Getting close to retirement can feel like juggling a dozen decisions with no clear order—Social Security, Medicare, income planning, taxes, and more.
In this video, Brent Matthew of Scottsdale Wealth Advisory walks through a simple retirement timeline by age, so you can see what milestones are coming up and when they typically matter—plus where annuities may fit for some retirees.
In this retirement timeline, he covers:
- Age 50: Catch-up contributions (401(k) and IRA)
- Age 59½: Penalty-free retirement account withdrawals
- Age 62: When Social Security can start (and what to consider)
- Age 65: Medicare eligibility and enrollment timing
- Age 66–67: Full retirement age (FRA) and coordinating benefits
- Age 70: The latest age to delay Social Security
- Age 73: Required minimum distributions (RMDs) and tax considerations
- How annuities may be used to bridge income needs or smooth taxable income (depending on goals)
If you’d like to talk through your own timeline and next steps, reach out to schedule a conversation at https://calendly.com/BrentMatthew or call us at (480) 247-9090.
Transcript
Hi, I’m Brent Matthew with Scottsdale Wealth Advisory. If you’re getting close to retirement, it can feel like there’s a long checklist of things to take care of, but not always a clear order. Between Social Security, Medicare, income planning, and taxes, it’s easy to feel overwhelmed or unsure about what to focus on first.
Retirement Planning Checklist: A Simple Retirement Timeline
In this video, I’ll walk you through a simple retirement timeline so you’ll know what to do and when to do it. Let’s start with some of the earlier milestones.
Age 50 Retirement Planning: Catch-Up Contributions for 401(k) and IRA
At age 50, you can become eligible to make catch-up contributions to your retirement accounts like a 401(k) or IRA. If you’re behind on savings, this is a great opportunity to set more aside each year.
Age 59½ Rule: Withdrawing from Retirement Accounts Without Early Withdrawal Penalties
At age 59½, you can begin withdrawing from your retirement accounts without early withdrawal penalties. If you’re planning to retire early, this is an important number to keep in mind.
Social Security at 62: Earliest Age to Claim Benefits and Tradeoffs
Age 62 is the earliest age you can claim Social Security benefits. But keep in mind, your benefit will be reduced permanently if you claim early. Depending on your income needs and life expectancy, it might make sense to wait.
Medicare at 65: Eligibility, Enrollment Timing, and Late Enrollment Penalties
Most people know that age 65 is when you become eligible for Medicare. Even if you’re still working, you’ll want to review your Medicare options and avoid late enrollment penalties. Healthcare planning becomes a big part of your retirement strategy at this stage.
Full Retirement Age 66 or 67: Social Security Benefits and Spousal Coordination
By the time you reach age 66 or 67, depending upon the year you were born, you’ll hit your full retirement age for Social Security. At this point, you can claim your full, un-reduced benefit. It’s also a smart time to review how your benefits coordinate with your spouse’s and think about how to structure income if you plan to keep working.
Social Security at 70: Delayed Retirement Credits and Maximum Monthly Benefit
Age 70 is the latest age at which you can delay Social Security. At this point, your monthly benefit has grown as much as it’s going to, thanks to delayed retirement credits. If you’ve waited until now to claim, you’ll receive the highest benefit possible.
RMD Age 73: Required Minimum Distributions and Retirement Tax Planning
Age 73 is when required minimum distributions or RMDs begin. The IRS starts requiring you to withdraw certain amounts from your traditional retirement accounts, whether you need that money or not. Planning ahead can help reduce the tax impact.
Annuities in Retirement: Where Guaranteed Income Can Fit in the Timeline
So where do annuities fit into this timeline? Some people purchase annuities in their early 60s to lock in guaranteed income that begins later, around age 70 or beyond. Others use annuities to help bridge the gap between retirement and when Social Security or RMDs begin. They can also be helpful in smoothing out your taxable income in retirement, especially paired with other income sources.
Putting It All Together: Retirement Income Planning and Next Steps
As with everything else, whether or not an annuity is right for you depends on your goals and how your full retirement picture fits together. When you understand these key milestones, retirement planning becomes more manageable. You don’t have to figure it all out at once; you just need to know what’s coming and when to act.
Talk Through Your Retirement Timeline With a Financial Advisor
If you’re not sure what your next step should be or whether your current timeline makes sense, I’d be happy to walk through it with you. Thanks for watching!
