5 Things Vancouver, WA Residents Should Do 5 Years Before Retirement

5 Things Vancouver, WA Residents Should Do 5 Years Before Retirement

5 Things Vancouver, WA Residents Should Do 5 Years Before Retirement

With just five years to go, it’s time to shift from saving to strategic planning. Vancouver residents benefit from Washington’s tax-friendly environment, but smart moves now can still make a major difference. Here are five things to prioritize:

1. Fine-Tune Your Retirement Budget

Start with a realistic picture of your retirement expenses—housing, healthcare, travel, and daily living. Vancouver’s cost of living is moderate, but rising housing and insurance costs can catch retirees off guard. Compare projected expenses to your income sources: Social Security, retirement accounts, and any part-time work or rental income.1

2. Create a Tax-Efficient Withdrawal Plan

Washington has no state income tax, which is a major win. Still, federal taxes apply to retirement withdrawals. Begin mapping out a withdrawal strategy—consider the order of tapping taxable, tax-deferred, and Roth accounts to manage your tax bracket and avoid surprises when Required Minimum Distributions (RMDs) begin.2

3. Maximize Catch-Up Contributions

If you’re age 50 or older, you can contribute more to your retirement accounts. For 2025, this includes an extra $7,500 for 401(k)s and $1,000 for IRAs. Take advantage of this window while you’re still earning to strengthen your retirement cushion.3

4. Plan for Healthcare and Insurance Gaps

If you plan to retire before 65, you’ll need to bridge the gap before Medicare kicks in. Research ACA plans and income thresholds for subsidies. Once on Medicare, compare supplemental plans available in Washington. Also, you may also want to review long-term care insurance.4

5. Think About Where You’ll Live

If you plan to stay in Vancouver, consider paying down your mortgage or refinancing to lower expenses.5 If you’re thinking of relocating, be aware of how a move to Oregon could change your tax situation—income is taxed there.6 For many, staying in tax-free Washington while shopping or visiting Portland hits the sweet spot.

Final Word

Five years is enough time to smooth out bumps, optimize taxes, and build flexibility into your retirement plan. For Vancouver residents, the combination of no income tax and regional access to urban and natural amenities makes it an ideal base—but only if you plan wisely.

References

  1. https://www.rentcafe.com/cost-of-living-calculator/us/wa/vancouver/
  2. https://www.fidelity.com/viewpoints/retirement/tax-savvy-withdrawals
  3. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
  4. https://www.healthcare.gov/retirees/
  5. https://www.columbiacu.org/home-loans/
  6. https://vcmi.net/financial-guide-to-the-oregon-and-washington/

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