Retirement Milestones: Birthdays Over 50 Worth Celebrating

September 2, 2025

Turning 50 is more than just a number—it marks the beginning of some important opportunities and deadlines that can shape your retirement journey. As you move through your 50s, 60s, and beyond, several “birthday rules” come into play that affect savings, withdrawals, Social Security, and Medicare. Keeping track of these dates can help you make smarter financial choices and avoid costly mistakes.

Age 50: Catch-Up Contributions Begin

Once you hit 50, the IRS lets you go beyond the standard retirement plan contribution limits. This “catch-up” provision allows you to save more during your peak earning years.

●     IRAs: In 2025, the regular contribution limit is $7,000. At 50+, you can add an extra $1,000, for a total of $8,000.

●     SIMPLE IRAs: Standard contributions cap at $16,500, but older savers can tack on another $3,500.

●     401(k), 403(b), 457, and TSP accounts: The base contribution is $23,500, with an added $7,500 catch-up allowance for those 50 and over.

Age 55: The Rule of 55

If you leave your job during or after the year you turn 55, you may be able to withdraw from your employer-sponsored plan (like a 401(k)) without paying the 10% early withdrawal penalty. This rule doesn’t apply to IRAs, nor to funds rolled over into an IRA, so it’s worth planning carefully before making any moves.

Age 59½: Penalty-Free Withdrawals

Half birthdays matter in retirement planning. At age 59½, you can begin taking distributions from IRAs or old workplace retirement accounts without the early withdrawal penalty. If you’re still employed, you might only be able to access funds from former employer plans unless your current plan allows an “in-service” distribution.

Age 62: The Earliest Social Security Option

You can claim Social Security as early as 62, but there’s a catch—your benefit will be permanently reduced compared to waiting until full retirement age (FRA). If you continue to work, earnings above certain limits may temporarily reduce your benefit until you reach FRA. For 2024, the threshold is $22,320 before reductions kick in.

Age 65: Medicare Enrollment

Your 65th birthday is a major healthcare milestone. This is when you become eligible for Medicare, and timing is critical.

Your Initial Enrollment Period is seven months long—starting three months before your birthday month and ending three months after. Delaying enrollment without qualifying coverage could result in permanent penalties and coverage gaps. Most people are automatically enrolled in Part A if they’re already receiving Social Security, but Part B is optional and comes with a monthly premium.

Ages 65–67: Full Retirement Age for Social Security

Depending on your birth year, your FRA falls between 65 and 67. Claiming at this age ensures you receive your full benefit, without reductions for early filing. Delaying beyond FRA adds roughly 8% per year to your benefit until age 70. Reviewing your Social Security statements regularly can help you maximize your payout.

Age 73: Required Minimum Distributions (RMDs)

Thanks to the SECURE Act 2.0, retirees now must begin taking RMDs from tax-deferred retirement accounts at age 73 (up from the previous 72). This includes IRAs, 401(k)s, and other qualified plans. The IRS requires you to withdraw at least a minimum amount each year, based on your account balances and life expectancy. Miss an RMD, and you could face a 25% penalty on the amount you failed to take.

Why These Dates Matter

Each of these birthdays brings new rules and opportunities. By mapping your financial plan around them, you can boost your savings, avoid penalties, and make the most of your retirement income. And while these milestones may not all call for a party, they’re definitely worth marking on your calendar.

Your financial advisor can help you plan for these milestones.

Sources:

https://www.irs.gov/retirement-plans

https://www.marketwatch.com/story/9-birthdays-that-matter-most-to-your-retirement-11622210711

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.