Retirement Milestones

Age 59 ½

This is the age where you can start pulling money out of retirement plans, including 401(k)s, pensions, and IRAs. Pulling money out from any of these plans prior to that age will usually result in a hefty tax bill, including penalties.
 
Age 62

At age 62, you will have to make the choice of whether or not to take your Social Security benefits and income.  If you wait until your full retirement age or even beyond, i.e. to age 70, you get a significantly higher payout.  If you are married, your benefits need to be coordinated with the age, eligibility, and expected payout of your spouse.

Age 65,

Congratulations!  You are eligible for Medicare, which is a government-sponsored healthcare-plan.  It is important to register when you reach age 65 - even if you still are working.

Age 70 ½  The IRS allows you to defer taxes on the pre-tax income that you've saved over the years.  However, they still want you to pay sometime during your lifetime.  Thus, starting with the year you turn 70 ½, you will be required to start withdrawing money out of all of your pre-tax retirement savings.  The penalty for not doing so is steep - a 50% tax on the money that you should have taken out.

For more information on any of these topics, give me a call.