Clanton Senior Solutions

Key Retirement Ages and Decisions

When should I retire?

Should I start receiving my Social Security
income as soon as possible (age 62)?

When should I sign up for Medicare?

When should I buy long-term care insurance?

< 58

It’s never too early to start planning for retirement. The earlier you start planning, the more prepared you will be.

58-60
Ideal ages to initiate with a financial planning professional, if you haven’t already.
59 and six months

When you can begin withdrawing from your traditional IRA or retirement saving plan account without the 10% early withdrawal penalty and from your Roth IRA without penalties.

< 58-64

When to consider buying long-term care Insurance (LTCI). Because rates are largely based on your individual health, which tends to decline as you age, the earlier you start paying premiums, the lower your rates will be.

62

When everyone can start taking Social Security – but at a reduced amount.

64 and six months

The earliest you can sign up for Medicare Supplement to cover what Medicare doesn’t pay.

You can enroll in a Medicare Supplement plan up to six month before your 65th birthday . You cannot, however enroll in Original Medicare, Medicare Advantage (Part C) or a Part D Prescription Drug plan until three month before your 65th birthday.

Possibly an ideal time to buy a long-term care insurance (LTCI) policy, because:

a. When you sign up for Medicare and a supplemental health insurance policy, you may pay lower premiums and could put that savings toward LTCI premiums

b. Now that you’re past 59 ½, you can pull money from your IRA, Roth IRA or retirement saving plan without penalties - and you could use those withdrawals to purchase an LTCI policy.

64 and nine months to 65 and three months

You are eligible for Original Medicare (Part A hospital insurance and Part B medical insurance) at age 65, but you can sign up for it as early as three months before your 65th birthday and as late as three months after the month you turn 65. This seven- month time period is called your Initial Enrollment Period.

If you don’t sign up within this time period or within eight months of leaving a job with group health coverage, you may pay late-enrollment penalties for Medicare Part B (medical insurance) and Part D (prescription drug coverage)

65-67

Full Retirement Age (FRA) depends on when you were born.

70

You can start receiving your Social Security benefit as late as age 70, but delayed retirement credits are no longer applied once you reach 70

72

When you must start taking required minimum distributions from your traditional IRA and 401(k) or 403(b) plan or face hefty penalties.

84 and four months

Average life expectancy for a man reaching 65 today.

86 and seven months

Average life expectancy for a woman reaching 65 today.