62: PLAN AND EVALUATE - WHAT WILL YOU NEED TO FINANCIALLY SUPPORT YOUR RETIREMENT?
At 62 it is important to make any major purchases that you may have while you are still employed. Repairing or replacing expensive items such as roofs or cars becomes a cash flow consideration once you are retired and living on fixed income.
You want to try and pay down all of your debt before you retire especially any 401k loans. Loans need to be repaid to employers within 60 days of leaving employment otherwise it is considered a retirement distribution and is a taxable event.
Three years from retirement you want to understand what retirement is going to look like for you. Do you want to travel, pursue passions or hobbies, or spend more time with your grandkids? No matter what you want your retirement life to look like you should begin to prepare accordingly.
Another major situation to consider at 62 is your housing. Do you want to move to a different location, downsize, or remodel your current home? Perhaps you want to move closer to your grandchildren to spend as much time as you can with them. Think about what you want your housing situation to be for retirement because it is significantly easier to refinance a home mortgage when you are fully employed. If you need access to equity to make you desired living situation possible, now is the time to do it.
Additional resources and information:
If I retire at age 62, will I be eligible for Medicare at that time?
How much does early retirement reduce benefits?
Going back to work after retirement - The good, the bad, and the ugly.
Getting ready to retire? Here's a planning guide for the 5 years before your last day.