Timeline for Retirement

Major retirement decisions are not all made at age 65. The reality is there are a number of important dates, and many begin as early as age 50. To have the best chance for a safe and secure retirement, it's important to look at a series of decision dates to make sure you make the choices that are right for you.

During the year you turn age 50: You can begin to make catch-up contributions to 401k, IRA and many other retirement accounts. A catch-up contribution is an amount beyond the normal contribution limits.

During the year you turn age 55: If you separate from service with your employer during or after this year, you can receive amounts from that employer's retirement plan without the 10% federal tax penalty.

At age 59 1/2: If you are eligible to take withdrawals from a retirement account, you can now take withdrawals without the federal 10% tax penalty. Of course, the more you leave in the accounts, the more they can grow tax-deferred.

At age 62: You can now begin to receive Social Security benefits. However, by waiting longer, you could receive a larger monthly benefit.

At age 65: You're eligible for Medicare on the first day of the month that you turn 65. You might want to consider enrolling, because if you don't enroll during the month you turn 65 and wish to enroll later, you may be required to pay a higher premium. You should give careful thought as to what is right for your particular circumstance.

At age 66: If you were born between 1943 and 1954, you are now eligible for full Social Security benefits.

At age 67: If you were born in 1960 or later, you are now eligible for full Social Security benefits.

At age 70 1/2: Begin taking required minimum distributions (RMDs) from most retirement accounts by this age. If you don't, you could incur significant tax penalties.
As you can see, there are a number of significant decision points which can have a huge impact on your retirement strategy. Consider your retirement timeline and think about what may be appropriate for your situation, and we can help you build that into your plan.