Key retirement savings milestones
Being aware of key retirement savings milestones by age can help you prepare for the future. Here are some important milestones to keep in mind as you plan your retirement savings.
- Your retirement savings milestones begin when you reach catch-up contribution age. You can start making catch-up contributions to many retirement plans beginning the year you turn 50.
- 403(b) and 401(k) withdrawal age. You can start taking penalty-free withdrawals from qualified retirement plans such as 401(k)s, 403(b)s and profit-sharing plans if you leave your employer in the year you turned 55 or later.
- IRA withdrawal age. You can begin taking withdrawals without penalty from IRAs and qualified retirement plans.
- Beginning in 2025, additional catch-up contributions may be available for ages 60-63 in some plans.
- Early Social Security benefits age. You can start taking reduced Social Security benefits.
- Medicare sign up age. You should sign up for Medicare hospital insurance (Part A) 3 months before your 65th birthday, whether or not you want to begin receiving retirement benefits.
- Full Social Security benefits age. You can start taking full Social Security benefits depending on your birth year. Any delay in applying for Social Security benefits, up to age 70, can qualify you for increased benefits.
- Required minimum distribution (RMD) age.1 This is a key milestone age for retirement savings because you must begin taking RMDs from most retirement accounts. Your exact RMD age will depend on the year you were born: The current RMD age is 73. In 2033, the RMD age is set to increase to 75 for individuals born in 1960 or later.
Contact an Ameriprise financial advisor today to learn more about milestones for retirement savings. As well as get retirement advice by age and recommended strategies to help you stay on track.
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1On Dec. 29, 2022, new retirement legislation — known as SECURE Act 2.0 — was signed into law, increasing the RMD age from 72 to 73. The law also mandates an automatic increase in the RMD age to 75, beginning in 2033. Please note: The new legislation assigned both age 73 and age 75 as the RMD age for those individuals born in 1959. Those born in 1959 will likely have an RMD age of 73, currently this rule is proposed by the IRS to be 73 and if confirmed will be 73.
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