In retirement, birthdays mean more than just cake and candles—they can signal big financial turning points. Certain ages unlock new benefits, create planning opportunities, or introduce new obligations. Knowing what to expect can help you stay ahead and make more informed decisions.

Below are four key retirement birthdays to have on your radar—plus the strategic moves that can make a meaningful difference.

Age 59½: Access Retirement Funds Without Penalties

Once you turn 59½, you’re no longer subject to the IRS’s 10% early withdrawal penalty on distributions from tax-deferred retirement accounts like traditional IRAs and 401(k)s.

You’ll still owe regular income tax on those withdrawals, but this age brings more flexibility for funding your lifestyle or covering unexpected costs. Many retirees use this window to start drawing down assets before Social Security begins or to bridge the gap to Medicare.

Planning Tip: Be mindful of how withdrawals affect your tax bracket—spikes in income can lead to higher taxes or even impact healthcare premiums.

Age 62: Social Security Becomes Available

This is the earliest age you can start collecting Social Security benefits—but with a caveat. Claiming at 62 will permanently reduce your monthly benefit compared to waiting until full retirement age (typically between 66 and 67, depending on birth year).

The decision to claim early or wait is personal. Health, life expectancy, income needs, and whether you plan to continue working all play a role.

Planning Tip: If you don’t need the income immediately, delaying benefits could provide you with a larger monthly payment for life—especially impactful for those with a longer expected retirement horizon.

Age 65: Time to Enroll in Medicare

Turning 65 kicks off your Initial Enrollment Period for Medicare—an essential moment in your retirement health plan. This seven-month window spans from three months before your 65th birthday to three months after.

Missing your enrollment window can result in permanent late penalties, so it’s important to plan ahead. Even if you’re still working and have employer coverage, it’s smart to understand how Medicare coordinates with your existing benefits.

Planning Tip: Start researching your Medicare options early, especially if you take regular prescriptions or expect higher medical needs.

Age 73: RMDs Begin

Beginning at age 73 (or 75 if you turn 74 after January 1, 2033, per the SECURE 2.0 Act), you must start taking Required Minimum Distributions (RMDs) from most tax-deferred retirement accounts. These withdrawals are mandatory and taxed as ordinary income.

Failing to withdraw the full amount can lead to steep penalties—up to 25% of the shortfall. But RMDs can also be managed in ways that help reduce their tax impact.

Planning Tip: In the years before RMDs begin, consider tax-efficient strategies like partial Roth conversions to lower the size of future distributions.

In Summary

Each of these birthdays represents more than just a milestone—they’re a chance to adjust your strategy and make smarter financial decisions. Whether it’s avoiding penalties, timing benefits, or managing taxes, your awareness at these ages can directly impact your long-term financial picture.

Working with a financial advisor can help you anticipate each transition and ensure your strategy reflects your goals, health, and lifestyle.

Let’s make each chapter of retirement count. Schedule a time to talk with our team—we’re here to help you make the most of every milestone.