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.

2019 IRS limits

$19,000 for pretax and Roth contributions
$25,000 for ages 50 or older

  • 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

Waiting can pay off

For each year you wait to claim Social Security, your benefit can increase by 7-8% (until you reach age 70).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 between 1943 and 1954 are eligible for full Social Security benefits. If you were born between 1955 and 1959, you’ll have to wait a few months longer. You’ll reach full eligibility between two 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.1
  • Age 70 – Go ahead, you’ve earned it. Consider taking your Social Security benefit now.
  • Age 70½ – You need to start taking annual required minimum distributions (required by the IRS) from your retirement account. Make sure to do this to avoid any penalties.

1 Social Security Administration,

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

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