Key milestone ages as you near and start retirement

As you plan and prepare for retirement, it’s important to understand the key age-based milestones that can significantly shape your financial future. Each one provides you with an opportunity to increase your saving, refine your investment strategy or make financial decisions that align with your retirement goals.

How retirement milestones change by age

Your approach to retirement savings will shift as you enter different stages of life. From your 20s to 40s, your focus was most likely on building wealth. By the time you’re in your 50s or 60s, however, you’ll face new decisions that will influence how and when you retire.

For example, starting at age 50, the IRS allows “catch-up contributions” to retirement accounts like your 401(k) or individual retirement account (IRA), providing an opportunity to maximize savings as you approach retirement. At 62, you have the option to claim Social Security but waiting until full retirement age (or even 70) can often result in a higher benefit. And at 65, Medicare enrollment begins, introducing new considerations for healthcare costs.

Understanding these key moments and making informed decisions may help you maximize savings, reduce your tax liability, and create a more stable retirement income.

Retirement milestones by age

Milestones at age 50: Take advantage of catch-up contributions

After age 50, current maximum annual contributions increase by $1,000 for an IRA and at least $7,500 for a 401(k) or 403(b). These are commonly called catch-up contributions and can make a meaningful difference in your retirement income.

Milestones at age 55: Potential for penalty-free withdrawals from 401(k)

Per the IRS Rule of 55, you may be able to withdraw funds from your current employer-sponsored 401(k) or 403(b) plans without incurring a 10% penalty if you’ve left your job in or after the year you turn 55 and your employer’s plan supports this rule (regular income taxes still apply).

This rule does not apply to IRAs, or if you roll your 401(k) or 403(b) into an individual IRA.

Milestones at age 59½: Penalty-free withdrawals from IRA

You’re allowed to withdraw funds from a traditional IRA or workplace retirement plan at this age without incurring penalties. However, distributions of before tax contributions and earnings may be subject to income taxes.

Milestones at ages 55 & 59½: Consider waiting on withdrawals

Determine if you need the money now, or if you can wait. If you need the money, assess the potential tax impact. Which accounts you draw from first will have a different impact on your tax situation.

At 55 or older, some employers will allow current employees “in-service distributions” to rollover their 401(k) or 403(b) to an IRA penalty-free; check with yours.

Milestones at age 60-63: Increased catch-up contributions

The Secure 2.0 Act raised the current maximum catch-up contribution from $7,500 to $11,250 for individuals aged 60 to 63. For SIMPLE IRAs, the current catch-up contribution limit increased from $3,500 to $5,250 for those in the same age range.

Milestones at age 60: Spousal Social Security benefits may be available

If your spouse or ex-spouse (to whom you were married for at least 10 years, not remarrying until after turning 60) has died, age 60 is the first year you can collect a Social Security survivor benefit.

Milestones at age 62: Eligible for Social Security benefits

This is the earliest age you can collect Social Security retirement benefits. However, collecting your benefit early will result in a lower monthly benefit than if you waited until full retirement age. Also, if you continue to work, one dollar of benefits is withheld for every $2 earned above $23,400 (in 2025) until you reach full retirement age.

Milestones at age 65: Eligible for Medicare

Medicare eligibility begins. If you are collecting Social Security benefits, you are automatically enrolled in Medicare Part A. Otherwise, you have a seven-month period around your 65th birthday month to enroll. Consider whether you want any additional Medicare coverage during this period as well.

Milestones at ages 66, 67: Full retirement age for Social Security

Full retirement age depends on your birth year. 1943-1954: Full Social Security benefits eligibility begins at 66. 1955 through 1959: Eligibility ranges from age 66 to 67. 1960 or later: Full retirement age is 67. Social Security benefits won’t be reduced at this point, but you can get a higher payout by waiting a few more years.

Milestones at age 70: No additional benefit to wait taking Social Security payments

At this point there is no additional advantage in delaying collecting Social Security retirement benefits. Benefits received at age 70 can be up to 32% higher than benefits at your full retirement age.

Milestones at age 73: Required minimum distributions from 401(k)s and traditional IRAs

You are required to take minimum distributions (RMDs) from workplace retirement plans (unless you are still working for that employer and your employer’s plan allows you to delay) and traditional IRAs by April 1 of the year after you turn 73. Required minimums are determined with tables from the IRS and must be calculated each year.

Planning for your retirement milestones with a financial professional

Navigating these milestones can be complex, and the decisions you make can have significant long-term impacts on your retirement. Consider working with a financial professional to help you create a personalized retirement income strategy based on your goals and risk tolerance.

Learn how we can help you plan your retirement income strategy.