Retirement Planning Milestones
Age is just a number, except when it comes to retirement planning. As you celebrate the birthdays below, be sure to consider the important financial milestones that come along with them. After all, what gift could be better than a financially secure retirement?
Now’s the time to start making catch-up contributions of up to $1,000 annually to your Individual Retirement Account (IRA), or $6,500 annually to your qualified employer-sponsored plan.
At age 55, you may be eligible to start receiving penalty-free distributions from a qualified retirement plan if you’ve stopped working. To learn more, visit irs.gov/taxtopics/tc558
Age 59 ½
You’re now eligible for penalty-free distributions from your IRA, 457(b), pension plan or qualified employer-sponsored plan!
At age 62, you can now claim Social Security benefits, but think carefully before you do! Collecting your benefits early may reduce them by as much as 30%. Waiting until your full retirement age will ensure you collect your full benefits. To find out your full retirement age, visit SSA.gov/planners/retire
You’re eligible for Medicare! Actually, you’re eligible to sign up three months before your 65th birthday. Be sure to sign up early as waiting can lead to higher premiums.
You’ll reach full retirement age at some point between ages 66 and 67. Reaching your full retirement age means you qualify to receive full Social Security benefits!
If you haven’t already, file for Social Security benefits! Your Social Security benefits won’t increase after you reach age 70, so there’s no reason to wait any longer!
When you turn age 72, you’ll need to start taking your Required Minimum Distribution (RMD) from your IRA or employer-sponsored plan. You can wait to take your RMD for the first year until April of the second year. However, you must take the RMD for the second and all subsequent years by December 31 of that year. If you still work for your employer, you may be able to delay taking your RMD from their plan. Failure to take your RMD on time can result in a 50% tax penalty to the amount you should have taken.
Are you concerned your currents savings may not be enough to last through retirement? An annuity from Great American Life Insurance Company® can provide guaranteed income for life or for a specified number of years. Talk with your financial professional to find out if an annuity is right for you!