Important Age Milestones in Retirement

Many people craft their retirement plans around a single number – the age at which they intend to retire. However, this approach ignores many of the important milestones to a successful retirement.

There are many different dates you should include in your financial plan. Some provide enhanced benefits – like allowing you to save more in tax-advantaged accounts. Others are important to remember because they signal a shift in your responsibilities or approach to a successful retirement.

Retirement Planning in Your 50s

Your 50s are an especially important time in your retirement planning journey. They often mark the final push to save for the future and the money you set aside is essential for covering your expenses after you retire.

Throughout your 50s, you may be eligible to contribute a higher amount to certain tax-advantaged accounts. This decade also marks the first dates you can withdraw from retirement accounts without penalty.

Age 50: Catch-Up Contributions for Certain Retirement Plans

At age 50, you gain the option for “catch-up contributions.” These are additional amounts you can contribute to IRAs, 401(k)s, and similar plans to save more for retirement.

In 2025, the catch-up contribution amount is $1,000 for Traditional and Roth IRAs and $3,500 for SIMPLE IRAs. The additional contribution allowed for 401(k)s and similar plans is even higher at $7,500.

Age 55: HSA Catch-Up Contributions, Penalty-Free Withdrawals from Some Plans

Catch-up contributions are also allowed for Health Savings Accounts [HSA] at age 55. These accounts are a powerful addition to your retirement savings strategy and can even be used to pay for Medicare Parts A, B, C, and D premiums. The catch-up contribution provision allows you to contribute an additional $1,000 in 2025.

Also at age 55, you can take a withdrawal from a 401(k) after leaving a job without owing the 10% early withdrawal penalty. This ‘separation from service’ exception applies if you leave the company in the calendar year that you turn 55 or later.

Age 59 ½: Penalty-Free Withdrawals from IRA and 401(k)

At age 59 ½, you can finally start to spend your retirement savings without owing an early withdrawal penalty. This date applies to both IRAs and 401(k)s.

Retirement Planning in Your 60s

Your 60s are the decade when retirement becomes a reality. You will likely need to reevaluate your investments and possibly switch to an income-driven focus. You also become eligible for key government benefits that can aid you in achieving retirement success.

Age 60: Social Security Survivor Benefits Available and “Super Catch-Up” For 401(k) and SIMPLE IRA

Age 60 is the earliest date you are eligible to claim Social Security survivor benefits in most cases. However, if you choose to begin receiving these benefits before your full retirement age – 67 for people born after 1960 – your monthly benefit is reduced.

Also at age 60, you may be eligible for a new “super catch-up” contribution to your 401(k) or SIMPLE IRA. The new limit was added for tax year 2025 and allows people aged 60 – 63 to add an additional $11,250 to 401(k) plans or $5,250 to a SIMPLE IRA instead of the standard catch-up amount.

Age 62: Social Security Retirement Benefits Available

You can claim Social Security retirement or spousal benefits beginning at age 62. Like survivor benefits, these types of income are reduced if you claim them before reaching full retirement age.

Age 65: Medicare Eligibility

Most people become eligible for Medicare at age 65. If you are already receiving Social Security benefits at this time, you will be automatically enrolled in Medicare Parts A and B. However, you can choose to delay Medicare benefits in some cases if you are still working.

Age 66 – 67: Social Security Full Retirement Age

Your Social Security full retirement age is the age at which you receive 100% of your benefits. It is age 66 for those born between 1943 and 1954, between age 66 and 67 for those born between 1955 and 1959, and age 67 for those born after 1960.

Retirement Planning in Your 70s

Once you are in your 70s, you are likely to have a few years of retirement under your belt. This gives you a clear understanding of your expenses and income needs that you may not have fully grasped before retiring.

During this time, you should take a critical look at your investments and ensure that they meet your income needs. You will also need to begin taking distributions from your retirement accounts if you haven’t already. The requirement to withdraw from your IRAs and 401(k)s will likely raise new tax questions that an experienced financial advisor can help you answer.

Age 72 – 75: Required Minimum Distributions

The date on which you must begin taking distributions from your IRAs varies based on your birth year. Those born in 1950 or earlier must begin Required Minimum Distributions [RMDs] at age 72. Those born between 1951 and 1959 must begin at age 73, and those born in 1960 or later must begin at age 75.

Retirement Planning in Your 80s and 90s

In your later years of retirement, preserving income becomes paramount. Inflation, rising healthcare costs, and even long-term care needs can cause your portfolio to dwindle more rapidly than you expected. Your investment plan should adapt to changing income needs and possibly become more conservative to account for a lower risk tolerance.

Your retirement planning journey is unique, and an experienced financial advisor can provide the personalized guidance you need. They can help you maximize savings, gain the benefits of tax-advantaged accounts, and aid you in transitioning your portfolio throughout your life.

Plan Your Dream Retirement at Any Age with Brookstone Wealth Management

At Brookstone Wealth Management, we help people of all ages in preparing to turn their retirement dreams into a reality. Whether you are just starting to save or are happily retired, our team has the tools and experience to help you navigate life’s important milestones.

Our comprehensive wealth management program, Financial Fingerprint®, brings together the most important aspects of your financial life into one easy-to-understand plan. Best of all, it is backed by our team of tax, legal, and investment professionals that put your financial well-being at the center of every decision.

To get started with Financial Fingerprint®, contact a member of our team today.