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Planning for Retirement at Every Retirement Age Milestone

graphic illustrates what to know at every retirement age milestone to help your retirement planning

Download What to Know at Every Retirement Age Milestone (PDF)

How many retirement age milestones have you reached, and how many more are on the horizon? While there are many pieces to the retirement-planning puzzle — from collecting Social Security and signing up for Medicare to contributing to your retirement — these milestones could help you discover if you're on track to enter your golden years on your terms.

At Age 50

401(k)s and 403(b)s: You can save up to $26,000 — an additional $6,500 over the regular $19,500 limit — and defer taxes up to $26,000.

Traditional or Roth IRAs: You can save up to $7,000 — an additional $1,000 over the normal $6,000 limit.

*Based on 2021 limits

At Age 55

401(k)s and 403(b)s: If you retire, quit or are laid off, you can take a withdrawal within the same calendar year without a 10 percent early withdrawal penalty.

At Age 59 1/2

Retirement Accounts: The 10 percent early withdrawal penalty on distributions from retirement accounts — including 401(k)s, 403(b)s and IRAs — goes away once you reach this age. You will still need to pay income tax on withdrawals from qualified accounts.

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At Age 62

Social Security: This is the earliest eligible age at which you can start taking Social Security.

Early Retirement: Social Security benefits can be permanently reduced by up to 30 percent if you sign up at this age. If you bring in more than the annual earned income limit of $18,960 and collect Social Security benefits, you can temporarily lose some or all of your benefits.

At Age 65

Medicare: Eligibility begins at this age, and you can sign up as early as three months before you reach age 65. Premiums for Medicare parts B and D can permanently increase and you could be denied supplemental coverage if you do not sign up during the initial enrollment period.

Health Savings Accounts: You can withdraw from an HSA for nonmedical expenses without penalty. Distributions are still taxed like an IRA for nonqualified expenses.

At Age 66

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

Delayed Retirement: If you postpone collecting Social Security benefits after reaching your full retirement age, your benefits will increase by 8 percent every year you delay until age 70.

At Age 67

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

At Age 72

Traditional IRAs and 401(k)s: Account distributions are required after this age, and you must pay income tax on each withdrawal. The first distribution must be taken by April 1 of the year after you turn age 72. If you fail to withdraw the correct amount, you will be taxed a penalty of 50% of the amount you should have withdrawn.

Learn how you could prepare for retirement at any age milestone with Western & Southern.

IRS (https://www.irs.gov)
Social Security Administration (https://www.ssa.gov)
Medicare (https://www.irs.gov)
AARP (https://www.aarp.org/health/medicare-insurance/info-03-2008/ask_ms__medicare_.html)

Live More & Worry Less

Live More & Worry Less

We have financial professionals ready to assist you on your retirement journey.

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Information provided is general and educational in nature, and all products or services discussed may not be provided by Western & Southern Financial Group or its member companies (“the Company”). The information is not intended to be, and should not be construed as, legal or tax advice. The Company does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. The Company makes no warranties with regard to the information or results obtained by its use. The Company disclaims any liability arising out of your use of, or reliance on, the information. Consult an attorney or tax advisor regarding your specific legal or tax situation.