Transitioning to retirement

Your retirement planning strategy may change as you near the end of your career, but it doesn’t ever stop — even after you retire. There are some important things to think about at eight different ages as you progress to and through retirement.

• Age 50 — Consider saving beyond the standard IRS limits via catch-up contributions, on the home stretch to retirement.

• Age 59½ — Are you retiring ahead of schedule? Well done. Now you can take distributions from your workplace savings plan without an early-withdrawal penalty.

• Age 62 — Congratulations! You may be eligible for Social Security. But think twice before taking Social Security now. It could mean a 25-30% reduction in the amount you'll receive. If you’re still working, the amount could be reduced even more.¹

• Age 65 — Here’s to your health. Consider signing up for Medicare. Don’t delay — missing your window could mean higher Medicare Part B and Part D premiums and lead to your supplemental coverage being denied.¹

• Age 66 — Being older has its advantages. Those born before 1957 are eligible for full Social Security benefits. If you were born between 1957 and 1959, you’ll have to wait a few months longer. You’ll reach full eligibility between six and 10 months after your 66th birthday.¹

• Age 67 — If you were born in 1960 or later, you’ve reached the magic number for full Social Security benefits. This is also the age at which your Social Security benefits are no longer reduced if you’re still working.

• Age 70 — Go ahead, you’ve earned it. Consider taking your Social Security benefit now.

• Age 70½ (if you turned 70½ on or before December 31, 2019) or age 73 — As of January 1, 2023, the IRS generally requires you to start taking required minimum distributions (RMDs) at age 73. (If you turned 72 in 2022 and delayed your first-time RMD until April 1, 2023, you must take your 2022 RMD by April 1, 2023, and your 2023 RMD by December 31, 2023.)