11 Tips for Google Employees Nearing Retirement
As a Google employee, you have access to some of the most comprehensive benefits in the tech industry. These tips will help you make the most of your benefits as you prepare for retirement.
1. Max Out Your 401(k) Contributions for the Full Match
Google offers an impressive 401(k) match equal to either 100% of your contributions up to $3,000 or 50% of contributions up to the IRS annual limit, whichever is greater. For 2026, the limit for employee contributions is $24,500 for employees under 50. If you contribute the full $24,500, Google will add another $12,250 to your retirement account. That's a 50% return on your contribution before even factoring in investment growth. If you're not maximizing this benefit, you're leaving free money on the table.
2. Don’t Forget Catch-Up Contributions
Catch-up contributions let you invest even more in your Google 401(k) than the usual IRS limits:
Employees age 50 and older can contribute an additional $8,000, bringing their total potential contribution to $32,500.
Employees age 60–63 are eligible for an even larger super catch-up contribution of $11,250, raising the total limit to $35,750 for 2026.
While these catch-up contributions are not matched by Google, the additional cash is still a great way to boost your investments and grow your wealth for retirement.
3. Consider the Mega Backdoor Roth Strategy
For 2026, the total 401(k) limit is $72,000. This includes employee contributions, the employer match, and additional after-tax contributions. If you contribute the maximum employee contribution of $24,500 and receive Google's $12,250 match, you've used $36,750 of the total limit. That leaves $35,250 available for after-tax contributions. (Catch-up contributions do not count toward this limit.)
Google's 401(k) plan lets you convert those after-tax contributions to a Roth account, where they will grow tax-free and can be withdrawn tax-free in retirement. This powerful strategy, known as the mega backdoor Roth, lets you save well beyond the usual limits of a 401(k) and a Roth IRA.
If you're within a few years of retirement, this strategy can help you build tax diversification and reduce your future tax burden during your retirement years.
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4. Develop a Strategic Plan for Your GSUs
Your GSUs (Google Stock Units) likely represent a significant portion of your total compensation and net worth. GSUs vest over a four-year period, with taxation occurring as ordinary income when they vest. As you approach retirement, consider these key questions:
How concentrated is your portfolio in Google stock? Financial advisors typically recommend limiting any single stock to 10%–15% of your total portfolio to manage risk.
What's your tax strategy for vested shares? Google automatically withholds 22% of vesting amounts for taxes, but depending on your total income, your actual tax rate could be 32% or 35%, potentially leaving you with a surprise tax bill.
Should you sell immediately upon vesting or hold shares? Many financial advisors recommend systematic selling to fund diversification and reduce concentration risk.
Consider establishing a rule-based selling strategy where you automatically sell a predetermined percentage of shares as they vest, using the proceeds to fund your retirement savings goals or rebalance your portfolio.
A fiduciary financial advisor can help you adjust your strategy so you can protect your finances and save more for the years ahead.
5. Maximize Your HSA Contributions
If you're enrolled in Google's high-deductible health plan, you also have access to a health savings account (HSA). HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
For 2026, you can contribute up to $4,300 for individual coverage or $8,550 for family coverage. If you're 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
Unlike flexible spending accounts, HSA funds never expire. You can invest your HSA balance and let it grow tax-free for decades, then use it to cover healthcare expenses in retirement completely tax-free. After age 65, you can even withdraw HSA funds for non-medical purposes and pay only ordinary income tax, just like a traditional IRA.
Google even adds money to your HSA free of charge. Every year, Google adds $1,000 annually for individual coverage and $2,000 for family coverage to your HSA.
6. Review Your Investments
As retirement approaches, your investment strategy should evolve to reflect your changing time horizon and risk tolerance. While you don't want to become overly conservative too quickly (you could spend 30+ years in retirement), some gradual risk reduction typically makes sense.
Consider these guidelines:
Review your asset allocation annually and rebalance as needed.
Gradually increase your allocation to bonds and more stable investments as you near retirement.
Ensure you have one to two years of living expenses in cash or short-term bonds to weather market volatility in early retirement.
Maintain appropriate diversification beyond Google stock.
Google's 401(k) is held at Vanguard, and you have the option to open a Schwab Personal Choice Retirement Account for self-directed investing, which can provide additional investment flexibility.
7. Understand Social Security Changes for 2026
In November 2026, the full retirement age will reach 67 for those born in 1960 or later, marking the final step in a gradual increase that began in the 1980s. Additionally, Social Security benefits will increase by 2.8% in 2026, which translates to an average increase of about $56 per month.
Choosing when to claim Social Security is one of the most important retirement decisions you'll make. While you can claim as early as age 62, doing so results in permanently reduced benefits. Waiting until your full retirement age means you'll receive 100% of your calculated benefit, and delaying until age 70 can increase your monthly payment by up to 24% compared to your full retirement age benefit.
If you have a substantial 401(k) balance and other assets that you can use to fund your retirement, delaying Social Security can be a smart strategy that maximizes lifetime benefits.
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8. Calculate Your Retirement Income Needs
One of the biggest planning mistakes is not having a clear picture of your retirement expenses. Take time to create a detailed retirement budget that accounts for:
Essential expenses (housing, food, healthcare, insurance)
Discretionary spending (travel, hobbies, entertainment)
One-time expenses (home renovations, vehicle purchases)
Healthcare costs, which tend to increase with age
A common rule of thumb suggests you'll need at least 70%–80% of your pre-retirement income to maintain your lifestyle. In reality, your actual needs may vary significantly based on your circumstances. Some expenses will decrease (no more commuting, work clothes, or retirement savings), while others may increase (healthcare, travel).
Once you understand your spending needs, you can develop a withdrawal strategy that ensures your savings last throughout retirement. But first, you have to know your budget.
9. Plan to Bridge the Healthcare Gap (If Necessary)
If you plan to retire before age 65, you'll need a strategy to cover healthcare costs until Medicare kicks in. This coverage gap is one of the most overlooked aspects of early retirement planning. Your options include:
COBRA continuation coverage: Allows you to continue your Google health insurance for up to 18 months after retirement, though you'll pay the full premium plus a 2% administrative fee. While expensive, this can be a good short-term solution if you're within 18 months of Medicare eligibility.
Health Insurance Marketplace: The Affordable Care Act marketplace offers plans with no age restrictions and covers pre-existing conditions. Depending on your retirement income, you may qualify for premium subsidies that make coverage more affordable.
Spouse's employer plan: If your spouse or partner is still working and has employer-sponsored coverage, you may be able to join their plan.
If you are retiring before Medicare eligibility, start researching these options at least a year before your planned retirement date. It’s never too early to compare costs and avoid coverage gaps.
10. Consider Tax Diversification Strategies
In retirement, you'll likely draw income from multiple sources, each with different tax treatments. Strategic planning can help minimize your lifetime tax burden. Consider the tax profile of your retirement assets:
Tax-deferred accounts (traditional 401(k), traditional IRA): Withdrawals are taxed as ordinary income.
Tax-free accounts (Roth 401(k), Roth IRA, HSA): Qualified withdrawals are completely tax-free.
Taxable accounts: Withdrawals of principal have no tax impact; only gains are taxed, typically at favorable long-term capital gains rates.
Having money in all three tax buckets gives you flexibility to manage your tax bracket in retirement. For example, in years when you have large one-time expenses, you might draw more from Roth accounts to avoid pushing yourself into a higher tax bracket.
11. Talk to a Fiduciary Financial Advisor
Google's compensation structure is complex, with base salary, bonuses, GSUs, 401(k) matching, HSA contributions, and other benefits all interacting in ways that require careful planning. An experienced financial advisor can help you:
Optimize the timing of GSU sales and tax withholding
Coordinate your Google benefits with your overall financial plan
Develop a comprehensive retirement income strategy
Plan for required minimum distributions from tax-deferred accounts
Create an estate plan that efficiently transfers wealth to your heirs
Perhaps most importantly of all, an advisor can help you avoid costly mistakes and maximize the benefits you've worked so hard to earn. Just make sure to look for a fee-only fiduciary advisor so you know they’re obligated to put your interests first.
Preparing for the Years Ahead
Retiring from Google means leaving behind some of the best employee benefits in the industry, which makes it all the more important to maximize these benefits while you have access to them. Armed with these tips, you can build a solid foundation for a financially secure and fulfilling retirement.
Remember, retirement planning is an ongoing process that should evolve as your circumstances change. Start early, review your plan regularly, and don't hesitate to seek professional guidance when needed. Your future self will thank you for the effort you put in today.
Whether you're planning to retire in 2026 or simply want to be better prepared for the years ahead, these strategies will help ensure you make the most of your Google benefits and enter retirement with confidence.
Ready to Turn Your Google Benefits Into a Retirement You'll Love?
Navigating Google's complex benefits takes guidance that goes beyond generic retirement advice. At TrueWealth Financial Partners, we specialize in helping tech professionals like you maximize every dollar of your hard-earned benefits.
As a fee-only fiduciary advisor based in Bellevue, we don't sell products or earn commissions. We focus exclusively on creating personalized retirement strategies that address all six areas of financial planning:
Investment planning
Tax optimization
Retirement income
Estate planning
Financial positioning
Protection planning
We understand the unique challenges Google employees face when transitioning from RSUs and stock options to retirement paychecks. Our fiduciary financial advisors can give you the peace of mind you need to retire with confidence.
Schedule a free 15-minute intro call with TrueWealth Financial Partners today, and let's explore what your retirement could look like and how you can get there.
Your greatest adventure awaits. Let's get you ready.
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FAQs
Does Google have a pension plan?
No, Google does not offer a traditional defined benefit pension plan. Instead, Google provides a 401(k) defined contribution plan with generous matching.
What happens to my 401(k) match if I leave Google mid-year?
Google's 401(k) matching contributions vest immediately, meaning you own 100% of the company's contributions right away. If you leave Google at any point during the year, you keep all the matching funds that have already been deposited into your account. However, you won't receive any future matches after your employment ends, so it's important to maximize your contributions before your last paycheck.
Can I contribute to both a traditional and Roth 401(k) at Google?
Yes, Google allows you to split your contributions between traditional (pre-tax) and Roth (after-tax) 401(k) options. Many employees choose to contribute to both to create tax diversification in retirement.
When do Required Minimum Distributions (RMDs) begin?
You must begin taking RMDs from your traditional 401(k) and traditional IRAs at age 73. Your first RMD must be taken by April 1 of the year following the year you turn 73, and subsequent RMDs must be taken by December 31 each year. Note that Roth IRAs and Roth 401(k) accounts are not subject to RMDs during the owner's lifetime.
What happens to my GSUs if I retire before they fully vest?
Any unvested GSUs are forfeited when you leave Google, regardless of the reason. This is why timing your retirement date carefully is crucial. Review your vesting schedule for all grants before setting your retirement date. Each grant has its own four-year vesting timeline, and retiring just a few months early could cost you significant equity value.