Retirement timeline: Eight ages that shape retirement planning
As you approach retirement, keep these key milestones in mind when planning your future income and tax strategies.
Age 50: Catch-up contributions can begin
Set by the IRS and updated annually, your maximum annual contributions increase for both traditional 401(k)s and IRAs. Catch-up contributions allow you to save more and make up for years you possibly didn’t save.
Milestone marker: Catch-up contributions can help fund strategies designed to turn late-career dollars into predictable income for life.
Age 55: Rule of 55 kicks in
Age 59½: Qualified IRA withdrawals
Age 62: Minimum age for claiming Social Security benefits
This is the earliest you can claim Social Security benefits, however, benefits will be reduced by claiming early. Waiting until your full retirement age—or even delaying up to age 70—will result in higher monthly payments. Talk to your financial advisor or visit ssa.gov for more information on Social Security eligibility and how claiming early could affect your long-term retirement plan.
Milestone marker: The current median retirement age in the United States is 62. [U.S. News & World Report]
Age 65: Medicare eligibility begins (64 years and 8 months)
You can apply for your Medicare benefits online at medicare.gov up to three months before you turn age 65. There are many different parts to Medicare, some of them optional, and penalties can be applied if you don’t apply in time. Talk to a trusted financial advisor to make sure you understand all of your options and obligations. Consult this guide for more information about Medicare enrollment.
Milestone marker: Health care costs in retirement currently average $8,600 a year (not including long-term care. [kipplenger.com]
Age 66-67: Full retirement age
Your full retirement age is when you’re eligible to receive 100% of your Social Security benefit. For most people that’s age 67, though it varies slightly depending on your birth year. Your actual retirement date depends on a sliding scale that you can
find here.
Milestone marker: Social Security is designed to replace about 40% of pre-retirement income for the average worker at full retirement age. [ssa.gov]. Annuities can provide an additional source of guaranteed income.
Age 70: Maximium Social Security benefits
By delaying Social Security past full retirement age, you earn higher benefits each year — reaching your maximum monthly benefit at age 70. Your health and family longevity are just a couple of variables to consider when deciding when to take Social Security.
Milestone marker: Delaying Social Security from full retirement age to 70 can increase monthly benefits by up to 24%. [ssa.tools] A fixed index annuity with a guaranteed income benefit can be used to bridge the gap from retirement to age 70.
Age 73: Required Minimum Distributions (RMDs) begin
RMDs are now necessary from your tax-deferred accounts, including workplace retirement plans and IRAs. RMDs are withdrawn each year and are considered taxable income. Rules around RMDs can be complicated so consult with your financial professional and/or tax consultant to make sure you meet all the requirements.
Milestone marker: Income from a fixed index annuity within an IRA can be used to satisfy RMD requirements and help with tax strategies.
Article published: May 26, 2026
The content provided is for informational purposes only and does not constitute advice. For specific details on how this may apply to your personal situation contact your personal financial advisor or
insurance agent for more details. American Equity contracts are only sold through independent agents. Please contact your state insurance department to see if there is an independent insurance
agent in your area appointed to sell American Equity annuity contracts.
