Are you getting ready to retire? It’s a big life change, and planning ahead can help make all the difference. 

To help you make the most of this next phase in your life, we’d like to provide some information on several important ages regarding retirement planning. 

Not only should these dates help mark when you get certain benefits or are allowed access to certain resources, but they will also serve as reminders of how far you’ve come and where you’re headed. 

In this blog post, we’ll break down each age important for successful retirement planning to help reduce any surprises that may come up in retirement. 

At Age 50, Make Catch-Up Contributions

Turning 50 is a significant milestone in anyone’s life – but if you’re considering retirement, it’s an especially important year. 

At age 50, you may become eligible to make catch-up contributions to many of your retirement accounts, which means you could sock away even more money for your golden years. 

This is a good time to reassess your retirement plans, make any necessary adjustments, and start thinking about your post-career life. 

Whether you’re dreaming of traveling, starting a new hobby, or just enjoying time with family and friends, turning 50 can be exciting as you begin preparing for the next phase of your life.

At Age 55, Begin Estimating Your Retirement Income

At the age of 55, many consider themselves in the latter half of their careers. As a result, they may start talking to their financial planner and making the necessary preparations for their post-work life coming up in the next 5-10 years.

Some people choose to retire at age 55. However, this often requires careful financial planning to help ensure they have saved enough to sustain themselves throughout their retirement years which could last 25+ years. 

Others may continue working in their current careers, reducing their hours or transitioning to part-time work while also beginning to explore their options for what comes next. 

Whether you’re planning to retire or not, 55 is an important age to reflect on your retirement timeline and ensure you’re on track to meet your long-term financial goals.

At Age 59 1/2, You Become Eligible To Make Withdrawals From Retirement Arrangements With No Penalty

59 1/2 is the age when you become eligible to withdraw money from your traditional IRA or 401(k) plan without facing the 10% federal early withdrawal penalty. 

However, before you start spending, remember that any withdrawals you make will be taxed as ordinary income, so it’s important to strategize how to use your retirement funds in the most tax-efficient way possible. 

At Age 62, You Can Start Receiving Social Security

Turning 62 is a major milestone when it comes to planning for your post-retirement life as it marks the earliest age you can file for Social Security benefits. 

Of course, this doesn’t mean you have to retire at 62 or even claim benefits just because you’re eligible for Social Security benefits. 

You could keep working and delay your benefits to receive a more significant monthly payment later on. Or you could claim Social Security benefits while you continue to work, however there may be tax implications and benefit reductions if you don’t follow certain rules.

At Age 65, You Become Eligible For Medicare

At age 65, you become eligible for Medicare to enhance your health coverage, which can help alleviate the burden of paying for medical expenses. 

Enrollment in Medicare is worth considering, as delaying enrollment beyond the month you turn 65 could result in higher premiums for Medicare Part B. 

Take proactive steps to secure your healthcare coverage and avoid having to pay for potential high medical costs. 

At Age 66, You Are Eligible For Full Social Security Benefits If Born Between 1943 & 1954

Age 66, if born between 1943 and 1954, is when you’re eligible to receive full Social Security benefits.

Age 66 is also when the government no longer penalizes you for earning money outside your Social Security benefit. 

Some of us have been working for over four decades by this timeframe, and having the option to take a breather and enjoy your life can sound pretty enticing. 

However, this doesn’t mean retirement is the only path forward. 

Some individuals continue working beyond 66 to boost their savings, earn a higher salary, or pursue a passion. Your post-66 plans are all up to you!

At Age 67, You Are Eligible For Full Social Security Benefits If Born in 1960 Or Later

Age 67 is when you become eligible for full retirement benefits from Social Security if you were born in 1960 or later. 

However, it’s important to note that you don’t have to retire at 67 if you don’t want to (or can’t afford to). In fact, some people are choosing to work well into their 70s these days. That being said, age 67 does represent a shift in your retirement planning. 

You’re getting closer to the end of your working years, and it’s an excellent time to reassess your goals, savings, and expenses. 

Whether you’re planning to retire or continue working, it’s always wise to stay on top of your finances and ensure you’re on track for the retirement you want.

Age 70 Is The Maximum Benefit Amount For Social Security

Many people wonder what happens at age 70 regarding their retirement plans. 

At 70, there are a few key things to keep in mind. 

The first is Social Security. If you still need to start receiving benefits, you should consider beginning doing so at age 70. At this point, you’ll receive the highest possible monthly benefit amounts, as waiting any longer will not increase your benefit. 

Also, it’s worth considering whether you want or need to continue working. 

If you’re still working at 70, you can continue contributing to retirement accounts like a 401(k) or IRA, which can be beneficial if you’re trying to save more money for retirement. 

At Age 73, You Are Required To Start Taking Required Minimum Distributions (RMDs)

When you hit 73 years old, there are certain rules you must follow when it comes to your retirement income. 

Namely, the IRS requires that you start taking required minimum distributions (RMDs) from your retirement accounts by April 1st, following the year in which you turn 73. 

These RMDs are calculated based on the balance of your accounts and your life expectancy, and failing to take them can result in excise taxes.

But don’t stress too much – plenty of resources and professionals are out there to help you navigate this process and help ensure you’re pulling your RMDs correctly and making the most of your retirement savings.

Conclusion 

Understanding the important ages in your retirement timeline can help contribute to a successful and fulfilling retirement. These milestones serve as helpful reminders to assess your financial plans, make necessary adjustments, and prepare for the next phase of life. 

From the age of 50, when catch-up contributions become available, to age 73, when required minimum distributions begin, each milestone presents unique opportunities and considerations. 

Remember that retirement doesn’t have to be a rigid concept; you have some flexibility to choose when to retire, continue working, or explore new passions. By staying informed and proactive, you can ensure you’re on track to achieve your long-term financial goals and make the most of your golden years.

No matter where you are in your retirement process, Intelliplan Financial is here to help. As your financial advisor, we can utilize our knowledge and retirement calculators to help estimate the retirement income that you need. Schedule a complimentary consultation today to get started. 

Disclosure: Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC-registered investment adviser.  Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice. Insurance services offered through Intelliplan Financial are not affiliated with PCA.