Key Retirement Milestones for Your Clients


As your clients get closer to retirement, it’s important to keep track of key retirement milestones. These milestones will help you stay on top of your clients’ planning and ensure they aren’t putting unnecessary strain on their resources.

These milestones also show that you care about your client’s retirement life holistically. That’s an important part of your job as a financial advisor.

Age 55

The age of 55 is one of the key retirement milestones. This is the age when many retirement plans, including 401(k)s and defined and government pensions, allow withdrawals without imposing a premature tax penalty — usually 10%.

Retiring early can be an appealing option, but it can also come with a lot of financial challenges. It’s important to know how much you’ll need saved and how long it will take to save it so that you can live comfortably once you retire.

If you leave your job before you reach 59 1/2, there’s an exception called the “rule of 55.” This rule allows employees to withdraw funds from their 401(k) or 403(b) retirement accounts if they quit, are laid off or otherwise terminated from their employment during or after the year they turn 55.

Age 60

As we grow older, milestones are a way of celebrating the hard work and accomplishments that we’ve made throughout our lives. As you approach retirement, key retirement milestones are also an important part of planning for the next chapter.

Age 60 marks a major milestone on your path to retirement. At this age, you can begin claiming Social Security benefits and become eligible for Medicare.

Your financial advisor can help you understand your options and how these milestones can impact your savings and income.

The number of people over the age of 60 is growing fast around the world. It is the result of dramatic advances in medical care and public health, as well as a decline in fertility rates. By 2050, the proportion of the world’s population over 65 will nearly double from 12% to 22%.

Age 65

The age of 65 is the key retirement milestone most people work toward. It’s the time when Social Security contributions begin to be distributed, Medicare health care coverage begins and many private pension plans start paying benefits.

This is also the age at which you can withdraw funds from your IRA or qualified savings without incurring a premature penalty. This is a great opportunity to ramp up your retirement assets.

At age 65, you can sign up for Medicare and receive Part A (hospital insurance) and Part B (doctor’s visits and medical supplies). The initial enrollment period starts three months before your 65th birthday and ends three months after.

Age 70

When you reach age 70, it may feel like all the hard work is behind you. But you still have some important milestones to hit as you get closer to retirement and need to factor them into your plan.

Taking the right actions at each key milestone can help you maximize your savings and create the income you need to enjoy retirement. Working with a financial professional can also help you stay on track as you approach these important dates.

Age 80

The age of 80 is the next key milestone in retirement. It’s the point where many people begin to really get serious about saving and planning for retirement.

As we get older, our lives change in ways that can be both good and bad. Aging brings its own set of challenges, but it also can bring many things we cherish, such as time with family or fewer worries.

The number of people aged 65 or over is growing globally, according to World Population Prospects. By 2050, one in six people worldwide will be older than 65.