The year you retire is a pivotal time to make final adjustments to your finances and a plan to spend down your assets. You also need to make important decisions about Social Security and health insurance. Here’s what you need to do if you plan to retire in 2018.

Set up health insurance. You don’t want to have any health insurance gaps when you retire. You can sign up for Medicare beginning three months before your 65 ^th birthday, and coverage can start the month you turn 65. If you plan to retire before age 65, remember to enroll in a plan through your state’s health insurance exchange or purchase health insurance through another source. “Individual health insurance policies are pretty expensive, and the premiums are an expense that is coming out of your pocket if you don’t qualify for Medicare just yet,” says Rianka Dorsainvil, founder and president of Your Greatest Contribution in Lanham, Maryland. “You want to understand how much that is and add that as a line item in your budget.”

[See: 10 Ways to Increase Your Social Security Payments.]

Decide when to claim Social Security. You don’t necessarily need to claim Social Security in the year you retire. Determine how much your monthly payments will decline if you start benefits before your full retirement age. There’s also an opportunity to increase your monthly Social Security payments if you delay claiming between ages 66 and 70. “Getting an 8 percent increase on your Social Security benefit without really taking any risk is a good return,” says Danny Michael, principal and founder of Satori Wealth Management in Los Angeles. “There are a lot of people who may not be getting 8 percent in their portfolio.” You can get a personalized estimate of your Social Security benefit at various sign up ages at ssa.gov/myaccount.

Tally your income. In addition to your Social Security benefit, calculate how much income you will receive from pensions, retirement account withdrawals and other income sources. “If you plan to retire this year or even within the next couple of months, you have to figure out your income,” Dorsainvil says. “Look at your various income sources, whether that is a pension, a 401(k) or 403(b) and also Social Security.”

Create a spending plan. Take a close look at your current expenses, and which costs might change in retirement. Compare your expenses to the cash flow you expect to have in retirement. “In the months leading up to retirement, think about what you are going to need to replace your paycheck and where that is going to come from,” says Eric Nelson, a chartered financial analyst and managing principal at Servo Wealth Management in Oklahoma City, Oklahoma. “Some of that is going to come from Social Security, you might have a pension, but the rest of that is going to come from your investment portfolio. How much of that nest egg are you going to have to take out on an ongoing basis, and are you going to be able to do that?” Some people need to take steps to boost their retirement income by working a year or two longer or taking on a part-time job in retirement. You can also reduce your monthly costs by downsizing to a less expensive house or apartment or eliminating conveniences you paid for while working that you won’t need in retirement.

[See: How to Max Out Your 401(k) in 2018.]

Roll over your 401(k). Decide whether you want to roll over your 401(k) balance to an IRA upon retirement. An IRA maintains the tax benefits of a 401(k) plan, but gives you more investment options and allows you to consolidate multiple 401(k) accounts into a single IRA. “If you have 10 different accounts, it’s a nightmare to try to start pulling from all these different places,” Nelson says. “Start to develop a plan for consolidation.”

Adjust your investment portfolio. You might find that you have less appetite for investment risks as you enter retirement and begin to take withdrawals from your retirement savings for living expenses. Many retirees sleep better at night if they keep enough cash to cover several year’s worth of living expenses in safe investments. “Maybe you don’t have the same willingness to ride out stock market declines as when you were working,” Nelson says. “Have at least two years of your income set aside in short-term bonds or cash.”

Look for lower fees. When you are making changes to your investment portfolio, look for low expense ratios on the funds you select. “High fees eat away at your performance,” Michael says. “Look at passive vehicles and exchange-traded funds that keep your fees low.”

[See: How to Pay Less Tax on Retirement Account Withdrawals.]

Strategize to minimize taxes. Your retirement tax rate will vary based on the type of accounts you take withdrawals from in retirement. Traditional 401(k) and IRA withdrawals are taxed as ordinary income, while Roth distributions in retirement are often tax free. Investments that generate long-term capital gains are generally taxed at a lower rate than ordinary income. “If you have an IRA and a taxable account, you want to put the stocks in your taxable account to take advantage of the preferable tax rates on stocks in your taxable accounts,” Nelson says. Retirees who maintain all three types of accounts will have some control over which accounts to draw from each year and how much tax they will owe.

Plan your new lifestyle. While it’s important to get your finances in order in the year you retire, make a little time to dream about how you will spend your days. Retirement provides opportunities to relax, travel and volunteer in your community, but retirement can also be socially isolating if you don’t make plans to join an organization or meet up with friends. “You are used to going into work Monday though Friday, and sometimes people retire and have absolutely nothing to do,” Dorsainvil says. “This is the perfect opportunity to start looking up classes that will get you out of the house for a few hours a day to learn a new skill or to go on that vacation that you always wanted to take. Now your time is your own.”

Emily Brandon is the author of “Pensionless: The 10-Step Solution for a Stress-Free Retirement.”

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How to Retire in 2018 originally appeared on usnews.com