Financial awareness is important at any age, but the years between 50 and 75 are particularly crucial for setting yourself up for a stable retirement. Knowing what steps to take at different stages can help maximize your savings, reduce tax burdens and ensure financial security. Here’s what to focus on in each decade.

IN YOUR 50s

Age 50 - You’re eligible for catch-up contributions for retirement accounts: $1,000 for an IRA, $3,500 for a SIMPLE IRA and $7,500 for a 401(k). Consider converting traditional IRAs to Roth IRAs, as the latter offers tax-free withdrawals in retirement.

Age 55 - If you are separating from the military (leaving active duty), you may withdraw from a qualified retirement plan without incurring a 10% early withdrawal penalty.

Age 59½ - Though you hopefully won’t need to, you can withdraw from 401(k)s and IRAs without a 10% penalty. 

IN YOUR 60s

Age 60 - If your spouse died, you are eligible to receive Social Security survivor benefits, but at a lesser amount.

Age 60-63 - Beginning in 2025, the catch-up contribution limit for 401(k) participants in this age bracket will be $11,250.

Age 62 - This is the earliest age you can receive Social Security retirement benefits. You can file for benefits up to four months before you want your payments to start. Social Security is 85% taxed. The earlier you opt in, however, the lower your monthly amount will be (and the amount is locked in). 

Although it makes sense for some people to take Social Security payouts early, that’s not the case for everyone, thus underscoring the importance of a professional review of your financial situation.

For divorced individuals, spousal benefits are available when the ex-spouse turns 62 if other criteria are met, such as the marriage lasting a minimum of 10 years.

Age 63 - This is when the income reported on your tax return is used to determine your Medicare part B and D premiums (known as the two-year lookback). Despite what some may think, Medicare is not free. The more you make, the higher your premiums will be.

Age 65 - You qualify for Medicare. Also, taxpayers receive an increase in the standard deduction ($1,950 for those filing a single tax return and $1,550 per spouse for married couples filing jointly).

Age 66-67 - This is full retirement age for those born in 1960 or later. Waiting to take Social Security until your full retirement age increases your benefits. 

IN YOUR 70s

Age 70 - If you haven’t taken Social Security benefits before, now is the time to do so. Delaying until now gives you the highest payment (though this depends on your life expectancy and financial needs).

This is also the latest age you can benefit from delayed retirement credits (DRCs) that increase the amount of your Social Security benefit for each month you delay taking benefits past your full retirement age. (This does not apply to spousal or survivor benefits.)

Age 70½ - You are eligible to use the qualified charitable distribution (QCD). Charitable contributions can come directly from a traditional IRA on amounts up to $105,000. You aren’t required to pay taxes when funds go directly to a charity.

Age 73 - Required minimum distributions (RMDs) from retirement accounts like 401(k)s and traditional IRAs begin (exceptions apply if you’re still working, participating in the plan and meeting certain criteria).

Age 75 - This is the age RMDs begin for those born in 1960 or later. It’s best to avoid taking RMDs when possible. The timeframe for when you want to use those dollars determines the amount of risk. To help limit the risk of losing money in the stock market, it’s prudent to maintain a safety net of one to three years of income. That way you can keep your money invested and have enough to live on while you wait out any turbulence in the stock market.

Guaranteed income streams, such as military pensions and Social Security, provide you with the most financial comfort in the retirement years. 

People often wonder whether Social Security will still be around and paying when they need it. The SSA announced a 2.5% raise in benefit checks beginning in January 2025—an average increase of $50 monthly. 

The two biggest expenses in retirement are usually health care and taxes. Putting your money in a Roth IRA, Roth 401(k), cash value life insurance or municipal bonds means it will never be taxed again at any age and stage of life. 

Curious what your Social Security benefit might be?

AARP offers this handy tool: aarp.org/retirement/social-security/benefits-calculator

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