The Basics of Insurance APIs
The term “milestone” is certainly appropriate when thinking about retirement. After all, saving and preparing ourselves for retirement is undoubtedly a marathon, not a sprint.
Whether you are just beginning your retirement planning journey, or are making the necessary adjustments along the way, there are several age-specific milestones to be aware of. Doing so will help ensure your golden years will be as bright as possible.
Crucial Retirement Milestones
Any age: Before any retirement savings begin, it is important to have an emergency fund established regardless of your age. Most financial experts agree having a 3 to 6 months of expenses saved should be your minimum goal. And the funds should only be kept in a safe and 100% liquid place such as a checking, savings, or money market account.
Before age 49 – According to Einstein, compounding interest is the 8th wonder of the world. Time-saving early in life will your nest egg grow faster than if trying to catch up later in life. Take advantage of any company matches in your 401(k) and maximize your contributions.
Age 50 – If your retirement savings is lagging behind, beginning at age 50 you are allowed to make “catch-up” contributions to your 401(k) and IRA. For 2021, you may make an additional $6,000 401(k) and $1,000 IRA deposit.
Age 55 – There is a small window between the age of 55 and 59½ where if you leave your job where you have your 401(k), you may begin taking withdrawals without a 10% penalty. Income tax will apply, however.
Age 59½ – The withdrawal penalty on IRAs ceases at this age. But be sure to plan on paying income taxes on the amount taken out.
Age 62 – This is when monthly social security payments become available. It is important to note, however, any payments taken before your full retirement eligibility age will be significantly reduced by up to 30%.
Age 65 – Medicare eligibility begins at the age of 65. For most individuals, sign up for Medicare Part A and B is automatic. But, if you are not receiving social security benefits at least 4 months before turning 65, signing up will be necessary.
Age 66 – If you were born between 1943 and 1965, congratulations! You now qualify for full social security benefits. When planning for retirement in your younger years, keep in mind social security will only replace about 40% of your pre-retirement income.
Age 66½ – If you weren’t lucky enough to be born during the golden age of musical theater, but were born between 955 – 1959, you will reach full retirement benefit eligibility six months later.
Age 67 – Those born between 1960 and after will reach full retirement age at 67. Just a mere six or twelve months later than older generations.
Age 70 – Waiting until age 70 to take your full retirement from social security will increase your monthly payment. The increase is 2/3rd of 1% of primary amount for every month you wait to take payment up to this age.
Age 70½ – The IRS eventually will want to get their take of all the tax-free savings you’ve enjoyed over the years. Beginning April 1 after you turn 70½, the IRS will calculate the minimum distribution you must withdraw to avoid their steep 50% penalty.
Featured Blogs
- Exploring the Benefits of Whole Life Insurance Beyond Basic Coverage
- The Critical Role of Life Insurance in a Comprehensive Personal Finance Strategy
- A Layman's Guide to Choosing the Right Health Insurance Plan
- Flu Season Survival Guide
- Prioritizing Preventive Care in Your Wellness Journey
- Brown and White Eggs: What’s the Difference?
- DIY Disaster Preparedness Kit: Make your own disaster preparedness kit with these essentials to keep your property and family safe
- Why Supplemental Health Insurance Might Be Worth Considering
- The Benefits of Bundling: How Combining Policies Can Save You Money
- Health Savings Account: Is It Worth It Having it?
- The Impact of New Technology on Insurance
- Healthy Living on a Budget: How Insurance Can Help You Save on Wellness Expenses
- Protecting Your Investments: The Role of Insurance in Wealth Management
- Understanding Co-Pays vs. Coinsurance: Making Sense of Your Health Insurance Costs
- Insurance Myth Busters: Debunking Common Misconceptions about Coverage
- Understanding Your Health Insurance Deductible: Tips for Making the Most of Your Coverage
- The Evolution of Insurance: Trends and Innovations Shaping the Industry
- Healthy Habits for the Summer: Tips for Utilizing Your Health Insurance Benefits
- The Future of Work
- Emergency Preparedness: How Insurance Can Provide Peace of Mind During Crises
- Managing Chronic Conditions: How Health Insurance Can Help You Stay Healthy All Year Round
- Navigating Insurance Renewals: Tips for Reviewing Your Policies
- The Importance of Preventive Care Coverage: How Your Health Insurance can Save You Money in the Long Run
- Easy & Creative Ideas to Refresh Your Home for Summer
- Health Insurance 101: A Guide for Recent Graduates
- How Milestones Can Affect Your Coverage Needs
- How to Fall Back Asleep After Waking in the Middle of the Night
- Embrace Strong Bones: Tips for Lifelong Health
- How to Improve the Air Quality in Your Home
- How to Avoid Muscle Loss as You Age
- The Rise of Urban Gardening
- Art of Mindful Eating: Transform Your Meals, Transform Your Life
- Fueling Your Mind with Brain-Boosting Foods
- 5 Simple Ways to Boost Your Immune System (and 1 unusual way)
- Embracing Our Roles: Renewing Our Commitment to Sustainable Living
- Tips for a Stress-Free Tax Season Experience
- Spring fitness ideas
- Inspirational women who make the world a better place
- Creating a Positive Start to Your Day
- Spring Forward: Adjusting Your Routine for Daylight Saving Time
- Gratitude - Key to a Positive Mindset
- Adopting a Holistic Wellness Approach to a Healthier You
- 3 Common Sense Things People Should Know
- Exploring Superfoods: Nutrient-Packed Ingredients for a Healthy Diet
- Unraveling the Mystery of the Extra Day
- Digital Detox: A Healthy You in a Hyperconnected World
- Financial Fitness in 2024: Budgeting and Saving Tips
- Three Joyful Habits for a Healthier You in 2024
- New Year's Resolutions: Staying Committed Year Round
- The Magic of Christmas Traditions
- Staying Healthy During the Winter Months!
- How to be a Time Management Whiz During this Busy Season
- Self-care tips for December
- Mastering the Mind: Techniques for Better Memory and Cognitive Function
- The Art of Productive Procrastination: How to Make the Most of Downtime
- Eating for Energy: Foods that Boost Your Stamina and Productivity
- How to enjoy and celebrate chilly, gloomy days
- Thriving in Your Golden Years: Strategies for Aging Gracefully and Vibrantly
- Best Dog Breeds that Suit Your Needs
- Reduce Stress: Develop Patience
- DIY Delights: Creative Projects for Seniors
- Coping with Seasonal Affective Disorder (SAD)
- Long-term Health Benefits of Physical Activity
- How to Trim Down Hidden Costs of Flying
- Best foods for hydration
- How to Experience Positive Aging (8 Tips)
- How to Improve Your Health: The 5 Main Aspects of Wellness
- How much should you actually have in savings?
- Are you underinsured for your circumstances?
- How to Build Sustainable Wealth
- How to Maintain Our Body
- Enhancing Resilience as We Age
- The Body After 60: Overcoming Barriers to Exercise
- The best herbs to grow for beginners
- Foods you had no idea you could freeze
- Is celebrating your 100th birthday no longer a dream?
- Medicare and Medicaid: Dual eligibility
- Summer Workouts for Your Dose of Vitamin D
- What’s Keeping You from Losing Weight?
- Music and Your Wellbeing
- Your NEW Social Security Statement
- Understanding When to Enroll in Medicare
- How to Dispose of Unused Medications
- Smart Home Systems: Promoting a Comfortable Environment for Seniors
- Aging and Our Body’s Ability to Heal Itself
- Keeping Health Insurance After a Layoff
- Waking Up to the Impact of Insomnia
- How Life Insurance Benefits Women
- What experts say about raising the retirement age
- Coverage for healthcare treatment denied? Here's what you can do.
- Giving and Forgiving
- Why Buy Life Insurance on Children
- Things We Are Grateful for This Year
- What to Avoid When Switching to Medicare from the Public Health Exchange
- How to Host a Successful Virtual Holiday Party
- Is One of These Factors Keeping You from Seeking Life Insurance?
- Ben Franklin: Father of Modern Insurance
- Who Invented Insurance Anyway?
- Common Senior Micronutrient Deficiencies
- The Art of Aging Well
- Insure What? Celebrity Body Parts Insured
- Using HSAs In Your Retirement Planning
- 6 Strange Insurance Policies You Can Buy
- How Valuable Is Cash Value Life Insurance?
- Mistakes You can Make When Exercising at Home
- Why You Should Never Lie to the Underwriter
- Forget Salad Recipes, Try a Salad “Matrix”
- Will My Life Insurance Policy Cover Me If Something Happens While Traveling?
- I’ve Been Denied a Life Insurance Policy. Now What?
- Bucket List Ideas and Why It’s Important
- Getting Fit Before the Medical Exam
- The Basics of Insurance APIs
- 8 Gas Savings Tips During Summer
- How to Stay Hydrated During the Summer Season
- Safety Tips for Outdoor Barbecues
- What You Don’t Know About Senior Fitness
- The Last Guide to Chair Yoga You’ll Ever Need
- Sleep Care is the New Self-Care
- Tips for Making Dinnertime Special
- 7 Ways to Improve the Quality of Life of Seniors You Care About
- Ways to Get the Best Health Care
- Adapt Your Home for Safe Mobility
- Why Gardening is Good for Your Health
- Best Nutrition Apps
- Reducing Stress Through Music
- How to Live Without Regrets
- Power Foods that Lift the Spirit
- Benefits of Grateful Living
- Remote Activities You Can Do with Your Grandkids