at) topics including reverse mortgages, long term care insurance, and withdrawal rates. She doesn't really go into any great depth in any of these topics, but you might see something you didn't know before - especially on ACA for those considering early retirement. The author highly recommends hiring a financial planner (for general planning purposes, but also to deal with the question of how and when to claim social security since there are many options there) as well as an accountant for dealing with changes in tax. In the end, the book doesn't deal with the topics from a do-it-yourselfer point of view, but does put the reader in the right frame of mind to start considering the issues. Reasonable for an overview or review.

[Read Ng · Rating 4 out of 5]

A good basic primer on retirement. There is sufficient discussion and worksheets to get you at least thinking about it.

I really believe none of us plan early enough. You might be put off by the title, since it does not sync with your personal timeline. I think you owe it to yourself to be the youngest person in the room with a retirement strategy. Your goal is to be able to retire comfortably (both monetarily and emotionally) before everyone you know.

For example, everyone tells you to retire mortgage free. Under a 5 year timeline, that will likely be an unrealistic goal. Plan ahead.

You don't have to retire, you just want to be able to retire on your terms and not be forced to retire with less than optimal options. This is a good start to that end. I guess I am too much of a planner.

Have a GoodReads.

[David · Rating 5 out of 5]

This book is really great for its intended audience - I would give it ten stars minimum, maybe more. Lots of practical information here for those of us heading for their retirement sooner rather than later. (For those of you who are not currently in the 5 years before you retire, you still might want to take a peek, just to think ahead a bit.) I'm no financial advisor, so I can't vouch for every bit of advice the author offers, obviously. But she clearly knows her stuff, and perhaps more importantly for the reader, she offers a lot of processes for you to work through specifically about your own situation and come up with answers that you can live with.

I learned about this book because it was cited in a book I'm editing by the fabulous Susan Robison, so I got it from the library. Now that I've read it, I'm going to buy a copy, because otherwise the library is never going to get this book back, and that wouldn't be fair to all the other folks who need this excellent resource.

[Michelle Yau · Rating 2 out of 5]

Ok fine, I might be too young for this one.

[ChrisO · Rating 4 out of 5]

A solid overview of what to expect and plan for in retirement.

[Paul Klammer · Rating 5 out of 5]

Seems like an excellent single book to start reading around 30 years of age, and anytime later. Biggest take away personally is the reality of the inadequacy a d risk that retirement health care costs represent. Should have understood these much sooner.

[Marie · Rating 5 out of 5]

Replace 80% of the value of your paycheck in order to maintain your lifestyle.

Social security calculates the 35 highest earnings years of your career.

Medicare A $148.5 month covers hospital. Deductible is $1484

Medicare B $148.5 month covers outside of hospital (dentures, dental, eyes, hearing aids, foot care, acupuncture)

Enrollment: 3 months before 65th birthday and ends 3 months after 65th birthday

Much better to buy than to rent housing.

At 64 years and nine months enroll in Medicare A and B and Medicare prescription drug plan.

At 65 years of age purchase a Medicap policy.

Every year you delay receiving social security from age 67 to age 70 you will receive an 8% increase

At 72 years you must begin taking required minimum distributions from IRA's.

Any lapse in the time line may result in fines.

[Kimberly Cranford · Rating 5 out of 5]

Very easy to read without technical financial jargon. I read this book far under the age of 60 and highly recommend others do the same to get a sense of things to consider that we otherwise wouldn't think about until it's too late regarding retirement and financial wellness in general. I'm so glad I received this book recommendation.

[Sue · Rating 4 out of 5]

Good book if you want to keep it simple.

[Chris · Rating 3 out of 5]

Decent, but pretty basic. I have already done most of the the book's recommendations.

[Paul · Rating 4 out of 5]

I realize that this book's relevance and usefulness is not limited strictly to people who plan to work exactly another five years, but that seems to be the current plan. I started reading it a year ago, and as a new school year starts up, I'm counting on four more years of teaching.

But a key theme of this book is that life does not always go according to plan, and this book is tremendously helpful in performing reality checks of different kinds. Line-by-line budgeting has never been my strength, and certainly not my joy, but this book has helped me do financial planning on many levels without having to record every cup of coffee I buy.

It does a good job of explaining so many things that range from somewhat to completely fuzzy, including Medicare, Obamacare (which has changed since the printing of the book), some aspects of Social Security, retirement accounts, investment accounts, insurance, and more. I'm still no expert, but I do have a better grip on all of these. The book also advocates alternate plans, like contingencies in case of disability or RIF. I have already made some decisions and taken some actions based on this book.

So, while it will always be in my nature to follow my heart moreso than my head, at least my head is still functioning, and I can pay the necessary attention to it. This is a very useful book, and remains useful, even if I tweak the plan (or it gets tweaked by outrageous fortune). It now moves to the "read" status, having attained the distinction of being on the "currently reading" list longer than any other since I joined Goodreads.

[Richard · Rating 5 out of 5]

This is an excellent book on financial planning for people approaching retirement. Simple (though not simplistic), concise, straight-forward, and covers the important topics. I've read several books on investing, I have an MBA in Finance, and have read a few on retirement planning. This book goes over the basic topics you need to think about and gives you some guidelines, checklists and forms to help you plan, and points you in the right direction for further help. Unlike many investment or financial planning books today, the author doesn't have an "agenda" with a simple "do it this way and you will succeed" kind of formula. I borrowed it from the library, but I plan to purchase the new revised edition that will be released in May 2021.

[Julesy · Rating 4 out of 5]

This is a good guideline for those who are "thinking" of retiring in the next 5 years. It speaks at a very high level so if one is looking for something with more details and scenarios, there are other books and resources that will provide that. For someone who is just starting out planning and researching their retirement or do not know where to start, this is a good resource. I read this book in just a few hours, skipping sections that do not apply to me or I was already informed about. I am glad that I was able to get this from my library. With a publication date of 2014, it is outdated as there are changes to the Affordable Care Act (i.e., "Obamacare") and TrumpCare.

[Kim · Rating 3 out of 5]

Very quick read that helps you develop a 5 year plan to retirement. And for everyone else, it points out the questions you need to know about what you want your retirement to look like, what are your best strategies to make it happen and also shares some hard truths that the tag end of the baby boom generation might not want to hear.

[Peter Sprigg · Rating 4 out of 5]

I started reading this book last year when I had become (voluntarily) unemployed; I finally finished it this year when I again became (involuntarily) unemployed. This is a useful guide--it contains some information that I will probably never use, but other insights that were real revelations that will probably help me. I only wish I had read it five years ago! ;-)

[Chris · Rating 3 out of 5]

decent starter

[Pam · Rating 3 out of 5]

Good basics on retirement - did glean a couple of things from the book but most of the book was stuff I already knew.

[Helen · Rating 5 out of 5]

A must read as you near retirement.

[Carolyn Wagner · Rating 3 out of 5]

This is a book that really needs to be read more than 5 years before retirement. Several things she suggests you do really need to be done way before age 60-62. She gives an example of disability insurance and the fact that it is very difficult to obtain before age 60. So if you are planning on retiring at 67, for example, and read this at 62, you are out of luck. The edition I read was from 2013, so monetary figures are quite out of date. Do your own research here.

I also felt she left out some information, although this is a good basic book. For example, pet owners need plan for increased expenses as pets themselves age. Adopting a pet in retirement needs consideration too as to the age of the pet and "custody" of the pet should the retiree pass away or enter long-term care and plans for financial issues that could arise. Too many elderly people need help with pet food and veterinary assistance, and it helps to be aware of local charities and organizations that can help with that, allowing the owner and pet to stay together longer.

I wish, too, that she had talked about more about the particular challenges for divorced and single seniors who don't have spouses or deceased spouses' benefits to fall back on.

Finally I wish she had touched upon discounts for seniors. These can range from 10% at a fast food restaurant to hundreds of dollars off property taxes through homestead exemptions. My state has a discount card for those 62 and older that is accepted at many, many places in my state. Small discounts add up and may allow for someone with a tight budget to enjoy an occasional treat.

Overall I'm glad I read this but I didn't really learn anything new, other than reinforcing that preparing for retirement should definitely start long before 5 years before.

[MountainAshleah · Rating 3 out of 5]

This is a very good basic book that is best for people who aren't already familiar with let alone completely engaged in orchestrating their retirement plans. It's mostly basic information, very little new information, but at least it's fairly comprehensive and gives an easy-to-read place to start along with a very good timeline approach. (I have been adding notes int he book from other sources of information--YouTubers abound, and they can be overwhelming and not always accurate, so be careful, but they do provide other perspectives, all for free.) Having said that, this book is woefully outdated even when it was updated. Veterinary expenses/pet care, for example, should be addressed at least on the worksheets as they can be significant sources of expense AND more people are relying on having pets for companionship. Along those lines, hello, not everyone has a spouse/partner. I am so fed up with all things retirement assuming there's some spousal figure involved--isn't the US at 51% single population now? So how about not always jumping right to the spousal statistic or data point. Anyway, it's a basic book, recommended for those who don't have a clue where to start.

[Michael Loveless · Rating 4 out of 5]

Now that I'm almost 60, I'm beginning to seek information about retirement. The 5 Years Before You Retire is the second book I've read on the subject. This book met more of my needs that Retirement Planning for Dummies. The Dummies book went into a great amount of detail about the various types of investments available and how to decide on which to invest. It also went into more detail about how to go about investing (who should manage the investments). The 5 Years Before You Retire had more breadth and less depth. It talked more about healthcare in retirement. Ironically, given the title, it talked more about how to pull money out of various investments once you're in retirement. It also talked about what options a person has if they haven't saved up for retirement. In general, I think this book is a very good starting place for anyone 55-60 years old, who's just beginning to gather information about retirement.

[Eileen · Rating 5 out of 5]

The book I needed

I’m approaching my sixties and want - almost desperately- to retire. I was looking for a book that would clearly and simply tell me everything I needed to know and all the important things I didn’t know I needed to know. This book is outstanding- it is well organized, lots of worksheets and resources, and it covers everything imaginable without being overwhelming. It literally explained some things I have been unable to wrap my head around ever, so that I could turn around and explain it to my partner. The education I got was profound - I plan to purchase in paperback so I can read it a second time and make lots of notes. But best of all? I have a plan and it’s a good one. There is a light at the end of the tunnel and no, it’s not a train.

[Patricia · Rating 3 out of 5]

The 5 Years Before You Retire by Emily Guy Birken is a helpful, accessible guide that lays out practical steps to take as retirement approaches. It covers everything from savings and Social Security to healthcare and lifestyle planning in a clear, down-to-earth style. Birken does a great job breaking down what can often feel like overwhelming financial decisions into manageable, thoughtful actions.

That said, because the book was published several years ago, some of the financial details and references—especially regarding healthcare costs and retirement account limits—are understandably outdated. Still, many of the core principles and strategic planning tips remain highly relevant and useful as a foundation for retirement preparation.

[Jeff Z · Rating 4 out of 5]

If the book was more current, I’d be inclined to give it a 5 star rating. That said, I thought it was well-organized and well-presented. Many aspects of the subject matter are rather boring. Others, like Medicare, seem incredibly complicated. Birken manages to cover the array of topics in a friendly but reasonably direct way. In addition to the learning I took away directly from the book, reading it has prompted me to dig deeper into elements that I need to learn more about. It’s also helping me to focus on the planning process at the best time...while here’s still time to do something about it.

[Suezq · Rating 5 out of 5]

Lots of information packed into this short book. Not in depth on any one topic but made me think of thinks the other dozen or so books I've read on retirement hadn't. I know that I really need to study Medicare in depth but after reading a couple of books that discussed it, even briefly, the haze is starting to clear. I think it helped that I read this during the Medicare open enrollment period and was bombarded with TV commercials. Rather than tuning them out I actually stopped and listened to see if I could figure out what made one product better than the other. That's one positive step anyway.

[Deb L · Rating 5 out of 5]

Must-Read

The most comprehensive, practical near-retirement planning book I've ever read. Clear, easy to understand explanations with links to various related websites, and quotes from other authors with website and book recommendations. This book has won the enthusiastic designation of my go-to retirement bible from now all through the years leading up to retirement and beyond. VERY helpful, you really must get it, read it, share it, and refer to it often even if you are more than 5 years from planned retirement. Much of the financial information is timeless. Highly recommend!

[Robin · Rating 4 out of 5]

I listened to the audiobook so I was unable to take advantage of the worksheets etc..

This book is very easy to read. It is excellent for people who have given no thought or planning to retirement. It will really help them understand everything they need to know about things like social security and medicare. So many people just assume that they don’t need to put any thought into those benefits but this book makes it clear that there are mistakes to be avoided. And for people that have already done planning for retirement the book provides something of a checklist to make sure they haven’t missed anything.

[Anthony Cox · Rating 5 out of 5]

I really liked this book and how the author addressed the key points that most people need to consider when retirement planning. Even though some of the material is dated, she explains where the information came from so you can see if anything has changed since the book was written.

All of the opinions she gave were reasonable and conservative and seemed to be generally good advice. She brought several things to my attention that I hadn’t previously considered. I like the audio version of the book so much that I bought a paperback version for my reference.

[Lawrence Lewis · Rating 4 out of 5]

(Hoopla) Very informative book, outlining at what age things should happen as a person approaches retirement age. The book was published in 2016, so I recommend the reader verify the changes in rules as they approach retirement age. However, the author provides a financial framework for retirement:

(1) at age 62, sign up for my social security account at www.ssa.gov/myaccount

(2) social security takes the highest earning years in the 35 years of work (I won’t have a complete 35 work history until 2031 when I turn 65)

(3) at 64.5 years of age enroll in Medicaid Part A, B, C and D

(4) working during retirement means social security benefits will be reduced, if person collects retirement before full retirement age, but once a person reaches full retirement age (67), he/she can keep all of his/her social security benefits, no matter how much money he/she is earning thru other sources

It was important to learn that an individual must completely exhaust all assets in order to qualify for long term health assistance, OR purchase long term assistance insurance, which should include both inflation protection and waiver of premium benefits. So, if a person needs assisted living community, he/she will either need to pay out of pocket, have insurance to cover expenses, or exhaust all personal assets, so Medicaid will pay. In addition, the elderly are not eligible for Medicaid until they deplete all assets.

The author suggests that reader with assets start a HSA and put away $7500 per year for future medical expenses and maximize contributions to ROTH. After 65, the reader can use HSA to pay Medicare premiums of Medicare A and B.

Social security benefits may be taxable. Individual should apply 90 days before he/she wants to start receiving benefits check. There are 81 different strategies available for couples claiming benefits. Non-working spouse can claim benefits at the same time as working spouse. Two software calculators calculate the the best if 81 different strategies (social security analyzer or social security explorer).

The author also covers the role of annuities (annuities are for those that have money discipline problems) and the role of executors (managing assets, filing will, terminating credit card, paying debts/expenses). She encourages retirees to start small side businesses (selling photos and/or T-shirts) for income and provides websites, which are still active in 2025.

[Ed · Rating 3 out of 5]

Lots of good information but after reading the book I get the distinct impression the government wants us to keep working until we die. Taxes, income stream and health care are so much simpler in our earlier years working. Once we retire, either early, on time or late everything gets complicated. But it sounds like once you deal with the frustration and learning curve many people can have a good retirement.