Even if retirement is still years away, keeping track of key milestones can help you avoid costly penalties and make…
Even if retirement is still years away, keeping track of key milestones can help you avoid costly penalties and make smarter decisions about taxes, healthcare and Social Security. Timing matters, especially when it comes to claiming benefits and meeting important enrollment and withdrawal deadlines.
Here are some important retirement dates:
Age
Trigger event
Action to Take
49 or younger
Retirement contributions
Max out 401(k) and IRA contributions if possible.
50
Catch-up contributions begin
Use higher 401(k) and IRA limits.
55
Possible penalty-free withdrawal from current employer’s 401(k) if you’re leaving your job, i.e. rule of 55
Check if you qualify before rolling over funds.
59 1/2
Penalty-free retirement withdrawals
Avoid the 10% early withdrawal penalty.
60 to 63
SECURE 2.0 super catch-up tier
Contribute more if your workplace plan allows it.
62
Earliest age to claim Social Security
Understand the permanent benefit reduction.
65
Medicare eligibility
Enroll during your seven-month initial enrollment period.
67
Full retirement age for people born in 1960 or later
Claim full Social Security retirement benefits.
70
Latest age to delay Social Security
Claim before delayed credits stop.
73
RMDs begin for many retirees
Take required withdrawals if applicable.
75
Future RMD age for younger retirees
This applies beginning in 2033.
Under 50: Save and Max Out
Saving consistently for retirement early in your career gives compound growth more time to work and can help you avoid scrambling to catch up later in life.
Younger investors also typically have a higher risk tolerance, allowing them to invest more aggressively and potentially earn stronger long-term returns.
“This is your prime time for aggressive savings,” says Taylor Kovar, founder and CEO of 11 Financial in Lufkin, Texas. “The power of compound interest is on your side, so maximize contributions to set a strong foundation for your retirement.”
For those 49 and younger, the maximum contribution to a 401(k) is $24,500 in 2026. For a traditional or Roth individual retirement account, the maximum is $7,500.
[Read: What Is the Average Retirement Savings Balance by Age?]
Age 50: Catch-Up Contributions Begin
Starting at age 50, you can ramp up your retirement savings with catch-up contributions. In 2026, workers 50 or older can contribute up to $32,500 to most 401(k), 403(b), governmental 457 plans and the federal Thrift Savings Plan. That includes the $24,500 standard limit plus an $8,000 catch-up contribution.
IRA savers age 50 or older can contribute $8,600, including the $7,500 standard limit plus a $1,100 catch-up contribution.
Age 55: Rule of 55
Here’s a retirement-savings quirk of which many investors are unaware: If you leave a job when you’re 55 or older, you’re eligible for penalty-free withdrawals from the employer-sponsored retirement plan at your most recent job. This is called the rule of 55.
However, it’s usually better to roll your 401(k) into an IRA, which typically offers broader diversification, says Paul Doak, a certified financial planner at I.D. Financial in Bothell, Washington.
As tempting as it may be to start tapping into those newly available resources, “It is not advised in most cases to start taking retirement income unless there are health issues that come into play,” Doak says.
59 1/2: Penalty-Free Withdrawals
At age 59 1/2, retirement savers can begin making penalty-free withdrawals from their retirement accounts, including 401(k)s and IRAs.
While the withdrawals are penalty-free, they may still be subject to income taxes. The tax treatment depends on whether the funds were contributed on a pretax or after-tax basis. Those with traditional 401(k)s or IRAs will generally owe income tax on withdrawals, while Roth account withdrawals are tax-free.
You are not required to begin making withdrawals at age 59 1/2. For 401(k) accounts and traditional IRAs, the required withdrawal age is 73. For Roth IRAs, there is no age requirement to begin withdrawals.
[See: 12 Ways to Avoid the IRA Early Withdrawal Penalty.]
Ages 60 to 63: “Super-Catch Up” Opportunity
Under the SECURE 2.0 Act, workers ages 60 through 63 may qualify for “super catch-up” contributions in workplace retirement plans. In 2026, the enhanced catch-up limit for most 401(k), 403(b) and governmental 457 plans, and the federal Thrift Savings Plan, is $11,250, raising the total possible employee contribution to $35,750 if the plan permits it.
Age 62: Earliest Age to Claim Social Security
Taking Social Security benefits at age 62, the earliest possible age for claiming, comes with several disadvantages. First, your monthly benefit amount will be permanently reduced compared to what you’d receive by waiting until your full retirement age, which is 67 for those born in 1960 or later.
If you take Social Security before that age, the benefit reduction results in significantly lower monthly income throughout retirement. That could become a big problem if you require more income in your later years.
Additionally, if you continue to work while claiming benefits at 62 and earn above a certain limit, your Social Security payments may be reduced. Delaying benefits can provide a more comfortable retirement income stream.
Many people need the money at age 62, as they have limited options for income. Health issues may also make 62 the best age for claiming Social Security. However, people should crunch the numbers and take longevity into account before making a decision.
David Berns, financial advisor at HD Money Inc. in Sarasota, Florida, minces no words when it comes to claiming at 62. “It’s a horrible idea unless you have no other option,” he says. “You are taking the lowest amount available to you. Waiting until the full retirement age of 66 or 67 is ideal, especially with people living longer than ever.”
Age 65: Medicare Eligibility
Medicare is a complex program with various parts and options, each covering different aspects of healthcare. Understanding which plans are suitable for your needs, including prescription drug coverage, can be overwhelming. That’s why it requires careful research or help from a professional, such as a financial advisor or Medicare specialist.
You’re required to enroll in Medicare during a seven-month window that begins three months before the month you turn 65. It includes the month of your 65th birthday and the three months following.
If you fail to enroll during that window, you’ll incur a penalty. Coverage begins the month after you enroll. In 2026, the standard Part B premium is $202.90, and the Part B late enrollment penalty is generally 10% for each full 12-month period you delayed enrollment without qualifying for a special enrollment period.
Age 67: Full Retirement Age
For those born in 1960 or later, the age to claim full Social Security benefits is 67.
That could change, but it’s unlikely for anyone who’s even remotely close to retirement. The last increase was enacted in 1983, when Congress gradually raised the full retirement age as part of a long-term reform. At the time, the youngest people affected were in their early 20s.
Age 70: Maximum Social Security Boost
The longest you can wait to claim Social Security is age 70. And if you’re financially able, that’s usually a good idea.
Delaying claiming Social Security benefits until your full retirement age offers some big advantages. First, it entitles you to your full, unreduced benefit amount, maximizing your monthly income throughout retirement. That becomes more important over a long life span.
Second, your Social Security benefits can be taxable if your income exceeds certain thresholds. Delaying your benefit can help you manage your overall tax liability by coordinating the timing of withdrawals from other retirement accounts. It may sound arcane, but this can make a big difference to a retiree’s income.
Finally, if you continue to work and claim benefits early, your income could impact your benefit amount due to the Social Security earnings test. Waiting until your full retirement age avoids this potential reduction.
Age 73: Required Minimum Distributions Begin
The SECURE 2.0 Act changed the required minimum distribution age to 73. That means individuals must begin taking withdrawals from traditional IRAs, 401(k)s and similar accounts at age 73. The RMD is set to increase to 75 years old in 2033.
These changes incorporate longer life expectancies and account for those who began saving later in life and need more time for account values to grow.
The deadline for taking your RMD is Dec. 31, but for your first RMD, you get a one-time chance to delay the distribution until April 1 of the year after your 73rd birthday. So if you turned 73 in July 2026, the IRS won’t ding you if you wait until April 1, 2027, to take the distribution.
If you’re still working when you turn 73, you may be able to delay taking distributions from your employer’s 401(k) plan.
You’re not required to make withdrawals from a Roth IRA, as those contributions were made after Uncle Sam took his cut.
More from U.S. News
How to Undo Claiming Social Security Early
The Financial Perks of Growing Older
2026 Guide: How to Maximize Social Security With Spousal Benefits
10 Important Ages for Retirement Planning originally appeared on usnews.com
Update 06/01/26: This story was published at an earlier date and has been updated with new information.
