If you’re planning to retire at 65, you’re approaching what’s traditionally been considered “full” retirement age—the milestone when Social Security, Medicare, and all the systems you’ve been paying into for decades finally align to support your retirement lifestyle. 

At 65, your retirement planning landscape expands to include new opportunities and systems that weren’t available before. You’re asking both “How do I continue building wealth strategically?” and “How do I make this wealth work most effectively to accomplish everything I want to do with it?” 

Your financial planning focus naturally centers on managing portfolio distributions efficiently, coordinating multiple benefit systems, and implementing sophisticated wealth transfer strategies while you’re still healthy and able to make these decisions. 

How much do you need in your portfolio to retire at 65? 

Retiring at 65 allows for more traditional withdrawal rates since you have immediate Medicare cost savings and full Social Security benefits.  

However, high earners have some unique considerations, including Medicare premium surcharges and the opportunity to optimize substantial Required Minimum Distributions in just a few years. 

Here’s what you may need based on different spending levels, assuming a 4% withdrawal rate.  

Annual Expenses	Portfolio Needed (No Bridge Income)	Portfolio with $100K Bridge Income
$100,000	$2.5 million	$1.0 million
$150,000	$3.8 million	$2.3 million
$200,000	$5.0 million	$3.5 million
$300,000	$7.5 million	$6.0 million
$500,000	$12.5 million	$10.0 million

The 15-20x expense rule becomes much more accurate at 65 when you factor in Medicare cost advantages. Someone spending $200,000 annually might need $4 million+ when accounting for Social Security supplementation and the significant savings from Medicare versus private insurance. 

Keep in mind that, depending on your date of birth, large Required Minimum Distributions may begin at age 73, creating opportunities for strategic tax planning. If you have portfolios exceeding approximately $2.6 million in tax-deferred accounts, you’ll be managing RMDs exceeding $100,000 annually, which creates both tax planning considerations and opportunities for continued wealth optimization. 

New financial roadblocks to plan for when retiring at 65 

At 65, retirement planning evolves to include strategic optimization and purposeful distribution alongside continued growth opportunities. 

IRMAA 

Medicare eligibility eliminates the uncertainty of healthcare coverage, but it introduces some new considerations you’ll want to understand.  

Medicare includes income-related premium surcharges, called IRMAA (Income-Related Monthly Adjustment Amount), which can significantly impact your healthcare costs. These surcharges apply to individuals with 2023 income above $106,000 or married couples above $212,000. 

For 2025, Part B surcharges range from $74 to $443.90 monthly, while Part D surcharges range from $13.70 to $85.80 monthly. This means high-earning retirees could pay an additional $530 per month ($6,360 annually) on top of standard Medicare premiums. 

What makes IRMAA particularly challenging for retirement planning is the two-year lag time. Your 2025 Medicare premiums are based on your 2023 income, which creates timing complications for strategies like Roth conversions and large withdrawals.  

Additionally, you’ll need to make decisions about Medicare supplement insurance (Medigap) versus Medicare Advantage plans that will affect your coverage for years to come. Supplement premiums provide predictable costs and broader provider networks, while Advantage plans offer lower premiums but typically have more restricted networks. 

You’ll want to coordinate your choices with HSA usage strategies. HSAs become particularly powerful accounts after 65, allowing tax-free withdrawals for qualified medical expenses or taxable withdrawals for any purpose without penalties. 

Required Minimum Distributions  

Substantial retirement account balances create RMD requirements beginning at age 73. Portfolios exceeding $1 million in tax-deferred accounts will generate RMDs exceeding $40,000 annually, increasing each year based on life expectancy tables. 

The key is planning now, while you still have eight years to implement strategies that can optimize the tax impact of these distributions. This creates opportunities for continued wealth optimization rather than just tax minimization. Large RMDs can also trigger or increase IRMAA surcharges, making coordination between RMD planning and Medicare premium management essential. 

Qualified longevity annuity contracts (QLACs) offer one strategic approach worth considering. QLACs allow up to $200,000 of retirement account assets to be invested in deferred annuities that begin payments at age 85. This creates opportunities for managing Required Minimum Distribution calculations while providing a source of income later in life.  

Qualified charitable distribution planning becomes available at age 70½, allowing up to $105,000 annually to be donated directly from IRAs to qualified charities without generating taxable income. This satisfies RMD requirements while avoiding tax consequences—a powerful strategy for charitably inclined retirees. 

Tips to keep optimizing your wealth  

At 65, your financial strategies focus on optimizing wealth growth, managing tax-efficient distributions, and implementing sophisticated planning techniques while you have the health and time to maximize these opportunities. 

Keep making retirement contributions 

If you’re still working, you have valuable opportunities to maximize your tax-advantaged savings: 

• 401(k) contributions: $23,500 plus $7,500 catch-up in 2025 
• IRA contributions: $7,000 plus $1,000 catch-up 
• HSA maximization: $4,300 individual or $8,550 family coverage 

These provide opportunities for continued tax-advantaged wealth building while potentially reducing your current-year income for IRMAA calculation purposes—a valuable double benefit that becomes particularly strategic at this stage. 

Refresh your investment approach 

Asset allocation becomes particularly strategic at 65. You’ll want to maintain growth potential for long-term wealth building while having adequate liquidity for distributions.  

Consider a glide path approach that maintains meaningful equity exposure that gradually adjusts your asset allocation over time. Many retirees keep 60-70% of their portfolio in equities to combat inflation and have potential market growth.  

Tax-loss harvesting in taxable accounts can provide ongoing benefits, generating losses to offset gains while maintaining your desired asset allocation. 

Claim Social Security at the right time 

At 65, your Social Security claiming options depend on when you were born. 

If you were born before 1960, you may have already reached or passed full retirement age (which ranges from 65 to 66 years and 10 months). If you were born in 1960 or later, your full retirement age is 67, meaning at 65, you’re still two years away from receiving your full benefit amount. 

You can claim Social Security as early as 62, but benefits are permanently reduced by approximately 25-30% compared to full retirement age benefits. If you’re 65 and born in 1960 or later, claiming now would still be considered “early” with reduced benefits. 

For every year you delay claiming past full retirement age, your benefits increase by approximately 8% annually. This can result in benefits that are 24-32% higher than your full retirement age amount, depending on your birth year—a significant boost that lasts for life. 

If you’re married, coordinating claiming strategies between spouses becomes particularly valuable when you consider different birth years and full retirement ages. Spousal benefits and survivor benefits are based on the higher earner’s benefit amount and can last for decades. 

The key is understanding where you stand relative to your specific full retirement age and viewing Social Security as one component of your overall retirement income strategy, coordinating it with portfolio withdrawals, RMD planning, and IRMAA management. 

Look into legacy planning opportunities 

At 65, you have valuable opportunities to implement wealth transfer strategies that may have been in the planning stages for years. Whether it’s grandchildren’s education funding, family business succession, or charitable legacy planning, you can coordinate active wealth transfer while continuing to build wealth for your own goals. 

Many families at this stage find themselves balancing immediate family support with long-term wealth transfer objectives. Generation-skipping transfer tax exemptions allow substantial wealth transfers to grandchildren, while charitable giving strategies like donor-advised funds provide immediate tax deductions with flexible distribution timing.  

The key is coordinating these strategies with your other retirement income sources and upcoming Required Minimum Distributions to optimize the timing and tax benefits. 

Create your comprehensive wealth plan 

Your retirement at 65 represents an exciting new chapter where decades of planning and saving create opportunities for both enjoying your wealth and continuing to build it strategically. It’s about optimizing all the systems and benefits you’ve earned while creating a legacy that reflects your values and supports the people and causes you care about. 

If you’re ready to explore how to optimize your wealth strategies and distribution approaches at this important milestone, contact BPM’s wealth management team to develop comprehensive strategies that coordinate Medicare benefits, tax optimization, RMD planning, and legacy implementation tailored to your specific situation. 

This material is for informational purposes only and is not intended to provide specific advice or recommendations for any individual. This information is not intended for use as tax advice. The examples given are hypothetical and are for illustrative purposes only. Actual results may vary from those illustrated. Guarantees are based on the claims-paying ability of the issuing company. 

Securities offered through Valmark Securities, Inc. Member FINRA, SIPC | Investment Advisory services offered through BPM Wealth Advisors, LLC and/or Valmark Advisers, Inc. each an SEC Registered Investment Advisor | BPM LLP and BPM Wealth Advisors, LLC are entities separate from Valmark Securities, Inc. and Valmark Advisers, Inc.  

The Nevada Employee Savings Trust (NEST) Program officially launched on July 1, 2025, marking a pivotal moment for Nevada employers and their workforce. For business owners in the Silver State, this new requirement could significantly impact operations and employee benefits strategy. 

Understanding the challenges of running a business while caring for employees’ future, this guide aims to help navigate the transition smoothly. Here’s what business owners need to know about NEST and how it might affect their operations. 

What is the Nevada Employee Savings Trust Program? 

The NEST Program represents Nevada’s commitment to addressing the retirement savings gap that affects an estimated 500,000 Nevadans who currently lack access to employer-sponsored retirement plans. This state-facilitated program allows employees to save post-tax dollars directly from their paychecks through state-administered individual retirement accounts (IRAs). 

Here’s how it works: If a business has six or more employees, has operated for at least 36 months, and doesn’t currently offer a tax-favored workplace retirement plan, it’s required to either enroll workers in NEST or provide an alternative retirement savings option through a chamber of commerce or trade association. 

The program features automatic enrollment for eligible employees at a default contribution rate of 5%, though workers can opt out if they choose or elect their own contribution rate. Employees maintain control over their accounts and can withdraw contributions at any time to meet financial emergencies, consistent with federal law. 

Understanding obligations as a Nevada employer 

Who must comply with NEST? 

A business falls under the NEST mandate if it meets these criteria: 

• Employs six or more workers 
• Has been in business for at least 36 months 
• Doesn’t currently offer a tax-favored workplace retirement plan 
• Operates within Nevada 

Which employees are covered? 

The program covers employees who: 

• Have been employed for 120 days or more 
• Are at least 18 years of age 
• Receive wages or other compensation 

Employee exemptions 

Certain employees are not covered by NEST, including those who: 

• Work for federal, state, or other government entities (counties, municipal corporations) 
• Make contributions to a Taft-Hartley multiemployer pension trust fund 
• Are covered under the federal Railway Labor Act 

Compliance options 

Employers have two primary paths to meet the NEST requirement: 

Option 1: Participate in NEST Automatically enroll eligible employees in the state-run program, which handles investment management and account administration. 

Option 2: Offer an alternative Implement a tax-favored workplace retirement plan or join a program offered through a trade association or chamber of commerce. 

Frequently asked questions about NEST 

What are employers’ responsibilities? 

Covered employers must automatically enroll eligible employees and share program information with their workforce. They can choose to use payroll providers or manage contributions directly through the NEST employer portal via ACH transfer or Excel file uploads. 

What is the default contribution rate? 

The NEST Program sets a default contribution rate of 5% of employee compensation, though employees can choose different rates or opt out entirely. 

What investment options are available? 

Employees can choose from several investment options based on their risk preferences, though specific details about the number and types of investments are determined by the Board of Trustees. 

Are employee records confidential? 

Yes, participant information is deemed confidential and not subject to public records requests. 

How is the program governed? 

A six-member Board of Trustees serves as fiduciary to the Trust, including the State Treasurer (Chair), Lieutenant Governor, and appointees representing employers, investment experience, retirees, and small business. The Nevada State Treasurer’s Office provides administrative support. 

Do employers need payroll providers? 

No, while many companies use payroll providers for NEST contributions, it’s not required. Employers can manage contributions directly through the NEST employer portal or by uploading Excel files. 

Why consider an employer-sponsored plan instead 

While NEST provides a valuable service for employees without retirement benefits, establishing an employer-sponsored plan offers several compelling advantages: 

Greater control and customization 

With their own plan, employers can tailor the program to match company culture and employee needs. This includes selecting investment options, setting contribution parameters, and designing features that align with business goals. 

Higher contribution limits 

Employer-sponsored 401(k) plans allow significantly higher contribution limits than IRA-based programs. For 2025, employees can contribute up to $23,500 to a 401(k), with additional catch-up contributions for those 50 and older. For 2026, employees can contribute up to $24,500 to a 401(k), with an additional $8,000 catch-up contribution available for those aged 50 and older. 

Enhanced employee benefits 

Employers can offer matching contributions, profit-sharing arrangements, and other features that boost employee engagement and retention. These benefits often serve as powerful recruitment and retention tools. 

Tax advantages for businesses 

Employer contributions to qualified retirement plans are typically tax-deductible business expenses, providing immediate tax benefits for companies. 

Pre-tax contribution options 

Unlike NEST’s post-tax contribution structure, employer-sponsored plans typically offer pre-tax contribution options, which can provide immediate tax benefits for employees. 

Making the right choice for businesses 

Deciding between NEST participation and implementing a retirement plan requires careful consideration of several factors: 

• Budget for employee benefits 
• Complexity willing to manage 
• Long-term business and workforce goals 
• The competitive landscape in the industry 

Some businesses find NEST’s simplicity appealing, especially if they’re not ready for the administrative responsibilities of their own plan. Others view a comprehensive retirement benefit as a strategic investment in their workforce. 

Implementation considerations and next steps 

Regardless of which path employers choose, taking action now is crucial. Here are key steps to consider: 

Assess current situation 

Review employee count, business tenure, and existing benefits to determine compliance status under the six-employee threshold. 

Evaluate options 

Consider the costs, benefits, and administrative requirements of both NEST participation and alternative retirement plans. 

Plan timeline 

Factor in the 120-day employee tenure requirement, implementation time, employee communication needs, and any payroll system changes required. 

Communicate with employees 

Workers deserve to understand how these changes will affect them. Clear, timely communication helps build trust and participation, especially regarding the automatic enrollment feature and 5% default contribution rate. 

How BPM can support retirement benefits strategy 

Navigating Nevada’s new retirement savings landscape doesn’t have to be overwhelming. BPM helps businesses understand the NEST requirements and evaluate all available options. 

Whether employers are leaning toward NEST participation or considering an employer-sponsored plan, BPM’s team can guide them through the decision-making process. The firm helps businesses understand the financial implications, administrative requirements, and strategic considerations for each option. 

If businesses decide to implement their own retirement plan, BPM provides comprehensive support from initial design through ongoing administration. The goal is to maximize the value of the investment while minimizing the administrative burden on teams. 

Employees’ financial security matters, and the decisions made today will impact their retirement readiness for decades to come. The complexity of compliance shouldn’t prevent businesses from making the best choice for their company and their team. 

Ready to explore options? Contact BPM today to discuss how the firm can help navigate Nevada’s retirement savings requirements and create a benefits strategy that works. BPM can help turn this mandate into an opportunity for companies and their employees. 

The Life Sciences sector continues to confront a dynamic landscape marked by technological innovation, evolving regulatory frameworks, and shifting capital dynamics. While venture funding has moderated from peak levels, strategic M&A activity and selective public market transactions signal continued confidence in high-quality assets.  

As biotech, medtech, diagnostics, and pharmaceutical companies position themselves for sustainable growth, several critical trends are reshaping how these organizations operate, compete, and create value. 

Six Areas Influencing the Industry Next Year 

1. Precision and Personalized Medicine Takes Center Stage

The expansion of precision and personalized medicine represents one of the most significant shifts in therapeutic development and patient care. Advances in genomics, companion diagnostics, and targeted therapies are enabling treatments tailored to individual patient profiles, moving away from the traditional one-size-fits-all approach. 

This trend is accelerating commercial opportunities but also raising operational complexity. Companies must invest in robust data infrastructure to capture and analyze patient-level information, while simultaneously building partnerships with diagnostic providers and genetic testing laboratories. The convergence of therapeutic development with diagnostic capabilities is no longer optional; it’s becoming a competitive necessity for organizations seeking to differentiate their pipelines and demonstrate clinical value. 

2. Digital and Decentralized Clinical Trials Alter Development Timelines 

Clinical trial design is undergoing fundamental transformation through digitalization and decentralization. Decentralized Clinical Trials (DCTs) leverage telemedicine, wearable devices, and home-based monitoring to expand patient access, improve retention, and accelerate enrollment timelines. 

The shift toward digital trials creates new operational and regulatory considerations. Organizations must: 

• Establish technology partnerships 
• Implement secure data collection systems 
• Ensure compliance with evolving guidance on remote monitoring and patient privacy 

While DCTs offer significant advantages in speed and reach, they require upfront investment in digital infrastructure and careful change management to ensure sites, investigators, and patients can effectively participate in these new models. 

3. Biomanufacturing Scaling and Supply Chain Resilience Are Priorities 

The proliferation of novel modalities (including cell and gene therapies, RNA-based treatments, and complex biologics) is placing unprecedented demands on manufacturing capabilities. These advanced therapies require specialized facilities, sophisticated quality systems, and highly trained personnel that are in limited supply. 

Companies are responding by: 

• Securing flexible manufacturing partnerships 
• Diversifying their contract manufacturing organization (CMO) relationships 
• In some cases, making strategic investments in internal capacity 

Supply chain resilience has moved from a back-office concern to a board-level priority, particularly as regulatory scrutiny and geopolitical trade dynamics introduce additional uncertainty into global manufacturing strategies. Organizations that can demonstrate agile, redundant, and compliant manufacturing capabilities will be better positioned to commercialize their pipelines successfully. 

4. Value-Based Contracting Pressure Intensifies Across Markets 

Payers worldwide are demanding greater evidence of real-world outcomes before committing to premium pricing for new therapies and devices. Value-based contracting (where reimbursement is tied to demonstrated patient outcomes rather than volume) is becoming the norm rather than the exception. 

This shift requires Life Sciences companies to rethink their commercial models, pricing strategies, and post-market evidence generation. Organizations must develop sophisticated outcomes-tracking systems, build capabilities in health economics and outcomes research (HEOR), and create flexible contracting structures that align with diverse payer requirements across geographies. The ability to demonstrate and capture value in real-world settings is increasingly determining market access and commercial success. 

5. Federal Research Funding Constraints Reshape Innovation Landscape 

Throughout 2025, the Trump administration has implemented significant changes to federal science funding that are fundamentally altering the research ecosystem for life sciences companies. The National Institutes of Health scaled back new grant awards by approximately $2.3 billion in the first nine months of the year—a roughly 28% contraction—with the biggest shortfalls hitting infectious disease research, cardiovascular and pulmonary studies, and basic biological research.  

Beyond direct funding cuts, the administration introduced a 15% cap on indirect costs for NIH grants, a dramatic reduction from the negotiated rates of 30-45% that research institutions typically receive to cover facilities, administration, and infrastructure expenses. While federal courts have temporarily blocked some aspects of these policies, the volatile funding climate has created widespread uncertainty across academic institutions and their commercial partners. 

The ripple effects extend directly into the biotech sector’s innovation pipeline. Venture investors warn that cutting federal support for basic science threatens the foundation of drug development, as early academic discoveries typically provide the basis for startup formation. Enrollments in PhD programs for life and biomedical sciences have flatlined, and early-career grant awards fell to their lowest levels since 2016—a trend that will constrain the scientific workforce for years to come.  

Biotech companies are responding to investor skittishness by reducing development programs and staff, with some industry leaders warning that these cuts could hand global biotech leadership to China. The administration’s stated goal of achieving better “geographic balance” in research funding adds another layer of uncertainty for established life sciences hubs. 

Life sciences companies should reassess their R&D strategies to account for diminished federal research partnerships. Organizations historically reliant on academic collaborations and NIH-funded talent pipelines may need to diversify their discovery engines through expanded industry partnerships, international research alliances, or increased internal basic research capabilities.  

Companies with strong cash positions should evaluate opportunities to acquire promising technologies from academic institutions facing funding pressure. Additionally, businesses should monitor how funding redistribution affects regional talent availability and consider how shifts in the academic research landscape might create new competitive advantages—or vulnerabilities—in specific therapeutic areas or technology platforms. 

6. Regulatory Focus on AI and Algorithms in Medical Devices Sharpens 

As artificial intelligence and machine learning become embedded in medical devices and diagnostic tools, regulatory agencies are developing more sophisticated frameworks to evaluate these technologies. The FDA and international counterparts are issuing guidance on algorithm validation, post-market surveillance of AI systems, and transparency requirements for machine learning models. 

Device manufacturers must prepare for heightened regulatory expectations around algorithm performance, bias testing, and ongoing monitoring of AI-enabled products. This includes investing in regulatory affairs talent with digital health fluency, establishing robust quality management systems for software-as-a-medical-device (SaMD), and building relationships with regulatory bodies early in the development process. Companies that proactively address these regulatory requirements will avoid costly delays and demonstrate commitment to patient safety. 

Learn more about our Life Science Industry

Strategic Imperatives for Life Sciences Leaders 

To capitalize on these trends and navigate industry headwinds, Life Sciences executives should consider the following actions: 

• Invest in Digital Therapeutics and Data Platforms – Build or acquire capabilities that enable patient-level data capture, analysis, and therapeutic personalization 
• Secure Flexible Manufacturing Partnerships – Diversify CMO relationships and ensure supply chain resilience for novel modalities with specialized production requirements 
• Adapt Pricing Models to Outcomes – Develop contracting frameworks that tie reimbursement to real-world performance and build HEOR capabilities to support value demonstrations 
• Prioritize Regulatory and Quality Talent – Hire professionals with digital health, AI/ML, and advanced therapy regulatory experience to navigate evolving compliance landscapes 
• Accelerate Genomics and Companion Diagnostics Programs – Integrate diagnostic capabilities into therapeutic development strategies to enable precision medicine approaches

How BPM Can Support Your Strategic Objectives 

BPM works alongside Life Sciences organizations to address the financial, operational, and strategic challenges created by these industry trends. Our integrated teams provide accounting, tax planning, audit assurance, and advisory services tailored to the unique needs of biotech, medtech, diagnostics, and pharmaceutical companies at every stage of growth.  

Whether you’re navigating complex M&A transactions, implementing value-based contracting models, scaling manufacturing operations, or preparing for regulatory milestones, BPM delivers practical guidance to help you achieve your objectives. Contact us to learn how we can support your organization’s success in this dynamic environment. 

As we enter 2026, the M&A landscape is poised for acceleration. After several years of deal activity constrained by elevated interest rates and economic uncertainty, market conditions are improving—but complexity is intensifying. Deal-makers face a paradox: more opportunities are emerging, yet the scrutiny required to execute successful transactions has never been higher. 

Exploring the Top 4 M&A Trends for 2026 

The coming year will reward those who approach M&A with strategic clarity, robust diligence processes, and the agility to navigate evolving market dynamics. Here are four defining trends shaping the M&A environment in 2026. 

1. Financing Conditions Improve, but Scrutiny Remains 

The interplay between economic conditions and M&A activity continues to drive deal flow. Forecasts show a clear uptick in both transaction volume and deal value as financing conditions improve and buyers look to consolidate market positions. Cost of capital and credit availability, however, remain critical determinants of deal structure and returns. 

As one recent analysis notes, “The interplay between economic conditions and M&A activity remains a critical area for businesses to monitor.” While private credit alternatives and bridge financing options have expanded, buyers can no longer rely on cheap debt to paper over valuation gaps. Instead, successful acquirers are taking a more disciplined approach—running multiple financing scenarios during deal modeling, locking in favorable terms earlier in the process, and stress-testing leverage assumptions against various rate environments. 

The financing landscape demands that deal teams revisit covenant tolerances and build in flexibility for both hawkish and easing rate scenarios. Organizations that proactively secure commitment letters and explore private credit alternatives position themselves to move quickly when the right opportunity emerges. 

2. Private Equity Activity Accelerates Integration Pressures 

Private equity activity and exits are rebounding, fueling significant deal flow through platform exits, add-on acquisitions, and industry rollups. This creates both heightened competition for quality assets and increased focus on post-deal integration to deliver promised synergies. 

PE firms are deploying substantial dry powder, particularly targeting companies with strong operating leverage and proven management teams. But as deal velocity increases, integration execution becomes the difference between value creation and value destruction. Talent retention emerges as a recurring integration risk, especially in acquisitions where intellectual capital drives business value. 

Forward-thinking acquirers are addressing these risks upfront by: 

• Building retention packages and key-person plans directly into term sheets for talent-dependent targets 
• Developing comprehensive integration playbooks covering finance, HR, sales, and technology functions with clear KPI milestones 
• Structuring earn-outs and governance provisions during deal negotiation to align stakeholder incentives from day one 

3. Strategic Buyers Chase AI and Technology Capabilities 

Industry focus continues shifting toward technology-enabled deals, with AI, data infrastructure, software, and cybersecurity leading transaction activity. Buyers increasingly pursue tuck-in acquisitions that add AI capabilities or meaningfully improve competitive positioning against emerging rivals. 

According to recent market analysis, PE-backed technology transactions have already exceeded last year’s total in deal value, with particular momentum in data centers, AI applications, and cloud infrastructure. The market opportunity extends across sectors as companies in traditional industries seek to acquire technical capabilities rather than build them organically. 

This trend requires acquirers to refine their evaluation frameworks. Rather than chasing one-off revenue lifts, successful deal-makers prioritize transactions that deliver durable strategic capabilities: proprietary data sets, machine learning models, scalable cloud infrastructure. Quick strategic teardown templates that assess target IP, data assets, and licensing risks become essential tools. Many buyers are adopting “buy and build” strategies to rapidly gain scale in high-demand technology subsectors. 

4. Cybersecurity Emerges as a Deal Showstopper 

Cyber risk has evolved from a diligence checklist item to a potential deal-breaker. Buyers now routinely include specific cybersecurity representations, warranties, and pricing adjustments in transaction agreements. Post-deal cyber incidents can materially erode value, making pre-transaction cyber health assessments non-negotiable. 

Leading practice now demands: 

• Formal pre-deal cyber assessments including penetration testing, controls inventories, incident histories, and data mapping 
• Clear remediation roadmaps with escrow or indemnity provisions for unresolved vulnerabilities 
• Integrated IT and cyber integration plans with defined timelines, ownership, and budgets established before deal signing 

Organizations that treat cybersecurity as a strategic priority rather than a compliance exercise protect deal value and position themselves for smoother post-close integration. 

Learn more about our M&A Tax Services

Strategic Imperatives for 2026 

To capitalize on the M&A opportunities ahead while managing heightened complexity, business leaders should focus on: 

• Financing preparedness: Model multiple rate scenarios, explore diverse financing sources, and move quickly to lock in favorable terms 
• Integration excellence: Build comprehensive playbooks before deals close, with particular attention to talent retention and technology integration 
• Strategic capability building: Prioritize acquisitions that deliver lasting competitive advantages in AI, data, and technology 
• Cyber vigilance: Make robust cybersecurity assessments mandatory and integrate cyber planning into deal timelines 

How BPM Can Help 

The 2026 M&A environment rewards preparation, discipline, and strategic clarity. BPM’s transaction advisory team provides comprehensive support across the deal lifecycle—from target evaluation and quality of earnings analysis through integration planning and post-close optimization. Our integrated approach combines financial due diligence, and cybersecurity assessment to help clients navigate complexity and maximize transaction value. 

“The uptick in clients working with us to prepare for a sale signals a promising 2026 for our buyer universe.” – Craig Hamm 

Whether you’re exploring strategic acquisitions, preparing for a liquidity event, or evaluating partnership opportunities, our team can help you make informed decisions with confidence. Contact us to discuss how we can support your M&A objectives in 2026. 

Tariff policies shift with political winds, leaving consumer businesses scrambling to protect their margins. One quarter, your import costs remain stable. The next, new trade restrictions threaten to upend your entire supply chain. This volatility has become the norm rather than the exception, and companies that wait to react often find themselves at a disadvantage.  

Smart businesses don’t just respond to tariff changes, they build resilience into their operations before disruptions hit.  

5 Strategies for Managing Tariff Uncertainty for Consumer Businesses 

This article explores practical strategies for managing tariff uncertainty, from supply chain diversification to pricing models that can withstand sudden cost fluctuations. 

1. Assess Your Exposure Before Crisis Hits 

You can’t protect your business from risks you haven’t identified. Start by mapping every product line to its country of origin and understanding which tariff codes apply to your imports. Many companies discover they’re more vulnerable than they realized once they complete this analysis.  

Calculate what a 10%, 25%, or even 50% tariff increase would mean for each product category. Run these scenarios against your current margin structure. This exercise reveals which products can absorb cost increases and which ones put your profitability at risk. 

Document your findings in a format your team can update regularly. Trade policies evolve constantly, and your risk assessment should evolve with them. 

2. Diversify Your Supply Chain Strategically 

Relying on a single country for your products leaves you exposed to that nation’s trade relationships. Companies that source from multiple regions can shift production when tariffs hit specific countries. 

This doesn’t mean you need to immediately establish relationships in five new countries. Start by identifying two or three alternative sourcing locations for your highest-risk products. Research the manufacturing capabilities, quality standards, and logistics infrastructure in these regions. 

Consider nearshoring options that might offer shorter lead times and reduced transportation costs alongside tariff benefits. Mexico, Central America, and other locations close to major markets have become increasingly attractive as companies rethink their supply chains. 

Remember that diversification takes time to implement. Begin building these relationships now, even if you don’t need them immediately. 

3. Build Flexibility into Your Contracts 

Long-term contracts with fixed pricing sound great until tariffs change overnight. Your agreements with both suppliers and customers should account for significant cost fluctuations beyond anyone’s control. 

Include tariff adjustment clauses in supplier contracts that outline how unexpected trade policy changes will be handled. These provisions should specify what triggers an adjustment, how you’ll calculate the impact, and what documentation you’ll require. 

On the customer side, consider moving away from rigid annual pricing agreements. Quarterly reviews or cost-adjustment mechanisms tied to tariff changes help you maintain margins without surprising your buyers with sudden price increases. 

4. Develop Dynamic Pricing Strategies 

Static pricing models crumble under tariff pressure. You need pricing strategies that can flex with changing costs while keeping your products competitive. 

Some companies implement tiered pricing based on order volume and timing. This approach rewards customers who commit to larger purchases while giving you room to adjust prices for smaller orders as costs change. 

Others use index-based pricing tied to specific cost inputs. When tariffs increase your landed costs by a measurable amount, your prices adjust accordingly based on a predetermined formula. This transparency helps maintain trust with customers during difficult conversations about price increases. 

Test your pricing models against various tariff scenarios to help ensure they’ll work when you need them most. 

5. Monitor Policy Changes Actively 

Trade policy doesn’t announce itself with months of warning. You need systems in place to catch changes quickly and assess their impact on your business. 

Subscribe to trade publications and government updates relevant to your industry. Assign someone on your team to monitor these sources regularly, not just when a crisis erupts. 

Join industry associations that track policy developments and advocate for their members. These groups often have advance insight into proposed changes and can help you understand the implications faster than you could working alone. 

Learn more about our Consumer Business Industry Solutions

Partner with Professionals Who Understand Your Challenges 

The strategies outlined here require significant analytical work, industry knowledge, and ongoing attention. BPM works with consumer businesses to develop tariff management strategies that protect profitability without sacrificing growth. Our team helps companies assess their exposure, model different scenarios, and implement the financial and operational changes needed to thrive despite trade uncertainty. 

We don’t just offer advice, we work alongside your team to execute these strategies and adjust them as conditions change. To discuss how we can help you build a more resilient operation, contact us. 

 

Most growing businesses can tell you their revenue and profit margins, but few can quantify the return on their finance function.  

Understanding the true ROI of a full-service outsourced accounting partner means looking beyond cost savings to measure the business outcomes that drive growth, reduce risk, and free up leadership to focus on what matters most. 

Why ROI Matters When Evaluating Your Finance Function 

For growing businesses, the finance function is more than a back-office necessity—it’s a strategic asset. Yet many companies still evaluate accounting services the same way they would a vendor: by price alone. This approach misses the bigger picture. 

Traditional ROI calculations focus on cost reduction, but the real value of a full-service accounting partner lies in measurable business impact. That includes: 

• Faster decision-making 
• Reduced compliance risk 
• Improved cash flow visibility 
• Access to senior-level financial talent without the overhead of a full-time hire 

When evaluating outsourced accounting ROI, the question isn’t just “How much does this cost?” It’s “What does this enable us to do that we couldn’t do before?” 

What Full-Service Accounting Actually Delivers 

The term “full-service outsourced accounting” gets used often, but what does it actually mean in practice?  

It’s more than bookkeeping or tax preparation. A true full-service partner handles everything from daily transaction management and financial reporting to compliance, strategic advisory, and CFO-level guidance. 

This integrated approach creates compounding value.  

• Clean, accurate books lead to reliable financial reports  
• Reliable reports enable better forecasting 
• Better forecasting drives smarter capital allocation, hiring decisions, and growth strategies 

When these functions work together under one roof, businesses gain clarity and confidence that piecemeal solutions can’t provide. 

For growing companies, this matters even more. You’re not just maintaining the status quo—you’re building infrastructure that can scale with you. Outsourced accounting services offer access to senior-level experience without the cost and complexity of hiring, onboarding, and managing a full in-house team. You get the skill set of a finance department with the flexibility and efficiency of an external partner. 

The result? Leadership spends less time troubleshooting accounting issues and more time focusing on growth. Financial data becomes a tool for decision-making, not a source of stress. And as your business evolves, your finance function evolves with it—without the delays and disruptions that come with staff turnover or capacity limits. 

How to Calculate ROI for Outsourced Accounting 

Measuring the ROI of outsourced accounting requires looking beyond simple cost comparisons. True ROI calculation means evaluating both quantifiable gains and strategic value that might not appear on a traditional balance sheet. 

Time Recaptured by Leadership 

Start by considering how many hours per week your leadership team spends on financial tasks. This includes reviewing reports, chasing down errors, preparing for tax season, managing bookkeepers, or simply trying to make sense of your numbers.  

A full-service accounting partner reduces this burden. You still review reports and make decisions, but you’re no longer troubleshooting, managing processes, or playing catch-up with your own financial data. That recaptured time can be redirected toward activities that actually grow your business. 

Risk Mitigation and Compliance Confidence 

Compliance errors, late filings, and inaccurate reporting carry real costs. State and federal penalties for missed deadlines can range from hundreds to thousands of dollars per incident.  

Audit issues can consume weeks of leadership attention and professional fees. Poor decisions based on unreliable data can cost far more—an ill-timed hire, a missed cash flow problem, or an inaccurate investor presentation. 

A full-service partner reduces these risks through deep skill, quality control processes, and proactive oversight. They stay current on regulatory changes, maintain documentation standards, and catch issues before they become problems.  

The value isn’t just in avoiding penalties—it’s in the confidence to make decisions quickly, knowing your numbers are accurate and your compliance position is solid. 

Operational Efficiency and Financial Clarity 

Faster monthly close cycles mean you have current data when you need it, not weeks after the period ends. This matters when you’re evaluating new opportunities, responding to market changes, or reporting to investors and lenders. Many growing businesses close their books 15-20 days into the following month. A strong accounting partner can often cut that to 5-10 days. 

Improved cash flow visibility helps you manage working capital more effectively. You can identify trends, anticipate shortfalls, and make informed decisions about when to invest, when to conserve, and when to pursue growth opportunities. Real-time reporting enables faster, more confident decision-making across your organization. 

These improvements don’t just save time—they create opportunities. Better data quality means better forecasting. Better forecasting means smarter resource allocation. Smarter allocation means higher returns on every dollar you invest in growth. 

Access to Senior-Level Talent Without Full-Time Overhead 

Building an in-house finance team means recruiting, onboarding, managing, and retaining specialized talent.  

Outsourced accounting gives you immediate access to experienced professionals across multiple disciplines—bookkeeping, accounting, tax, and strategic advisory—without the overhead of full-time employees. You scale services up or down as your needs change, and you benefit from a team structure that provides continuity even when individual team members are unavailable. 

This model also delivers skillsets you might not be able to attract or afford as a single hire. Controller-level strategic guidance, industry-specific knowledge, and CFO-level advisory become accessible at a fraction of the cost of building that capability internally. 

Strategic Advisory That Drives Measurable Outcomes 

The best accounting partners don’t just report what happened—they help you understand what it means and what to do about it. They identify tax optimization opportunities, flag operational inefficiencies, and provide guidance on financial strategy. This advisory component often delivers ROI that far exceeds the base accounting services. 

For example, an outsourced accounting team might: 

• Identify R&D tax credits worth tens of thousands of dollars annually 
• Suggest a restructure of your entity to improve tax efficiency 
• Spot cash flow patterns that lead to better vendor payment terms or customer billing practices 

Each of these improvements delivers direct, measurable financial benefit. When evaluating potential partners, focus on outcomes, not just deliverables. Choosing an outsourced accountant means finding someone who can quantify and deliver measurable impact, not just check boxes on a service list. 

Build a Finance Function that Drives Growth 

The true ROI of a full-service accounting partner isn’t just about what you spend—it’s about what you gain.  

Time recaptured for strategic work. Risk mitigated before it becomes costly. Operational efficiency that scales with your business. Access to talent that would be difficult or expensive to build in-house. And strategic guidance that identifies opportunities you might otherwise miss. 

For growing businesses, these outcomes directly influence your ability to scale, attract capital, and make confident decisions. 

Ready to quantify the impact of a strategic accounting partner? Contact BPM to explore how full-service accounting can fuel your next stage of growth. 

The spreadsheet-based financial planning that powered your early growth becomes a constraint when complexity arrives, creating blind spots that widen as operations scale and investor expectations intensify.  

“As your company matures, outdated tools begin slowing execution and weakening financial visibility at exactly the time stakeholders demand greater precision and speed.” Howie Lau – Director, Advisory 

What worked at $5 million in revenue often creates strategic vulnerabilities at $50 million. Let’s look at five telltale signs you’ve outgrown your company’s basic financial plan (and what to do now).  

Why basic financial planning stops working at scale 

Basic financial planning serves startups well during their formative years, providing monthly budget reviews, simple cash flow tracking, and historical reporting that meet the needs of smaller operations. 

But growth introduces complexity that quickly outpaces these foundational approaches, creating gaps between what your business needs and what your current financial planning can deliver. 

Companies moving through funding rounds face particularly acute pressure as Series B investors expect financial models demonstrating clear paths to profitability, while board members probe unit economics and customer acquisition costs with increasing scrutiny. 

Investor expectations increasingly treat FP&A maturity as a signal of leadership capability and operational discipline. 

The warning signs typically appear gradually, manifesting through subtle operational friction before crystallizing into obvious constraints: 

• Your team starts mentioning data gaps during strategic meetings.  
• Reports take progressively longer to produce each quarter.  

These symptoms signal that your business has definitively outgrown its basic financial plan and needs more robust FP&A capabilities to support the next phase of growth. 

Top Signs Your Company is Outgrowing the Current Financial Plan 

Sign 1: Your financial reports arrive too late 

Month-end close stretches into its third week, forcing the executive team to review October results in mid-November while making November decisions based on data reflecting conditions from 45 days prior. This temporal disconnect creates strategic problems because market shifts happen in real time, competitor moves require immediate responses, and customer behavior changes rapidly enough that 30-day-old insights feel like ancient history. 

Fast-growing companies operate in compressed timeframes where a software company launching a new product line needs daily revenue tracking rather than monthly summaries, and a manufacturing business scaling production requires real-time visibility into costs and margins to maintain profitability during expansion. The ripple effects extend far beyond the C-suite, creating operational challenges throughout the organization: 

• Department heads allocate resources without current financial context 
• Sales teams structure discounts without understanding margin implications 
• Operations teams approve expenditures that inadvertently exceed budgets 
• Strategic initiatives get delayed because nobody has confidence in outdated projections 

Financial planning and analysis services transform this dynamic by implementing systems that deliver timely insights through a combination of technology, process refinement, and analytical skills. 

“In many cases, companies that adopt mature FP&A practices reduce reporting timelines by 40–60%, enabling faster and more confident decision-making.” – Howie Lau 

Sign 2: You can’t answer “what-if” questions with confidence 

The board meeting question catches you unprepared despite its fundamental importance to strategy. “What happens to our runway if customer churn increases by 5%?” You promise to run the numbers and follow up within 48 hours. Three days later, you’re still building the model from scratch while pulling data from multiple disconnected sources. 

Scenario planning separates reactive businesses from strategic ones, and this capability becomes increasingly critical as growth-stage companies navigate constant uncertainty around customer concentrations, market conditions, and unexpected expansion opportunities.  

The business impact manifests in multiple ways: 

• Leadership delays major decisions while waiting for custom analysis 
• Strategic opportunities expire before financial modeling gets completed 
• Resource allocation happens through intuition rather than quantitative comparison 
• Risk assessment relies on gut feeling instead of probabilistic modeling 

Strong FP&A builds integrated financial models where revenue assumptions connect automatically to operational costs, sensitivity analyses reveal which variables matter most to outcomes, and dashboards visualize results across different scenarios so leadership teams can explore options before selecting strategies rather than discovering problems after implementation. 

This shift—from retroactive reporting to forward-looking decision support—is one of the most valuable outcomes of modern FP&A. 

Sign 3: Your team speaks different financial languages 

Sales reports 30% growth while operations shows flat performance and finance flags declining margins, creating a situation where three departments examine the same business and reach contradictory conclusions that make unified strategic planning nearly impossible.  

The absence of standardized KPIs prevents the organizational alignment necessary for executing complex strategies, turning meetings into debates about whose numbers tell the true story rather than collaborative problem-solving sessions focused on business outcomes.  

This fragmentation intensifies during annual strategic planning cycles when department heads build budgets in isolation, resource allocation becomes political rather than analytical, and cross-functional initiatives struggle because teams measure outcomes through incompatible frameworks. 

Key manifestations of this problem include: 

• Executive team members arriving at strategy meetings with conflicting performance assessments 
• Board presentations requiring extensive reconciliation between departmental reports 
• Strategic initiatives failing due to misaligned success metrics across functions 
• Resource allocation debates focusing on data interpretation rather than strategic priorities 

Robust financial planning and analysis creates shared financial language across the business through unified KPI frameworks that give everyone the same scorecard, integrated reporting that connects departmental metrics to company objectives, and regular financial reviews that build common understanding of business drivers. 

This alignment increases decision velocity and ensures teams execute against the same operational reality. 

Sign 4: Fundraising or M&A preparation reveals financial gaps 

Due diligence begins and the requests start flowing with intimidating velocity. Three-year projections with monthly granularity. Customer cohort analysis showing retention patterns and lifetime value evolution. Unit economics broken down by product line, customer segment, and acquisition channel. Your team scrambles to compile information that sophisticated investors expect to already exist in readily accessible formats. 

Investors and acquirers evaluate financial sophistication as a direct signal of management capability and business maturity, so incomplete forecasts raise questions about leadership while inability to explain variance between plan and actual performance suggests faulty operational control.  

The problem extends well beyond missing reports into deeper questions about business fundamentals, as investors probe the assumptions underlying your projections with forensic detail. 

M&A transactions apply even greater scrutiny through requirements that include: 

• Detailed working capital analyses showing seasonal patterns and operational efficiency 
• Normalized earnings calculations that remove one-time items and present sustainable profitability 
• Integration plans demonstrating cost synergies and revenue opportunities post-acquisition 
• Quality of earnings assessments that validate reported financial performance 

Building financial reporting frameworks positions you strategically for these inflection points by creating institutional knowledge that extends beyond individual spreadsheets maintained by specific team members.  

“Companies with strong FP&A discipline often experience smoother diligence processes, faster deal timelines, and stronger valuation narratives.” – Howie Lau 

Systematic forecasting processes document assumptions that make projections defensible under scrutiny, while regular variance analysis builds confidence in your numbers through demonstrated accuracy over time. 

Sign 5: Your accounting software can’t keep up with business complexity 

Your company operates across three states with different tax requirements, manages subscription revenue with complex recognition rules, and needs to consolidate financial results from two subsidiaries.  

Your accounting software crashes during month-end close because it wasn’t designed to handle this level of operational sophistication, and your finance team spends hours manually transferring data between systems to produce consolidated reports. 

Basic accounting software serves early-stage companies effectively, but growth introduces requirements that exceed foundational platform capabilities. You need multi-entity consolidation but your current system treats each legal entity as a separate island. Revenue recognition rules under ASC 606 require functionality your software simply doesn’t offer. Multiple currencies become necessary for international expansion, but your platform only handles domestic transactions effectively. 

The limitations create operational friction across multiple dimensions: 

• User access restrictions prevent department heads from viewing the financial data they need 
• Reporting capabilities can’t generate the board-level analyses investors expect 
• Integration limitations force manual data transfers between CRM, billing, and accounting systems 
• Audit trails and controls don’t meet the standards required for larger funding rounds or public company readiness 

Technology represents a critical component of mature financial planning infrastructure. Platforms like NetSuite provide the enterprise resource planning capabilities that scaling businesses require, offering multi-entity consolidation, sophisticated revenue recognition, and real-time reporting in integrated systems.  

The most effective approach combines the right technology with robust FP&A methodology and skilled talent. Your finance function needs systems that can scale, processes that drive consistency, and professionals who transform data into strategic insights. 

Technology alone doesn’t solve complexity— professional FP&A turns data into strategy. 

Learn more about our Financial Planning and Analysis Services

Turn financial complexity into a competitive advantage 

The transition from basic financial planning to mature FP&A capabilities represents a critical inflection point for growing businesses, and the investment consistently pays returns through better capital allocation, stronger investor confidence, and enhanced strategic agility that compounds across multiple growth phases.  

These improvements often generate multi-year benefits in profitability, decision speed, and operational alignment. 

Your financial planning should illuminate multiple paths forward with quantified trade-offs rather than simply measuring what happened behind you through historical reports that arrive too late to influence decisions. 

If you’re evaluating how to strengthen your financial planning foundation, BPM’s FP&A team can provide a complimentary readiness assessment to help you understand your current maturity level and identify the capabilities needed for your next stage of scale. 

If you’re dreaming about stepping away from full-time work at 60, you’re not alone. Maybe you want more time to travel, volunteer, or just slow down. The big question is — can you afford it? – The answer depends on your lifestyle, spending habits, debts, health, legacy plan, and more.  

– If you’re thinking about retiring at 60, there’s more to it than just your investment balance. You’ll also want to think through things like when to start Social Security and how to bridge the gap until Medicare kicks in. 

Portfolio targets for retiring at 60 

Retiring at 60 is still technically retiring early—you’re not eligible for Social Security quite yet (age 62), and don’t qualify for Medicare (age 65)–  for much of the population, so you’ll still need to plan your withdrawals – strategically, being mindful of how market volatility may impact your sustainable withdrawal rate. Here are the portfolio requirements for different spending levels: 

Portfolio requirements by expense level 

For someone planning to spend around $120,000 a year, you may need roughly $3 million saved if you plan to fully retire. But if you can bring in even $100,000 a year through part-time work or rental income, that number can drop by nearly half.  Using the widely accepted 4% withdrawal rule, here are some withdrawal rates for 25-year retirement: – 

Income Generated by Portfolio Size (at 4% withdrawal rate) 

Portfolio Size	Annual Income	Bridge Income Needed for Various Expense Levels
$500,000	$20,000/year	$60K bridge for $80K expenses; $100K bridge for $120K expenses
$1.5 million	$60,000/year	$20K bridge for $80K expenses; $60K bridge for $120K expenses; $100K bridge for $160K expenses
$2.0 million	$80,000/year	Covers $80K expenses; $40K bridge for $120K expenses; $80K bridge for $160K expenses
$2.5 million	$100,000/year	Covers $80K expenses; $20K bridge for $120K expenses; $60K bridge for $160K expenses; $100K bridge for $200K expenses
$3.0 million	$120,000/year	Covers $80K–$120K expenses; $40K bridge for $160K expenses; $80K bridge for $200K expenses
$3.8 million	$152,000/year	Covers $80K–$120K expenses; $8K bridge for $160K expenses; $48K bridge for $200K expenses; $98K bridge for $250K expenses
$4.0 million	$160,000/year	Covers $80K–$160K expenses; $40K bridge for $200K expenses; $90K bridge for $250K expenses
$5.0 million	$200,000/year	Covers $80K–$200K expenses; $50K bridge for $250K expenses
$6.3 million	$252,000/year	Covers all expense levels shown ($80K–$250K) without bridge income

As you can see, bridge income can be a big help when planning your nest egg. Generating $100,000 annually through consulting, part-time work, or investment income can substantially reduce your needed portfolio – when compared to complete financial independence in these scenarios. 

The traditional salary multiple guideline suggests having six to eight times your annual salary saved by age 60. For example, someone earning $200,000 would target $1.2-1.6 million. While this benchmark works for conventional retirement at 65, it -may fall short for retiring at 60 without some bridge income or lifestyle adjustments. 

Evaluate your lifestyle requirements 

At 60, you likely have clearer visibility into your retirement spending patterns and financial commitments than you did in your 40s or 50s. This creates opportunities to make strategic decisions that can significantly impact your required portfolio size. 

Housing and relocation decisions 

Geographic relocation becomes increasingly feasible at 60 as career constraints diminish. Moving from high-cost metropolitan areas to regions with lower living expenses -may reduce your required portfolio by millions while potentially enhancing your retirement lifestyle. 

Another important consideration is the tax implications of different states. States without income taxes can provide meaningful savings on retirement account withdrawals and Social Security benefits. Property tax differences also impact your ongoing housing costs substantially. 

As you consider a change in geography and state during retirement, downsizing decisions may also affect both your upfront capital and ongoing expenses. Downsizing from a large family home to a smaller home more suitable for you as you age may also inject significant assets into your retirement portfolio while reducing property taxes, insurance, and maintenance costs. 

Healthcare planning considerations 

Healthcare costs often become more predictable and pressing at 60. Current health conditions and family medical history should inform both your expense budgeting and insurance planning strategies. 

Long-term care insurance deserves serious consideration at this age. Premium costs increase significantly after 60, but the coverage becomes more relevant as you approach ages when care needs typically emerge. Whether you have a LTC policy, or choose to self insure, this can have a material impact on the required portfolio balance necessary to cover your retirement expenses, including LTC.  

Prescription medication costs and specialist care often increase during your 60s. Factor these evolving healthcare needs into your retirement expense planning, particularly during the five-year gap before Medicare eligibility. You may also want to consider Medicare supplemental plans to make your out-of-pocket costs more predictable.  

Travel and lifestyle priorities 

Early retirement years often represent peak travel and activity periods before health limitations potentially constrain these pursuits. Many 60-year-old retirees -prioritize expensive travel plans during their initial retirement years. 

When planning for retirement lifestyle, consider whether your retirement spending will follow a declining pattern—higher expenses in early retirement years that decrease as you age and become less active—often referred to as “retirement stages” spending. Or, whether you’re willing to adjust your lifestyle each year as markets go up and down. Your spending pattern affects your portfolio withdrawal strategy and asset allocation decisions. 

Debt and financial obligations 

Outstanding debt obligations require strategic evaluation at 60. Would you prefer to have lower monthly expenses, or are you comfortable carrying debt into retirement? Certain debt, like low-rate mortgage debt, might make sense to maintain if investment returns exceed borrowing costs, while high-rate credit card debt should typically be eliminated before retirement. 

Family financial commitments often persist into your 60s. Grandchildren’s education expenses, adult children’s financial support, or aging parent care can represent substantial ongoing costs that must be incorporated into your retirement planning. 

Maximize your final earning years 

Your late 50s and early 60s often represent peak earning potential, creating opportunities to accelerate wealth accumulation through sophisticated strategies not available earlier in your career. 

Foundation retirement strategies 

Maximum contribution strategies should be your starting point: 

• 401(k) contributions: $23,500 plus $7,500 catch-up in 2025 (with a special catch up for those ages 60-63)
• IRA contributions: $7,000 plus $1,000 catch-up 
• HSA maximization: $4,300 individual or $8,550 family coverage 

Catch-up contributions may provide substantial advantages for 60-year-old retirees. The additional $8,500 in annual tax-advantaged savings, compounded over several years, can meaningfully impact your retirement readiness. 

Roth versus traditional contribution decisions become critical as you approach retirement. Maintaining some tax diversification provides flexibility in what your annual income picture looks like each year, your current tax bracket, expected retirement tax rates, and legacy planning goals should inform these choices. 

Final executive compensation decisions 

Many high earners face significant compensation decisions during their final working years. Stock option timing, deferred compensation elections, and equity acceleration choices can substantially impact your retirement portfolio. 

Consider spreading large equity compensation events across multiple years to manage tax brackets. Coordinate these decisions with your retirement timeline to optimize both tax efficiency and cash flow needs. 

Executive severance packages often include valuable benefits beyond cash payments. Extended healthcare coverage, outplacement services, and non-compete payment arrangements can often be negotiated, and provide meaningful bridge benefits. 

Large-scale charitable giving strategies 

For those with philanthropic interests, gifting strategies become more relevant as wealth accumulates and tax planning needs evolve. Donor-advised funds allow immediate tax deductions while maintaining control over distribution timing. 

Charitable remainder trusts can provide income streams while offering tax benefits and legacy planning advantages. These strategies work particularly well for high earners with appreciated assets approaching retirement. 

Consider bunching charitable deductions into single tax years to exceed standard deduction thresholds, particularly during high-income years before retirement. 

Create your bridge strategy 

Retiring at 60 creates a two-year gap before early Social Security eligibility at 62 and a five-year wait for Medicare. Your income plan must address both income replacement and healthcare coverage during this transition period. This gap also presents significant planning opportunities to take advantage of lower income tax years, and minimize future challenges—RMDs, cost of Medicare in the future, Social Security tax torpedo. 

Social Security optimization timing 

Social Security claiming decisions become concrete planning considerations at 60. While you can claim benefits as early as 62, – this decision permanently reduces your monthly payments by approximately 25-30% compared to full retirement age benefits. 

The decision involves weighing immediate cash flow needs against lifetime benefit optimization. Someone with a substantial retirement portfolio might delay claiming to maximize benefits, while others might claim early to preserve portfolio assets, especially if leaving a legacy or inheritance is a priority. 

Consider spousal benefit strategies if you’re married. Coordinating claiming strategies between spouses can optimize household Social Security income over both lifetimes. 

Pre-Medicare healthcare planning 

Healthcare coverage represents one of your largest expenses during the five-year Medicare gap. If you’re eligible, COBRA may provide up to 18 months (36 months in rare circumstances) of continued employer coverage, though at significantly higher premium costs. 

Private health insurance through ACA marketplace plans become your primary long-term coverage option. Premium costs vary dramatically by location and income level, potentially requiring substantial budget allocation for healthcare expenses. 

Health Savings Accounts become particularly valuable for 60-year-old retirees. The triple tax advantages make HSAs powerful vehicles for funding healthcare expenses, including Medicare expenses, throughout retirement 

Income bridge strategies 

Taxable investment accounts provide flexible income access without early withdrawal penalties. These accounts allow you to manage tax liability year by year based on your other income sources. Any realized gains from taxable accounts would be subject to preferential capital gains treatment instead of ordinary income taxes if the investment was held for longer than 1 year.  

Real estate investments -may generate steady cash flow through rental income while providing inflation protection and tax advantages through depreciation deductions. 

For those that would prefer a gradual transition into retirement, part-time work or consulting -can help you leverage your established professional network and unique skills. Many 60-year-old retirees find fulfillment in selective work arrangements that provide income while allowing substantial lifestyle flexibility. 

Advanced Roth conversion opportunities 

Early retirement may create opportunities for strategic Roth conversions during lower-income years. Converting traditional retirement account assets to Roth accounts can optimize your lifetime tax situation and provide tax-free income on qualified withdrawals in later retirement years. 

Coordinate conversion strategies with other income sources to help manage tax brackets effectively. The goal is to convert assets during years with lower overall income before Social Security benefits begin. Also be mindful of the impact these conversions have on the cost of Medicare.  

Plan your customized retirement strategy 

Retiring at 60 offers advantages over earlier retirement ages while still requiring sophisticated planning. Your proximity to Social Security and Medicare creates opportunities that don’t exist for retirees in their 40s and 50s. 

The complexity of coordinating final compensation decisions, optimizing Social Security claiming strategies, managing healthcare coverage transitions, and implementing tax-efficient withdrawal strategies requires professional guidance tailored to your unique circumstances. 

Everyone’s version of retirement looks different — and your plan should too. If you’re wondering what retiring at 60 could look like for you, Contact BPM’s wealth management team to develop comprehensive strategies tailored to your final earning years, benefit optimization timeline, and retirement lifestyle objectives. 

This material is for informational purposes only and is not intended to provide specific advice or recommendations for any individual. This information is not intended for use as tax advice. The examples given are hypothetical and are for illustrative purposes only. Actual results may vary from those illustrated.  

Securities offered through Valmark Securities, Inc. Member FINRA, SIPC | Investment Advisory services offered through BPM Wealth Advisors, LLC and/or Valmark Advisers, Inc. each an SEC Registered Investment Advisor | BPM LLP and BPM Wealth Advisors, LLC are entities separate from Valmark Securities, Inc. and Valmark Advisers, Inc.  

If you’re considering retirement at 62, you’ve reached what many consider the traditional retirement milestone—the age when many Americans step away from their careers and begin accessing the benefits they’ve been building toward for decades. 

At 62, your retirement planning landscape looks quite different from those considering earlier retirement. You have access to Social Security benefits and just three years until Medicare eligibility kicks in, which fundamentally changes your planning dynamics. Instead of creating complex workarounds and bridge strategies, you’re working within established systems designed to support retirees. 

The question shifts from “Can I afford to retire early?” to “How do I optimize my retirement income and make the most of my legacy planning now that traditional benefits are available?” 

Your financial planning focus naturally centers on maximizing portfolio efficiency, coordinating multiple income sources, and implementing sophisticated tax strategies that may not have been as relevant during your wealth-building years. 

How much do you need in your portfolio to retire at 62? 

Retiring at 62 often allows for more traditional withdrawal rates since you have immediate access to Social Security income and only a short bridge to Medicare. This puts you in a much more favorable position than earlier retirees. 

How much you’ll need to save depends primarily on your target spending goals and needs.  

Let’s take a closer look at a visualization using a traditional 4% withdrawal rate.  

Annual Expenses	Portfolio Needed (No Bridge Income)	Portfolio with $100K Bridge Income
$100,000	$2.5 million	$1.0 million
$150,000	$3.8 million	$2.3 million
$200,000	$5.0 million	$3.5 million
$300,000	$7.5 million	$6.0 million
$400,000	$10.0 million	$8.5 million

Keep in mind that these calculations don’t heavily rely on the income from your Social Security benefits. While Social Security provides valuable supplemental income, it often won’t support luxury lifestyles on its own. 

As you’re crunching some numbers, traditional salary multiple guidelines become much more accurate at 62. Having eight to ten times your annual salary saved typically supports retirement, assuming you’re not maintaining extremely high spending relative to your earned income. 

You can also use the 25x expense rule—saving 25 times your annual expenses. For example,  someone spending $200,000 annually could need about $5 million, which aligns with the preliminary portfolio calculations above. 

Understand your retirement lifestyle needs 

At 62, you’re in a particularly advantageous position when it comes to retirement planning.  

You likely have much clearer visibility into your spending patterns and long-term financial commitments than you did in earlier decades. This clarity can create valuable opportunities for strategic decisions that can significantly impact both your required portfolio size and how you want to approach legacy planning. 

Daily living expenses 

Your retirement spending will likely shift from your working years in some predictable ways. Those daily commuting costs could disappear while healthcare expenses typically increase. Your dining and entertainment patterns may shift as your schedule becomes more flexible and you have more time to enjoy the activities you love. 

Here’s something many retirees discover: spending often peaks during those initial retirement years as they pursue delayed travel plans and activities they’ve been looking forward to for years, then moderates as they settle into comfortable routines. It’s worth thinking about whether your retirement will follow this front-loaded spending pattern or maintain steady expenses throughout. 

Long-term care considerations 

Long-term care planning shifts from something you might think about someday to something much more immediate at 62. Your current health status and family history should inform both insurance decisions and care preference planning. 

Something important to keep in mind is that long-term care insurance premiums tend to increase substantially after 62, making current decisions somewhat time-sensitive. However, self-insurance through portfolio assets can be another viable option. 

Healthcare expenses 

Healthcare costs become both more predictable and more substantial at 62. Prescription medications, specialist care, and preventive treatments often increase during your 60s and beyond—but at least you can plan for them more accurately than when you were younger. 

The three-year gap until Medicare eligibility requires specific planning, but COBRA or private marketplace coverage can bridge this period much more easily than the longer gaps faced by earlier retirees. That shorter timeline works significantly in your favor. 

Travel and activity priorities 

Early retirement years often represent peak spending periods for travel and active pursuits. Many 62-year-old retirees choose to front-load expensive travel plans while they’re healthy and energetic—and this makes a lot of sense from both a lifestyle and financial planning perspective. 

Consider sequencing your retirement activities based on physical demands and costs. International travel and adventure activities might make sense during those initial retirement years, while domestic and less physically demanding activities can extend throughout your retirement as you age. 

Legacy planning opportunities 

At 62, wealth transfer planning shifts from future consideration to immediate implementation. You may find yourself helping with grandchildren’s education expenses, adult children’s home purchases, and various family financial support needs that often align with this life stage. 

Wedding expenses for children, educational funding for grandchildren, and down payment assistance represent substantial potential cash outflows that should be incorporated into your retirement planning—if that’s something you want to do. 

When it comes to your estate plan, sophisticated strategies such as grantor-retained annuity trusts, charitable remainder trusts, and generation-skipping trust strategies are most effective when implemented before significant health changes occur. The window for implementing these strategies effectively can narrow as you age. 

Current federal estate tax exemption levels provide substantial gifting opportunities that may not persist indefinitely. It’s helpful to coordinate your annual exclusion gifts and lifetime exemption usage with your retirement cash flow needs to help ensure everything works together smoothly. 

Optimize your financial strategies 

Your last few working years or early retirement period create unique opportunities for financial optimization that simply aren’t available during pure wealth-building phases or later in retirement. 

Foundation retirement contributions 

Even at 62, maximum annual contributions remain valuable if you’re still working: 

• 401(k): $23,500 plus $7,500 catch-up in 2025 (If you’re 60-63, you can get an extra catch-up limit) 
• IRA: $7,000 plus $1,000 catch-up 
• HSA: $4,300 individual or $8,550 family coverage plus $1,000 in catch-up contributions 

These contributions provide final opportunities for tax-advantaged savings while you potentially still have earned income to support them. Every dollar you can shelter from taxes now can help you grow your retirement accounts.  

Pension distribution decisions 

If you’re fortunate enough to have a traditional pension plan, you’re likely facing some irrevocable decisions at 62. The choice between lump sum versus annuity elections will affect your retirement income structure for the rest of your life. 

Lump sum distributions provide portfolio control and legacy planning flexibility, but they shift longevity and investment risk to you. Annuity payments provide predictable income but limit flexibility and legacy opportunities. 

You’ll want to consider your other income sources, risk tolerance, and legacy goals when making these permanent decisions. There’s no universal right answer—it depends entirely on your specific circumstances and what matters most to you. 

Social Security filing strategy 

Here’s where things get interesting from a planning perspective. Social Security claiming at 62 permanently reduces your monthly benefits by approximately 25-30% compared to full retirement age benefits. For high earners, this reduction might be perfectly acceptable given your modest reliance on Social Security for lifestyle support. 

However, delayed claiming until age 70 can increase benefits by 8% annually after full retirement age, potentially making the delay worthwhile for longevity planning and spouse benefit optimization. 

If you’re married, you have additional claiming strategy options that single retirees simply don’t have access to. Spousal benefits, survivor benefits, and coordinated timing can optimize household Social Security income over both lifetimes. 

Consider which spouse should claim early versus delay based on earnings records, health status, and overall retirement planning goals. These decisions affect survivor benefits that could last decades, so they deserve careful consideration and probably some professional guidance. 

Plan your healthcare transition 

Healthcare planning at 62 focuses on bridging those three years until Medicare, while potentially managing increasing medical needs and prescription costs. 

Pre-Medicare coverage options 

COBRA can extend your employer coverage for up to 18 months, which gets you halfway to Medicare eligibility. However, premium costs increase substantially when employers stop contributing to coverage costs, so you’ll want to budget accordingly. 

Private marketplace health insurance plans provide alternatives with potentially different provider networks and prescription coverage. When evaluating these options, compare total costs including premiums, deductibles, and out-of-pocket maximums to get the full financial picture. 

Medicare preparation planning 

Medicare enrollment requires active decisions about coverage types and supplemental insurance that will affect your healthcare experience for years to come. Original Medicare with Medigap policies offers different trade-offs than Medicare Advantage plans, and understanding these differences now will help you make better decisions. 

Understanding Medicare coverage limitations also helps inform long-term care insurance decisions and health savings account usage strategies for the years ahead. 

Medicare Part B and Part D premiums also include income-related monthly adjustment amounts (IRMAA) for high earners. These surcharges apply based on your modified adjusted gross income from two years prior, which can create some timing challenges. 

Planning withdrawal strategies and Roth conversions with IRMAA thresholds in mind can help minimize these additional premium costs throughout your Medicare eligibility. It’s worth understanding these thresholds now, while you still have time to plan around them. 

Health Savings Account optimization 

HSAs provide unique advantages for retirees with high-deductible health plans, and these advantages actually increase after age 65. HSA withdrawals for non-medical expenses face only ordinary income tax without penalties after 65, making them similar to having an additional retirement account. 

Maximizing HSA contributions during your final working years and preserving balances for retirement healthcare expenses can provide significant tax advantages throughout your retirement. 

Create your comprehensive retirement plan 

Your retirement at 62 is about more than just having enough money—it’s about optimizing all the systems and benefits you’ve earned while creating a legacy that reflects your values and supports the people you care about. 

If you’re ready to explore what retirement at 62 could look like for your specific situation, contact BPM’s wealth management team to develop comprehensive strategies that coordinate Social Security benefits, healthcare transitions, tax optimization, and legacy planning tailored to your circumstances.  

This material is for informational purposes only and is not intended to provide specific advice or recommendations for any individual. This information is not intended for use as tax advice. 

The examples given are hypothetical and are for illustrative purposes only. Actual results may vary from those illustrated.  

Securities offered through Valmark Securities, Inc. Member FINRA, SIPC | Investment Advisory services offered through BPM Wealth Advisors, LLC and/or Valmark Advisers, Inc. each an SEC Registered Investment Advisor | BPM LLP and BPM Wealth Advisors, LLC are entities separate from Valmark Securities, Inc. and Valmark Advisers, Inc.  

The blockchain and digital assets industry enters 2026 at an inflection point. What began as experimental technology has evolved into essential financial infrastructure, with institutional adoption accelerating at unprecedented rates.  

As regulatory clarity emerges and traditional financial systems converge with blockchain innovation, business leaders face critical decisions about digital asset strategies. The coming year will separate early adopters who capitalize on these transformative trends from those who risk being left behind in an increasingly digital financial ecosystem. 

Five Trends to Prepare for in 2026 

1. Institutional Adoption Reaches New Heights 

The institutional wall of resistance has crumbled. With 59% of institutions planning to allocate over 5% of their assets under management to cryptocurrencies in the coming year, and 75% expecting to increase allocations overall, 2026 marks the year digital assets become a standard portfolio component rather than an alternative investment. This shift reflects growing confidence in market infrastructure and regulatory frameworks that have matured significantly over the past year. 

State Street’s research confirms this momentum, revealing that nearly 60% of institutional investors plan to increase digital asset allocation, with average exposure expected to double within three years.  

2. Stablecoins and Tokenization Transform Financial Infrastructure 

The stablecoin revolution has arrived. With 84% of institutions now utilizing or expressing interest in stablecoins for yield and transactional convenience, these digital dollars are reshaping how value moves through the global financial system. 2025 witnessed banks, fintech companies, and even merchants rapidly developing stablecoin strategies. In 2026, this experimentation will transform into widespread implementation. 

Circle’s CEO projects the regulated USD stablecoin market to grow to $1 trillion by 2026, driven by use cases extending far beyond simple payments. Asset tokenization addresses fundamental inefficiencies—slow settlement times and high intermediary costs. Some industry projections suggest tokenized assets could reach $2 trillion by 2030, while Boston Consulting Group estimates up to $16 trillion by 2030 and other forecasts range as high as $30 trillion. 

3. Regulatory Clarity Unleashes Market Potential 

Regulatory clarity stands as the number one catalyst for digital asset growth, and 2026 will deliver the frameworks the industry has long awaited. The SEC’s Crypto Task Force is developing comprehensive regulatory guidance, while the CLARITY Act provides clear jurisdictional boundaries between the CFTC and SEC. This transition from enforcement-driven to guidance-based regulation fundamentally changes the risk calculus for institutional participation. 

The shift extends beyond federal regulations. Following Wyoming’s Frontier Stable Token and Illinois’s comprehensive frameworks, we anticipate additional states will compete for digital asset business through progressive legislation. For business leaders, this regulatory clarity removes the primary barrier to adoption, making 2026 the year to move from planning to implementation. 

4. DeFi Opens Doors to Institutional Participation 

Decentralized finance stands ready for its institutional moment. While only 24% of institutional investors currently engage with DeFi protocols, this figure will triple to 74% within two years as compliance solutions mature. The Financial Action Task Force’s Travel Rule requirements for DeFi platforms have established the compliance foundation necessary for institutional participation. 

Interest extends beyond Bitcoin and Ethereum to significant ecosystems like XRP and Solana, with new exchange-traded products expanding access. Innovative compliance solutions like verifiable credentials allow institutions to maintain privacy while meeting regulatory requirements, removing the final barriers to DeFi participation. Investment committees exploring DeFi in 2026 will find mature protocols offering yields and services previously exclusive to traditional finance. 

5. Onchain Finance Infrastructure Comes of Age 

Despite technical hurdles, blockchain scalability improvements and regulatory clarity signal an inflection point for onchain finance. Major financial institutions have moved beyond pilots to production deployments, testing scalable use cases for everything from trade finance to securities settlement. Layer-2 solutions and technologies like zero-knowledge rollups will achieve mass adoption in 2026, finally delivering the speed and cost efficiency blockchain has long promised. 

Swift’s live trials of digital asset transactions exemplify how traditional infrastructure providers are bridging old and new systems. As interoperability challenges resolve and security standards mature, technology executives must prepare for blockchain integration across core business processes, from supply chain management to financial reporting. 

Learn more about our Blockchain and Digital Assets Consulting Services

Strategic Actions for Company Leaders 

For C-Suite Executives: 

• Develop comprehensive digital asset policies covering investment, custody, and operational use cases 
• Establish board-level oversight for blockchain initiatives with clear risk parameters 
• Allocate budget for talent acquisition and technology partnerships in Q1 2026 

For Finance Leaders: 

• Evaluate tokenized assets for treasury management and portfolio diversification 
• Implement accounting systems capable of handling digital asset transactions 
• Prepare for new tax reporting requirements as standards evolve 

For Technology Executives: 

• Assess blockchain platforms for pilot programs in non-critical business processes 
• Build internal capabilities through training and strategic hiring 
• Establish vendor relationships with established blockchain infrastructure providers 

For Compliance Officers: 

• Update KYC/AML procedures to accommodate digital asset transactions 
• Monitor state and federal regulatory developments monthly 
• Implement real-time transaction monitoring for blockchain-based activities 

Partner With BPM for Your Digital Transformation 

The convergence of traditional finance and blockchain technology presents both unprecedented opportunities and complex challenges. At BPM, we help organizations navigate this transformation with practical guidance tailored to your industry and risk profile. Our professionals combine deep knowledge of digital assets with an understanding of regulatory requirements and operational realities. 

Don’t let 2026 pass without positioning your organization for success in the digital economy. Contact BPM today to discuss your blockchain and digital asset needs. Together, we can transform industry disruption into a competitive advantage.