Milestone Ages to Watch After 50: Retirement, Medicare, and More

Important Ages After 50: Milestones That Matter for Your Money

 

Crossing the 50-year mark is more than just a birthday—it’s the beginning of a new chapter in your financial life. From retirement planning to healthcare decisions, certain ages come with big opportunities (and responsibilities) that can shape your future.

 

Here’s a clear breakdown of the key ages and deadlines to know—and how to take action at each one.

 

Age 50: Supercharge Your Retirement Savings

 

At 50, you unlock the ability to make catch-up contributions to retirement accounts:

 

  • 401(k)/403(b): Add an extra $7,500 (on top of the standard $23,000 in 2025)
  • IRA/Roth IRA: Contribute an additional $1,000

 

This is your window to accelerate retirement savings. If your peak earning years are now, make them count.

 

Age 55: Special Withdrawal Rule

 

Leaving your job at age 55 or older? The IRS allows penalty-free withdrawals from a 401(k) tied to your most recent employer—without the usual 10% early withdrawal penalty.

 

It’s not a green light to raid your retirement, but it’s an option worth knowing if you're considering early retirement or a career shift.

 

Age 59½: Goodbye Early Withdrawal Penalties

 

You can now take withdrawals from IRAs and 401(k)s without the 10% penalty. Taxes may still apply, but the early access barrier is gone.

 

This is often the earliest point many retirees consider tapping into their savings, so it’s worth coordinating withdrawals with your overall tax and income strategy.

 

Ages 60–63: Supercharged Catch-Up Contributions (NEW for 2025)

 

Thanks to recent legislative changes under the SECURE 2.0 Act, starting in 2025, individuals aged 60 to 63 can make even larger catch-up contributions to workplace retirement plans.

 

  • 401(k)/403(b): Eligible participants can contribute the greater of $10,000 or 150% of the standard catch-up amount from age 50.
  • This amount will be indexed for inflation, providing even more savings potential over time.

 

This is a powerful (but narrow) window to ramp up savings right before retirement. If you’re in your final working years, consider this a last-call opportunity to boost your retirement cushion and reduce taxable income.

 

Age 62: The Social Security Decision Begins

 

You’re eligible to start collecting Social Security, but should you? Taking benefits now means locking in a lower monthly amount—up to 30% less than waiting until full retirement age.

 

For some, it makes sense. For others, patience pays. Run the numbers and weigh the trade-offs.

 

Age 65: Medicare Kicks In

 

This is your Medicare enrollment window—and it matters. The initial enrollment period begins three months before your 65th birthday and lasts seven months.

 

Miss it, and you could face lifelong penalties. Even if you’re still working, it’s smart to coordinate your employer coverage with Medicare timing.

 

Age 66 to 67: Full Retirement Age for Social Security

 

Depending on your birth year, Full Retirement Age (FRA) lands between 66 and 67. Claiming Social Security at this point gives you 100% of your earned benefit—no reductions, no bonuses.

 

Make sure this fits into your broader retirement income plan. Timing is everything.

 

Age 70: Max Out Social Security Growth

 

Waiting until age 70 to claim Social Security? That patience gets rewarded. Your monthly benefit grows about 8% per year beyond FRA—so if you don’t need the income earlier, this could mean thousands more annually.

 

Age 73 (starting 2023): Required Minimum Distributions (RMDs)

 

You’re now required to begin RMDs from traditional IRAs and retirement plans. Failing to take them? That could mean a 25% penalty on the amount you should have withdrawn.

 

Planning ahead—by coordinating withdrawals, charitable giving (QCDs), or Roth conversions—can soften the tax hit and optimize your income strategy.

 

Final Thought: These Milestones Aren’t Just Numbers—They’re Levers

 

Each of these ages presents a new opportunity to reassess, adjust, and act. Whether it’s boosting your savings, fine-tuning your withdrawal strategy, or maximizing benefits, staying ahead of these key dates helps you make the most of the retirement phase of life.

 

Want help building a timeline that’s tailored to your situation? That’s what we’re here for.