by Andrea Norris-McKnight

Most older Baby Boomers have retired, and the youngest are quickly approaching retirement age. The oldest Gen X-ers aren’t far behind.

Just as you reach specific milestones when you’re young — from becoming a teenager at 13 to driving at 16 and voting at 18 — there are certain ones to keep in mind beginning at age 50. Unlike those early milestones, these later ones can significantly impact your finances and retirement.

Read on to find out about several notable money milestones to expect during your 50s, 60s and 70s.

Age 50

You might not like the thought of turning 50, but it does come with the following few worthwhile financial perks:

Catch-Up Contributions

Once you turn 50, if eligible, you can begin socking away more in your retirement accounts with catch-up contributions.

In 2023, you can contribute an additional $7,500 to your 401(k), 403(b), governmental 457 (b) or a Salary Reduction Simplified Employee Pension Plan (SARSEP).

Catch-up contributions to a traditional or Roth IRA are capped at $1,000.

Simple IRA and Simple 401(k) plan holders may also be eligible for catch-up contributions of up to $3,500.

Senior Discounts

Many retailers and service providers offer senior discounts to those over 50, although some require you to be at least 55. These discounts can provide a significant source of savings, so you should always inquire whether one is available. Most places or providers won’t ask if you’re “of age.” Always ask about any discounts from retailers and service providers.

Related: Senior Discounts You Might Not Know About

AARP

While you might not qualify for many senior discounts until you reach 55, or even 60, you can join American Association of Retired Persons (AARP), and take advantage of its many discounts. AARP welcomes anyone 18 and older into their membership, but many benefits are only available to those 50 and older.

You can join for only a $16 annually, or cheaper if you join for three or five years at a time. AARP’s numerous benefits, including discounts on entertainment, health, travel, financial services and much more, can quickly make the membership worth the money.

Age 59 1/2

When you started saving for retirement with an IRA or 401K, the age 59 1/2 seemed light years away. However, at this age, you can begin withdrawing money from your 401(k) or IRA, if necessary, without penalty.

You should give careful consideration before dipping into your retirement nest egg. Any distributions from a traditional 401(k) or IRA are taxable and could put you in a higher tax bracket, depending on your other income. Also, money withdrawn from any type of retirement account will no longer grow tax-deferred once you withdraw it.

Related: What Are My 401k Distribution Options When I Retire?

Age 62

The Social Security Administration (SSA) allows you to apply for Social Security benefits a few months before you turn 62. However, 62 may not be the ideal age to collect, as your benefit can be about 30% less than if you wait until your full retirement age, so you must determine the best retirement age based on your financial situation, health and other factors before collecting.

Age 66/67

Depending on when you were born, you’ll reach full retirement age at 66 or 67 and can collect your full Social Security benefit. However, you can also delay collecting even longer and increase your benefit. Each full year you delay collecting, your benefit will increase by 8% until age 70.

Age 73

If you get through your 70s without touching your retirement accounts, you’ll have to begin taking required mandatory distributions (RMDs) once you reach 73. RMDs are based on your account balance and age. You can incur penalties if you skip withdrawals or fail to take out enough, so it’s essential to understand the rules of RMDs before you reach age 73.

Not All 50+ Milestones Are Set in Stone

It’s important to note that some of these milestones may change before you reach them. Yearly catch-up contribution limits are often adjusted, and the RMD age has gradually increased over the past few years. As age expectancies increase, the timeline for collecting Social Security could change for those barely into their 50s and younger. So, stay current on any changes that could impact your retirement as you approach each milestone.

Age and Insurance

Also, remember that life and long-term care insurance become harder to get and more expensive as you age. According to the American Association for Long-Term Care Insurance, many insurers stop issuing policies at age 80, and options can become limited in your 70s, depending on your current state of health. Many life insurers stop giving policies at 75 to 80, although some issue to those well into their 90s.

Related Articles

• When To Begin Taking Social Security Distributions
• Managing Your 401k In Your 50s
• Legal Documents You Need in Your 50s

Reviewed October 2023

About the Author

Andrea Norris-McKnight took over as the editor of The Dollar Stretcher and After 50 Finances after working for the previous editor for almost 15 years. She has also written for Money.com, GOBankingRates.com, HavenLife.com and The Sacramento Bee.