Retirement planning isn’t something you can set and forget—it’s a journey that requires regular adjustments, especially as you hit certain milestone birthdays. These key ages are more than just numbers; they represent opportunities to make decisions that can impact your financial well-being in retirement. Whether you’re just starting to think about retirement or you’re well into the planning process, knowing what to do at these critical ages is essential. Let’s take a closer look at the key birthdays to remember in 2025.
Age 50: Boost Your Savings
Turning 50 is a big deal for many reasons, and it’s especially significant for retirement planning. At this age, you can start making catch-up contributions to your retirement accounts. For 2025, that means you can contribute an additional $7,500 to your 401(k) and $1,000 to your IRA. Consider it as a potential way to increase your savings during your peak earning years. Even if you feel behind on your goals, this is a chance to refocus and build momentum.
Age 59½: Accessing Retirement Savings with Care to Minimize Penalties
If you’ve been considering when you can start accessing your retirement accounts without penalties, this is a potential scenario to consider. Once you hit 59½, you can withdraw from accounts like your 401(k) or IRA without the 10% early withdrawal penalty. However, remember that these withdrawals are still subject to income tax, so it’s important to plan strategically. This birthday is a great time to assess whether you’ll need to start taking distributions soon or if you can let your savings continue to grow.
Age 62: Considering Social Security
Age 62 is when you become eligible to claim Social Security benefits, but deciding whether to start right away isn’t always straightforward. While it can be tempting to start collecting early, doing so will reduce your monthly benefit for life. Investing immediately may be suitable for some, while others may consider waiting. Understanding how this fits into your overall retirement strategy is key. If you’re nearing this milestone, it’s a good time to have a conversation about your options.
Age 65: Medicare Enrollment Time
Your 65th birthday is an important milestone for healthcare planning because it marks the start of Medicare eligibility. The Initial Enrollment Period begins three months before your 65th birthday and lasts for seven months. Enrolling on time is crucial to avoid penalties and ensure your healthcare needs are covered. Whether you’re retiring soon or continuing to work, it’s worth reviewing how Medicare fits into your broader plan.
Age 70½: Giving Strategically with QCDs
Here’s one milestone that’s easy to overlook: At age 70½, you can start making Qualified Charitable Distributions (QCDs). This allows you to donate directly from your IRA to a charity, which can lower your taxable income while supporting causes you care about. Even if Required Minimum Distributions (RMDs) don’t start until later, QCDs can be a smart way to give back and manage your taxes.
Age 73: Required Minimum Distributions Begin
Speaking of RMDs, they officially begin at age 73 in 2025 for most retirees. This is the age when the IRS requires you to start withdrawing a minimum amount from your tax-deferred retirement accounts, like IRAs and 401(k)s. Missing an RMD can result in hefty penalties, so it’s important to stay on top of this requirement. This birthday is a great reminder to revisit your withdrawal strategy and ensure it aligns with your financial goals.
Planning Ahead for Your Milestones Birthdays
Every milestone birthday is an opportunity to pause, reflect, and fine-tune your retirement plan. These ages aren’t just checkpoints—they’re chances to make meaningful decisions that can shape your financial future. Whether it’s increasing contributions, claiming benefits, or adjusting your withdrawal strategy, staying proactive can make all the difference.
At Cash Financial, we’re passionate about helping individuals and families navigate these milestones with confidence. If you’re not yet working with us, we invite you to schedule a complimentary financial review. Let’s sit down, review your goals, and create a strategy tailored to your unique needs. Planning for the future doesn’t have to be overwhelming—let’s take it one milestone at a time.
