Five of the most important ages for retirement planning
Retirement can seem so far away when you’re in your 20’s. As you approach your 40’s, however, you should begin to view retirement and retirement planning in a different light. As a matter of fact, there are certain considerations you should make at age 50, 59 ½, 65, 66, and 70 ½ to ensure you enjoy the retirement life you envision and avoid costly penalties.
Continue reading to learn more about some of the most important ages for retirement planning and click the link in each section to watch a short video on the associated age.
When you turn age 50, you’ll become eligible to save more and make higher contributions to your 401(k) and IRA accounts than the standard amount. This may also qualify you for higher tax deductions.
Watch The Most Important Ages for Retirement Planning: Age 50 video to learn more about how turning 50 can impact your retirement savings.
Age 59 ½
Traditional retirement accounts like IRAs and 401(k)s have a 10% early withdrawal penalty if you take a distribution before age 59 ½ in addition to any income tax due with the withdrawal. By waiting until you’re 59 ½ to starting taking withdrawals, you’ll get to keep an additional 10% of your money.
Watch The Most Important Ages for Retirement Planning: Age 59 ½ video to learn more about withdrawal penalties and withdrawal penalty exceptions.
You will be able to sign up for Medicare during a seven-month period starting three months prior to your 65th birthday. It’s important to sign up for Medicare on time to avoid any late enrollment penalties that could be permanently applied to your premiums.
Watch The Most Important Ages for Retirement Planning: Age 65 video to learn more about the healthcare services, penalties and eligibility.
If you’re a baby boomers born between 1943 and 1954, you’ll be eligible to begin claiming the full Social Security benefit you’ve earned when you turn 66. However, if you start before or after age 66, your benefit could be less or more than the full amount – respectively.
Watch The Most Important Ages for Retirement Planning: Age 66 video to learn more about Social Security benefits.
Age 70 ½
You’ve been saving for quite some time, and now it’s time to enjoy your retirement. Whether you need it or not, you’ll be required to take distributions from your traditional IRAs, traditional 401(k)s and Roth 401(k)s after age 70 ½.
Watch The Most Important Ages for Retirement Planning: Age 70 ½ video to learn more about Minimum Required Distributions.
Contact a Voya Financial Advisor to learn more about key milestones and steps you can take to create the live you envision in retirement.
This video is an editorial product of U.S. News & World Report, L.P. Voya Financial was not involved with the preparation of the content of this video.