Key Retirement Ages You Should Know: What to Do at 50, 55, 59½, and Beyond

Retirement Planning Milestones: What to Know from Age 50 and Up

Planning for retirement can feel overwhelming, but it doesn’t have to be. If you know the key ages and what each one means for your finances, you can take small steps that make a big difference down the road.

In this post, we’ll walk through important retirement milestones starting at age 50. Whether you're a few years away or decades out, knowing what to expect can help you plan smarter and feel more confident about the future.

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Supercharge Your Savings

Age 50: Catch-Up Time Begins

At 50, the IRS gives you a nice little bonus. If you're saving for retirement through a workplace plan like a 401(k) or 403(b), you can make “catch-up” contributions. That means you get to put in more money than younger workers.

• In 2025, you can contribute $23,500 to a workplace plan.
• But if you’re 50 or older, you get to add an extra $7,500.
• That brings your total to $31,000 per year.

If you have an IRA (Individual Retirement Account), you can also add more:

• The regular IRA limit is $7,000.
• If you’re 50 or older, you get a $1,000 catch-up boost.

This is a great time to make a strong push toward retirement savings.

Ages 60–63: Super Catch-Up Bonus

From age 60 to 63, there’s something called the “super catch-up.” You get to save even more:

• An extra $11,250 on top of regular limits
• Total possible contribution: $34,750

This is a short window with big opportunity—especially if you're trying to close any retirement gaps.

HSA Catch-ups, too!

Also at 55, you can make catch-up contributions to your HSA (Health Savings Account). You get to add an extra $1,000 per year. HSAs grow tax-free and can be used for medical expenses—even during retirement.

Accessing your Retirement Funds

Age 55: A Hidden Withdrawal Benefit

Here’s something not everyone knows. If you leave your job at age 55 or older, you may be able to take money out of your current workplace retirement plan without paying the usual 10% early withdrawal penalty.

This only works with your most recent employer’s plan—not older 401(k)s or IRAs. But if you roll over your old accounts into your current plan before you leave, you may be able to tap those too.

Age 59½: Penalties Disappear

Strange age, right? But it’s an important one.

At 59½, you can take money from:

• IRAs
• Old 401(k)s
• Your current employer’s plan (in some cases)
• Annuities

No more 10% penalty. You still pay regular income taxes, but the early withdrawal fee is gone. This opens up some flexibility—especially for those retiring a little early.

Social Security and Medicare

Age 60: Survivor Benefits Start

If you’re a surviving spouse, you may qualify for Social Security survivor benefits starting at age 60. This isn’t always well-known, but it can be a valuable support during a tough time.

Age 62: Early Social Security Begins (With a Catch)

This is the earliest age you can begin your own Social Security retirement benefits.

But there’s a catch: if you start at 62, your monthly benefit is permanently reduced—by about 30%.

Also, if you’re still working, there’s an earnings limit. In 2025, if you earn more than $22,320, you’ll lose $1 in benefits for every $2 you go over. This can really add up, so it’s important to think carefully before starting benefits at this age.

Age 65: Medicare Starts

For many, turning 65 means Medicare kicks in. This is huge—it often makes retirement health care more affordable.

But you need to sign up on time. You have a 7-month window:

• 3 months before your birthday month
• Your birthday month
• 3 months after

Miss it? You could face permanent penalties and gaps in coverage. Also important: once you enroll in Medicare, you can’t contribute to an HSA anymore. That switch may even be backdated, so stop HSA contributions early to avoid penalties.

Ages 66–67: Full Retirement Age for Social Security

Depending on your birth year, your "full retirement age" (FRA) falls between 66 and 67. Once you reach FRA:

• There’s no more earnings limit if you’re still working
• Your benefit amount is no longer reduced for working extra
• Delaying past FRA earns you an extra 8% per year until age 70
• This gives you a powerful reason to wait if you can.

Age 70: Maximize Your Benefit

At 70, Social Security benefits stop growing. That’s the maximum monthly benefit you’ll ever receive—so if you’ve waited, you’ll now get the biggest possible check for life.

Managing IRA Withdrawals

Age 70½: Time to Give Tax-Free

This is when you can start making Qualified Charitable Distributions (QCDs).

• Send up to $108,000 from your IRA directly to a charity
• It doesn’t count as income
• It helps satisfy your future Required Minimum Distributions (RMDs)

This is a smart way to give and lower your tax bill at the same time.

Ages 73–75: Required Minimum Distributions Begin

This is when the IRS says, “Okay, now you must start withdrawing money from your retirement accounts.”

• Most people today must start RMDs at age 73
• Younger folks will need to start at 75

If you don’t? You’ll face a penalty—25% of what you should have taken. That can drop to 10% if corrected quickly, but it’s still a big deal.

Once RMDs begin, you can’t convert those amounts to Roth IRAs. That’s why the time before RMDs—your 60s—is a great “tax planning window.”

Plan Smarter, Live Better

Every age we’ve talked about is more than just a number. These are opportunities. If you plan well, you can reduce taxes, increase savings, and enjoy more freedom in retirement.

Start early, stay informed, and don’t be afraid to ask for help. If you’d like a guide through all these milestones, we’re here to help.