9 Critical Retirement Age Milestones You Can’t Afford to Miss
You probably know the significance of age 65 (Medicare!). But how about age 50? Or age 59½? Or 62? These are just a few of the important milestones that retirees and future retirees need to prepare for.


Most Americans still think about retirement as something that will happen around age 65 – give or take a few years.
That’s when you reach the traditional milestones: Medicare kicks in, and Social Security is available should you need or want to start making withdrawals.
But there are other deadlines – both before and after your mid-60s – that are important to keep in mind if you want to make the most of your investments, avoid government penalties and save on taxes. Here’s a quick checklist:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Age 50: If you got a late start with your retirement savings or always wished you’d socked away more money, this is the time to do it. With “catch-up” contributions, workers 50 and older can start saving extra money and defer taxes on as much as $24,000 in 401(k) and 403(b) plans in 2017. (That’s the maximum $18,000 contribution plus a $6,000 “catch-up.”) Those with traditional or Roth IRAs can contribute an extra $1,000 to the regular limit of $5,500.
Age 55: If you’re 55 or older and you retire, quit or get laid off, you can take a withdrawal from your 401(k) in that same calendar year without having to pay the 10% early withdrawal penalty -- but only from the account associated with the job you most recently left. (Public safety employees can avoid the penalty if they leave a job in the year they turn 50 or later.)
Age 59½: The 10% early withdrawal penalty on retirement account distributions goes away once you reach 59½. Keep in mind, though, that you'll still have to pay income tax on traditional 401(k) and IRA withdrawals.
Age 62: This is a big year! You’re finally eligible to take Social Security – and many Americans do begin payments at the age of 62. But if you can hold off awhile, it’s probably wise. Your payments could be reduced permanently by around 30% if you sign up this early. Also, if you work and collect Social Security benefits at the same time, some or all of your payments could be temporarily withheld.
Age 65: You’ll become eligible for Medicare at 65 and can sign up as early as three months before your 65th birthday. Get on it! Unlike Social Security, there’s a downside if you don’t sign up on time: Your Medicare Part B and D premiums could permanently increase, and you could be denied supplemental coverage. If you expect to keep working, talk to someone in human resources about how this affects your group health plan.
Age 66: First-wave Baby Boomers, rejoice! If you were born between 1943 and 1954, you’re eligible to take full Social Security payments when you turn 66. (Those born between 1955 and 1959 will have to wait a few months longer.) Just remember: If you postpone collecting your payments, they’ll continue to increase by 8% every year you delay until age 70. (Talk to your financial adviser about whether waiting is good for you when it comes to tax consequences.)
Age 67: If you were born in 1960 or later, this is your year. Your eligibility age for full Social Security payments is 67.
Age 70: Time’s up: There’s no benefit in waiting to collect your Social Security payments past age 70, so enjoy!
Age 70½: Distributions from traditional IRAs and 401(k) accounts become required after age 70½, and you must pay income tax on each withdrawal. These are the dreaded “required minimum distributions” (RMDs) you no doubt have heard about from friends and financial experts. If you fail to withdraw the correct amount, the tax penalty is steep: 50% of the amount you should have withdrawn. So talk to your adviser about determining what the correct amount is, and while you’re at it, get strategies for reinvesting and minimizing taxes.
Whew! That’s more than 20 years you’ll need to keep track of if you want to make the most of your savings and benefits. But missing or dismissing one of these critical milestones could potentially impact tens of thousands of your hard-earned dollars – or more.
Keep this list handy - and stay on top of any policy changes or updates – while you’re making your plans for a long, happy retirement.
Kim Franke-Folstad contributed to this article.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Michael R. Andersen is the founder and president of Andersen Wealth Management, a Registered Investment Adviser. He is an Investment Adviser Representative and a licensed fiduciary. A firm believer in financial education, Andersen holds regular informational seminars for clients and the community, and he is the host of the "Wise Money" radio show.
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort Benefits
Plan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
By Carla Ayers
-
SRI Redefined: Going Beyond Socially Responsible Investing
Now that climate change has progressed to a changed climate, sustainable investing needs to evolve to address new demands of resilience and innovation.
By Peter Krull, CSRIC®
-
Here's When a Lack of Credit Card Debt Can Cause You Problems
Usually, getting a new credit card can be difficult if you have too much card debt, but this bank customer ran into an issue because he had no debt at all.
By H. Dennis Beaver, Esq.
-
Going to College? How to Navigate the Financial Planning
College decisions this year seem even more complex than usual, including determining whether a school is a 'financial fit.' Here's how to find your way.
By Chris Ebeling
-
Financial Steps After a Loved One's Alzheimer's Diagnosis
It's important to move fast on legal safeguards, estate planning and more while your loved one still has the capacity to make decisions.
By Thomas C. West, CLU®, ChFC®, AIF®
-
How Soon Can You Walk Away After Selling Your Business?
You may earn more money from the sale of your business if you stay to help with the transition to new management. The question is, do you need to?
By Evan T. Beach, CFP®, AWMA®
-
Two Don'ts and Four Dos During Trump's Trade War
The financial rules have changed now that tariffs have disrupted the markets and created economic uncertainty. What can you do? (And what shouldn't you do?)
By Maggie Kulyk, CRPC®, CSRIC™
-
I'm Single, With No Kids: Why Do I Need an Estate Plan?
Unless you have a plan in place, guess who might be making all the decisions about your prized possessions, or even your health care: a court.
By Cynthia Pruemm, Investment Adviser Representative
-
Most Investors Aren't as Diversified as They Think: Are You?
You could be facing a surprisingly dangerous amount of concentration risk without realizing it. Fixing that problem starts with knowing exactly what you own.
By Scott Noble, CPA/PFS