5 Best Retirement Cheat Codes, According to Experts

Retirement planning is a long game, and you win by consistently saving and investing during your working years. But along the way, certain tips and strategies can help your nest egg grow bigger and last longer, without too much effort on your part.

The catch? Most people don’t know these shortcuts exist — or they assume retirement investing is too complicated. That’s not true. A few smart moves can make a big difference, especially if you time them right and understand how they fit into your overall plan.

It’s time to hit the easy button. Think of these as the hidden power-ups in your retirement strategy. They’re simple to understand and backed by financial professionals who’ve seen what works in real life. Whether you’re in your 30s or your 60s, it’s not too late to start using them.

1. Don’t invest too conservatively

While being risk-averse might feel safe, playing it too conservatively with your retirement investments — even as retirement nears — could cost you over time.

That stands in contrast to an oft-repeated (but maybe outdated) retirement planning rule of thumb that recommends shifting to a bond- and fixed-income-heavy portfolio as retirement approaches.

More experts are acknowledging that while some safety is always necessary, a more nuanced and perhaps more equity-heavy approach is needed, especially if you end up living a long life.

“Many people view their retirement as the beginning of the last phase of their life,” says Noah Damsky, a CFA and principal at Marina Wealth Advisors. “It’s easy to lose sight of the fact it can mean living another 20–30 years.”

Damsky adds that being too conservative in your retirement plan “can leave a lot of money on the table.”

The key is balance. Many experts recommend leaving a big enough buffer zone in your portfolio of cash and low-risk investments to cover at least three to six years’ worth of living expenses to offset the risk of investing in stocks in retirement.

How to implement this cheat code

• Check in annually: Reassess your risk tolerance and asset allocation annually, especially as you approach retirement.
• Pick a later date: Target-date funds are popular 401(k) investments. Consider a target-date fund with a later retirement date. This fund will typically have a higher stock allocation, potentially leading to greater long-term growth.
• Set up a review: If you have a financial advisor, schedule a portfolio review to ensure you’re not leaving potential growth on the table.

2. Use multiple investment accounts

Relying on a single investment account, like a 401(k), might simplify your statements, but it can limit your savings — and increase your tax bill.

“Diversifying your accounts gives you more flexibility to utilize multiple income sources to help you best manage your taxes in retirement,” says Joe Conroy, CFP and owner of Harford Retirement Planners.

Your 401(k) gives you a tax break this year, but you’ll owe income tax on withdrawals in retirement. To balance this out, consider opening a Roth IRA, too. You’ll miss out on a lower tax bill next year, but you won’t pay any taxes on retirement withdrawals. Plus, you might be able to find less expensive exchange-traded funds (ETFs) and funds in a Roth IRA at an online broker than your workplace 401(k) can offer.

Conroy says having a taxable brokerage account is also a smart move.

“Instead of withdrawals being taxed as ordinary income, these accounts use capital gains tax rates, which can be lower,” says Conroy.

Gains on investments held for over a year inside a brokerage account are typically taxed at a lower long-term capital gains tax rate (often 15 percent), while traditional retirement account withdrawals are subject to ordinary income tax (most working people fall in the 22–24 percent tax bracket). Plus, withdrawals from retirement accounts prior to age 59 ½ incur a 10 percent IRS penalty.

Using a taxable account can be a good option if you need to pull money from your investments before retirement. You can save money on taxes (ironically) while your retirement savings continue to grow.

How to implement this cheat code

Understand how different investment accounts are taxed.

• Tax-deferred accounts (like traditional 401(k)s and IRAs): Lower your taxable income today but are taxed as ordinary income upon withdrawal.
• Tax-free accounts (like Roth IRAs): Contributions grow tax-free and are withdrawn tax-free in retirement.
• Taxable accounts (brokerage accounts): Realized gains on investments held over a year are subject to a 0, 15 or 20 percent tax rate. Realized gains on investments held for less than a year are subject to ordinary income tax rates.

3. Consider an annuity

Annuities often get a bad rap, in part because they’re complex and illiquid, and certain types are rife with fees. But if you’re looking for a cheat code to replace your paycheck in retirement, annuities offer a solution — albeit with some strings attached.

There are lots of different kinds of annuities out there, but a single-premium immediate annuity, or SPIA, is one of the more straightforward options on the market.

This type of immediate annuity lets you exchange a one-time payment for monthly income that lasts as long as you live. In this way, a SPIA can act as a paycheck replacement or a self-funded pension.

“Some companies also offer SPIAs with cost-of-living adjustments at fixed percentages,” says Mike Hunsberger, a CFP and owner of Next Mission Financial Planning.

Hunsberger recommends figuring out how much your minimum lifestyle expenses will be in retirement, and if an annuity makes sense for your situation, consider allocating that money to a SPIA to cover those expenses.

Doing so can allow you to be more aggressive with investments elsewhere in your portfolio because you’ll always receive that annuity income to cover your fixed living costs, says Hunsberger.

Hunsberger likes SPIAs for their low cost and simplicity. But not all annuities are created equal, so it’s wise to consult with a fiduciary — a financial advisor you pay to provide unbiased advice free from conflicts of interest — who can explain the pros and cons and help you explore your options.

How to implement this cheat code

4. Do a Roth IRA conversion

Retirement isn’t just about how much you save — it’s also about how much you pay in taxes. A Roth IRA conversion during what some experts call the “retirement income valley” can be a game changer for reducing your retirement tax bill.

The retirement income valley is the period after you stop working but before you start taking required minimum distributions (RMDs) at age 73. So if you retire at age 67, you have six years to do the conversion.

There’s a key advantage to timing the conversion this way: Your income is likely to be much lower in the valley.

“You’ll be in a lower tax bracket, which allows you to pull money out of tax-deferred accounts at much lower rates,” says Erik Goodge, a CFP and founder of uVest Advisory Group.

Consider this: If you make less than $48,475 in 2025 as a single filer ($96,950 for married filing jointly), you’ll pay between 10 and 12 percent in ordinary income taxes. Cross those thresholds, and a higher 22 percent tax rate starts to apply.

Why is a Roth IRA conversion so beneficial during this window? Once money is invested in a Roth IRA, withdrawals are tax-free and Roth IRAs aren’t subject to RMDs.

Over time, this strategy can save you thousands in taxes and leave a larger inheritance for your beneficiaries.

How to implement this cheat code

• Calculate your conversion amount: It’s best to convert just enough each year to avoid jumping to a higher tax bracket and paying more on each incremental dollar of converted money.
• Plan for taxes: Pay conversion taxes with money from outside the IRA to maximize growth in the Roth.
• Get help: Speaking with a financial advisor or CPA is also a good idea. A conversion can be tricky, and you want to ensure it won’t trigger unexpected tax consequences.

5. Work one year longer

Working just one extra year could add tens of thousands of dollars to your nest egg and reduce the chances of running out of money in retirement.

Consider this: If you earn $80,000 a year and save 20 percent of your income, that’s an extra $16,000 saved — not to mention the growth potential.

“You’re letting savings grow longer, saving more and spending less of your nest egg,” says Joseph Boughan, a CFP and managing member at Parkmount Financial Partners. “It’s the highest leverage thing you can do to improve your retirement nest egg.”

There are other perks of waiting to retire. Your Social Security benefits grow by about 8 percent for every year you delay claiming past your full retirement age, though that credit maxes out at age 70.

Not everyone has the luxury of delaying retirement. Health issues and caretaking responsibilities may force you to retire earlier than planned. But for those who can wait, the extra money can positively alter your financial outlook.

“Just one or two years can shift a plan from ‘at risk’ to reasonably in line with projections,” says Boughan.

How to implement this cheat code

• Adjust your goal: If your target retirement age is 67, consider working until 68 or part-time for a couple of years.
• Max out contributions: Take advantage of catch-up contributions in your 401(k) and IRA once you turn 50.
• Fine tune your plan: Use the extra time to plan your exit strategy by paying down debt and finalizing retirement plans.

Bottom line

Retirement planning doesn’t have to feel like navigating a maze. With these cheat codes in your playbook, you can level up your savings and unlock a smoother path to retirement. Remember, even simple moves — like working one more year or diversifying your accounts — can be game-changers.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.