Retiring in a Year? 3 Moves to Make Now.

When you've spent many decades in the workforce, being one year away from retirement might almost not feel real. But if you're beginning that final countdown, it's important to make the most of it. Here are some key moves to make with retirement only being 12 months out.

1. Get an estimate of your monthly Social Security benefit

There's a good chance Social Security will become an important income source you rely on once you retire. So it's important to know how much monthly benefit you're in line for.

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An easy way to get that information is to create an account on SSA.gov and check your most recent earnings statement. But also, understand that if you don't wait until full retirement age (which is 67 for anyone born in 1960 or later) to file for Social Security, your monthly benefit will be reduced.

It's a good idea to run the numbers so you can decide if it makes financial sense to claim Social Security right away versus wait. If you have savings to live on, you may not need to file for Social Security as soon as you retire. That could set you up for larger monthly checks for life.

2. See how much you've saved -- and what annual income it gives you

If you're a year away from retirement, you probably have an idea as to how much you've saved. And a quick IRA or 401(k) checkup could give you a concrete answer.

But don't just look at a (hopefully) large number on your screen. Instead, figure out how much annual income your savings will provide you with.

For example, if you have $1.2 million and decide to withdraw at a rate of 4% per year, that's $48,000 annually. You'll need to decide if you're happy with that. If not, you may want to make some spending adjustments in the coming year to boost your nest egg and buy yourself more freedom later on.

3. Check up on your investments

If retirement is right around the corner, now's not the time to have 90% of your portfolio in stocks. In fact, it's a good idea to scale back a few years ahead of retirement. If you haven't done so yet, start moving some of your assets out of stocks and into more stable assets, like bonds and cash.

It's also a good idea to retire with a year to two years' worth of living costs in cash in case the market tanks and a good chunk of your portfolio needs to be left alone to ride things out. If you're not there yet, sell some assets accordingly.

At the same time, it's important to make sure your portfolio is well diversified. The stock portion, for example, should offer you exposure to different companies and industries. If you feel you need more diversification, an S&P 500 ETF might do the trick.

You may be excited to retire and bring your career to an end. But make sure to tackle these moves in the coming months so you're able to get your financial house in order first.

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