9 Important Ages to Discuss with Your Portland Retirement Advisor


Retirement planning doesn’t happen in a single moment. Whether you invest in a retirement savings plan or will receive a pension through your employer, expect Social Security or separate financial investments to boost your retirement income, revisiting your current financial situation is necessary to make predictions and ensure you’re in a good financial position when you retire. Key deadlines and milestones must also be met in order for you to receive all of your benefits and avoid penalties and fees, which your retirement advisor will counsel you about.

Start Retirement Planning Early

Few people will suddenly encounter a financial windfall that would allow them to quit their jobs, so keeping your fingers crossed about the lottery won’t likely result in a happy retirement. Instead, reach out to a Portland retirement planner as early as possible to determine the steps you will need to take to make your years after leaving the workforce financially worry-free. Savvy workers take advantage of any available retirement resources and will set up automatic contributions to employer-sponsored retirement savings plans like 401(k)s and make sure they receive any matching contributions offered as soon as they are eligible.

9 Milestones to Discuss with Your Retirement Advisor

The following ages represent key points in your retirement planning where you will benefit from the wisdom of your financial advisor

  • Age 50. At this age, workers can defer taxes on larger retirement savings, up to $23,000 in annual contributions to 401(k), 403(b), or Thrift Savings plans and up to $6,500 in IRAs. That’s $5,500 more for most plans, and $1,000 more for IRAs, than younger people can contribute with deferred taxes.
  • Age 55. For early retirees, turning 55 can be wonderful because it allows you to take withdrawals from the 401(k) of the job you most recently left without incurring penalties. You will need to wait until you’re 59 and a half to avoid penalties for withdrawing money from other retirement savings accounts and any money you have rolled into an IRA, though.
  • Age 59 and a half. You now can make withdrawals from all of your traditional retirement savings plans without receiving penalties. Note: income tax will still be due for each distribution.
  • Age 62. You can sign up for Social Security benefits starting at this age, but will definitely want to talk it over first with your retirement planner. Social Security payments may be permanently reduced by as much as 30 percent for people who sign up at this age, and those who collect Social Security while they continue to work may have their payments withheld.
  • Age 65. Three months before you turn 65, you can enroll in Medicare. It’s critical you sign up on time or within eight months of leaving a job with group health, or run the risk of permanent increases to your Medicare Part B and D premiums or even denial of supplemental insurance.
  • Age 66 or 67. Depending on the year you were born, you will be eligible to collect your full Social Security benefits sometime after turning 66 (or at age 67 if you were born in 1960 or later). Once you hit your individual full retirement age, benefits for collecting Social Security and working at the same time will no longer be withheld.
  • Age 70. If you delay collecting Social Security until you are 70, you will increase your payment amounts by about 8 percent per year. After age 70, however, there is no benefit to delaying.
  • Age 70 and a half. At this age, you will no longer be eligible for tax deductions for traditional IRA contributions. Distributions from IRAs and 401(k)s are required at this point, too, with income tax due on withdrawal.

Make Use of Retirement Resources

As you can see, there are several checkpoints along your path to retirement. A savvy financial advisor can help you make the use of available retirement resources, planning tools, and tax savings to create the best possible outcome for you. Calculating the smartest times for you to collect benefits or stop working altogether ensures you have few financial worries in your retirement.