One of the common questions about retirement is which age you should target so that you’re maximizing your assets. It’s never too early to start discussing the options, so whether you’re in your early 50s or approaching 70, there’s important information for each age range that will help you prepare for that big day. In this episode, find out what you can be doing at each milestone age to put yourself in the best position!
(Click the featured times below to jump forward in the episode)
0:36 – AT AGE 50
- You get to start making catch-up contributions.
- For your IRA or Roth IRA, you can add an additional $1,000 per year for you and your spouse.
- In your 401(k) or 403(b) or 457, you can add another $6,000 per year to max it out.
1:43 – AT AGE 55
- If you are between 55 and 59½ and you still have a 401(k) from the previous job, you can avoid early withdrawal penalties but will still be taxed.
2:31 – AT AGE 59½
- Now you no longer have a 10% penalty for taking money out of your IRA, your Roth, and your 401(k).
- Keep in mind that you still have to pay the tax.
2:53 – AT AGE 62
- This is the first year you can begin to take Social Security.
3:20 – AT AGE 65
- Your primary focus here should be setting up your Medicare benefits.
- If you are not still working at a company that provides healthcare, you will need to find health insurance.
- David shares a client example of a couple paying high prices for healthcare until 65.
4:37 – AT AGE 66 AND 67
- This is full retirement age for Social Security depending on your birth date.
- Now you can receive the full amount of Social Security.
- It’s also the age when salary income from other jobs does not reduce the amount you receive from Social Security.
5:21 – AT AGE 70½
- You have to start taking money out of your IRA and 401(k).
- This money has been tax-deferred so you will pay taxes as you withdraw.
6:45 – WHAT YOU CAN BE DOING NOW
- It’s never too early to have a plan in place.
- A detailed plan is not critical if you’re already saving in your 20s, 30s, or early 40s.
- If you are in your late 40s, 50s, or early 60s, it’s vital to have a real and written plan in place.
- Your retirement age is in your hands.