Apr 14, 2022

As you approach retirement you may notice some milestone birthdays coming up. What important ages do you need to mark on your calendar? On today’s show, we’ll break down some key birthdays that will impact your retirement plan.

Age 50

Once you turn the big 5-0 you are eligible to start saving through catch-up contributions. This valuable tool is important if you feel behind on your retirement plan. You’re entering the final stretch of retirement and being able to save a bit more is always helpful.

Age 55

If you have a retirement account with your employer and decide to leave that position you can withdraw early from that account without penalty. Keep in mind though, it’s only the 401(k) with that employer that's eligible and it will be taxed.

Age 59 ½

At this age, you can start taking from any retirement account without penalty. You can do a lot of planning during this time and move money around or start taking that money out to live on.

Age 62

Many people watch this age closely as it is the earliest you can start taking Social Security. But should you? It is a reduced benefit at 62 and the longer you wait the larger the benefit will be. So, whether you take Social Security or not at 62 will depend on your plan.

Age 65

This is when you can enroll in Medicare. If you are still employed and have an employer-sponsored plan, you’ll have options. Otherwise, you’ll enroll in Medicare at 65.

Age 66 through 67

Depending on your birthday when you turn 66 through 67, you’ll be at full retirement age. This means you can start taking Social Security without any penalty.

Age 70

As an incentive for people to delay their Social Security benefits, each year you wait to take it adds to your benefit. Up till age 70, your benefits go up 8% per year. This means you’ll get the maximum benefit.

Age 72

From 59 ½ to age 72 you can take money out of your retirement accounts, optionally. But once you turn 72 you must take the required minimum distributions. In the first year, you’ll have a grace period, but you’ll want to plan for RMDs to avoid penalties.

Whatever birthday you are coming up on is the most important. It’s never too late to start planning for the future and for your retirement. If you are curious about how your plan is going or you want to make sure you are prepared for your next milestone birthday, give us a call!

TIMESTAMPS: 

0:12 – Having a milestone birthday

1:31 – Milestone birthday party

2:36 – Age 50

3:47 – Age 55

5:54 – Age 59 ½

6:32 – Age 62

7:30 – Age 65

8:54 – Age 66 and 67

10:17 – Age 70

12:10 – Your next birthday

15:59 – Housing questions in retirement

18:55 – “Should I pay off the house quickly?”

20:38 – “How much money do you need to live on?”

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast