The wise man saves for the future, but the foolish man spends whatever he gets. Proverbs 21:20 (The Living Bible)
Money and possessions are a tool, and when used appropriately they bring honor to God and joy to us. God calls us to seek His kingdom first and He will supply our needs. Our desires will be in accordance with God’s best for us when we strive to live according to His Word. Being a good steward of what God has blessed you with involves planning for your daily needs and preparing for the future. Birthday milestones can help you prepare for your retirement future. Make sure you know whether you can retire by years of service, age or a combination of the two.
(adapted from PNC Investments)
Age 50
Begin making catch-up contributions to your qualified employer-sponsored retirement plan or an individual retirement account. Evaluate your current spending, savings debt-reduction and investment strategies. What do you need to increase, change or add.
***Very Important-If you haven’t already done so, start adding activities to your life that you can continue throughout your retirement. These activities may change over the years, yet you need to be intentional about meaningful, fulfilling ways to spend your time during retirement.
Age 55
Pause and analyze your financial accomplishments and goals. How much longer do you want or need to work? Ask yourself how you want to live when you are retired. What debt will you still have and what will you pay off. If you have retired early, you may be able to access money from a 401(k) plan, without paying penalties.
Age 59 ½
You should be able to withdraw money from a 401(k) or traditional IRA without penalties.
Age 60
Are you ready to retire? Is your financial house in order? How will you spend your time in retirement-traveling, volunteering, part-time job, babysitting, starting a business.
Will –
Age 62
You can choose to start claiming Social Security. Right now, your benefits will increase about 8% for every year you delay.
Age 65
Happy Medicare Day!!! You can sign up 3 months before your 65th birthday.
Age 66/67
This marks full retirement from a Social Security perspective. Should you retire now or will it benefit you to work a little longer. Hmmm…
Age 70
At this age, you should apply for your Social Security benefits. You can receive benefits even if you still work. Waiting beyond age 70 will not increase your benefits.
Age 73
In 2023 the required minimum distribution age from your IRA or employer-sponsored retirement plans has moved to 73. Americans who fail to begin withdrawing their required minimum distribution at the required age or who do not take out the required amount are subject to a steep tax penalty. RMDs affect all employer-sponsored retirement plans, making them a critical part of retirement planning for millions of Americans. 401(k) plans, 403(b) plans and 457(b) plans are all affected. According to the IRS, plans such as IRAs and SIMPLE IRAs abide by RMD rules as well. The one exception is a ROTH IRA, which still is affected by RMDs but not until the owner has died and it is inherited by a beneficiary.
***When you are approaching age 73, make sure you know the mandatory dates for your first and second distributions.