Important Birthdays: Milestones That Can Impact Your Financial Future
Not all birthdays are created equal—especially when it comes to your financial future.
When most people think about birthdays, they think about cake, candles, and maybe dreading that next number. But in the financial planning world? Some birthdays are worth celebrating—not because of the number, but because of what they unlock for your financial future.
Here are a few milestone ages that can have a major impact on your retirement plan:
Age 50 – Catch-Up Contributions Begin
Once you hit 50, you’re allowed to start making “catch-up” contributions to your retirement accounts. That means extra room to save—up to $7,500 more in your 401(k) and an additional $1,000 in your IRA in 2025. It’s one of the best tools we have to boost retirement savings later in the game.
Age 59½ – Access Without Penalty
Half birthdays aren’t usually worth noting, but this one is a big deal. At 59½, you can take withdrawals from IRAs and retirement plans without that early withdrawal penalty. Income taxes still apply, but this opens up flexibility if you’re easing into retirement.
Age 62 – Earliest You Can Claim Social Security
This is the first age you’re eligible to start collecting Social Security benefits. For some people, it makes sense—maybe you’ve retired early, need the income, or have health concerns that could impact longevity. Others might benefit from waiting to receive a higher monthly check.
Taking Social Security at 62 results in a reduced benefit for life, but it may still be the right move depending on your personal and financial situation. Like many things in planning, there’s no one-size-fits-all answer. It’s about weighing the trade-offs and deciding what’s best for you.
Let’s look at your full picture and talk through the pros and cons before making a decision.
Age 65 – Hello, Medicare
It’s time to enroll in Medicare. Even if you’re still working, enrolling at the right time is key to avoiding future penalties. There’s a lot to consider—timing, Part B, supplement plans—so don’t go it alone.
Age 66–67 – Full Retirement Age for Social Security
Depending on when you were born, your full retirement age (FRA) is somewhere in this range. Once you reach FRA, you can collect your full Social Security benefit with no reductions.
Age 70 – Maximum Social Security Benefit
If you delay taking Social Security until now, congrats—you’ve earned the highest monthly benefit possible. There’s no advantage to waiting past 70, so it’s time to file.
Age 73 (and soon 75) – Required Minimum Distributions (RMDs)
Once you reach 73 (and eventually 75, depending on your birth year), you’re required to start taking distributions from your traditional retirement accounts. These withdrawals are taxed, so we’ll want to be strategic to keep you in a good tax position.
Let’s Plan Around Your Timeline
These birthdays might not come with balloons, but they’re worth remembering. Each one opens up choices—and sometimes, consequences—if you’re not prepared.
That’s where we come in.
Whether you're approaching one of these milestones or helping a loved one through theirs, Mark and I are here to walk you through it—step by step. From timing Social Security and navigating Medicare to managing RMDs and maximizing your retirement income, we’ll help you make informed, confident decisions that support your goals.
Ready to talk through your timeline? [Schedule a meeting with us here.]
