Actions Speak Louder Than Words
This article presents specific things to do and when to do them to prepare for retirement. Since everyone’s situation is unique, treat this as a general starting point and adjust for your own circumstances, income, family situation, and goals.
The actions below are organized by age and labeled as Must Do (mandatory, often with legal or financial consequences for inaction), Need To Do (strongly recommended), Should Do (important considerations), and Consider (worth exploring based on your situation).
The concepts in this article are discussed in greater detail throughout the Articles & Knowledge Base. Links throughout this article connect to those deeper resources.
Building Phase: Your 40s
Retirement may feel distant, but the 40s are when the most important decisions are made. Compounding works powerfully over 20–25 years — what you do now matters enormously.
- Contribute at least enough to your 401(k) to capture your employer’s full match — this is free money
- Build and maintain an emergency fund of 3–6 months of expenses in liquid savings
- Carry appropriate life insurance — especially if you have dependents who rely on your income
- Review and update your beneficiary designations on all accounts and policies
- Create or update your estate planning documents: will, power of attorney, healthcare directive
- Eliminate high-interest consumer debt — credit cards and personal loans undermine retirement savings significantly
- Review all insurance coverage: life, health, disability, home, and auto
- Evaluate whether a LIRP or IUL makes sense — started early, these build significant tax-free income by retirement
- Begin learning about Social Security strategy — the decisions you make later will be based on your earnings record being built now
- Consider a whole life / Infinite Banking policy if you regularly borrow money for major purchases
Approaching Phase: Your 50s
Retirement is now 10–15 years away for most people in this decade. Catch-up contributions become available, and the window to make meaningful course corrections is still open — but narrowing.
- Take advantage of IRA and 401(k) catch-up contributions now available — $1,000 extra per year for IRAs; check 401(k) catch-up limits for your plan
- Begin a formal retirement income gap analysis — project your expected income and compare it to what you will need. See Managing the Gap
- Review your investment risk allocation — begin shifting gradually toward lower-risk products as retirement approaches
- Create a Social Security timing strategy — use ssa.gov to review your earnings record and estimate your benefits at 62, 67, and 70
- Review all beneficiary designations and estate documents — life changes (divorce, death, new children) may require updates
- Begin Medicaid long-term care planning — the 5-year lookback means planning must begin well before you need care. See Spend Down
- Evaluate your mortgage payoff timeline relative to retirement — carrying a mortgage into retirement adds significant fixed cost pressure
- Consult a licensed fiduciary to review your complete retirement picture — this decade is when preparation becomes urgency
Age 59½ — The Rollover Window Opens
At age 59½, the 10% IRS early withdrawal penalty on tax-deferred retirement accounts is removed. This is an important milestone for withdrawal flexibility — but more importantly, it opens a rollover opportunity.
- Rolling your 401(k) into a higher-performing product — even if you are still actively employed and contributing. The IRS allows this, and it is a significant perk worth evaluating. See 401(k) article for the yield comparison rationale
- Roth conversion strategy — converting portions of your traditional IRA or 401(k) to Roth now, before RMDs begin, can significantly reduce future tax liability
Age 62 — Early Social Security Eligibility
For most people, there is no required action at 62. This is primarily a good time to review your situation and verify that no major life events have altered your plan.
- Review your complete financial picture — income sources, account balances, expenses, and Social Security earnings record
- Verify all beneficiary designations are current
- Evaluate whether claiming Social Security now makes sense for your specific situation — use the lifetime benefit tables in the Social Security article as a starting point
- If you have pension benefits, review all rollover and distribution options available to you
Age 65 — Medicare Enrollment
Age 65 is one of the most action-required milestones in the retirement timeline. Medicare enrollment is time-sensitive and missing the window creates permanent penalties.
- Enroll in Medicare Part A — sign up even if you still have existing insurance coverage. Part A (hospital) is generally premium-free and there is no reason to delay
- Enroll in Medicare Part B — if you do not have employer-sponsored insurance that qualifies as creditable coverage. Failure to enroll when eligible results in a permanent 10% premium penalty for each year you delay
- Enroll in Medicare Part D (prescription drug coverage) — if you do not have creditable prescription coverage. Late enrollment penalties also apply here
- Gather all investment and account information — balances, ownership, beneficiaries, and contact information for all financial accounts
- Evaluate Medicare supplement (Medigap) or Medicare Advantage plans to cover what original Medicare does not
- Consider claiming Social Security if you need the income and meet the conditions: you have paid into Social Security and were born before 1960 (FRA is 67 for those born 1960 or later)
- If you have pension benefits, begin evaluating distribution options and rollover alternatives with a licensed advisor
Age 67 — Full Retirement Age
Full Social Security benefits are now available to those born in 1960 or later. You should have already enrolled in Medicare during the age-65 window. This is also a natural time to confirm your retirement income strategy is working as planned.
- Claim Social Security now if you need the income or if health concerns suggest a shorter life expectancy — FRA provides 100% of your calculated benefit
- Review your withdrawal strategy from accounts — are you drawing in the optimal order? See Spend Down
- Revisit your retirement action plan and confirm all milestones have been addressed
- Delaying Social Security until 70 if you do not need the income now — each additional year adds approximately 8% to your monthly benefit permanently
Age 70 — Maximum Social Security Benefits
If you have not already started Social Security, age 70 is the time. No additional delayed retirement credits accrue after 70 — there is no financial benefit to waiting longer.
- Begin Social Security benefits if not already receiving them — you have received the maximum possible benefit from delayed claiming
- Review your overall income picture now that Social Security is flowing — adjust account withdrawals as needed to stay in the most favorable tax bracket
- Revisit estate planning documents — powers of attorney, healthcare directives, and wills should be reviewed every few years or after major life events
Age 73–75 — Required Minimum Distributions Begin
Required Minimum Distributions must now be taken from traditional IRAs, 401(k)s, SEP IRAs, SIMPLE IRAs, and other tax-deferred accounts. The starting age is 73 for those born 1951–1959, and 75 for those born 1960 or later.
- Calculate and take your Required Minimum Distribution from all applicable accounts by the deadline — December 31 each year (April 1 for your very first RMD)
- Ensure your financial institution or advisor is calculating your RMD correctly — errors happen and the 25% penalty for shortfalls is severe
- Evaluate Qualified Charitable Distributions (QCDs) if you are charitably inclined — donating up to $105,000 directly from your IRA satisfies your RMD while excluding the amount from taxable income
- Review whether RMDs are pushing you into a higher tax bracket or increasing Medicare premiums — adjust your overall withdrawal strategy accordingly
Start wherever you are. It is never too early to plan and almost never too late to improve your position. The actions most meaningful to you depend on where you are in this timeline. A licensed fiduciary can review your specific situation, identify the highest-priority actions for your age and circumstances, and help you execute them — at no cost to you. Contact us for a free, no-obligation consultation.