The most important ages in retirement planning (12 14 25)

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From "catch-up" contributions at 50 to RMDs at 73, nine specific birthdays trigger major financial changes, penalties, and powerful benefits in retirement planning. Are you missing anything on this checklist?

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

• The most important ages in retirement planning

• Year-end deadlines and actions for retirees

• The smart way to donate this holiday season

• Q&A: Should I collect Social Security early and invest it?

• Smart money move of the week

💵 The Most Important Ages In Retirement Planning

When it comes to retirement planning, certain birthdays trigger major financial changes — whether you’re ready for them or not. These aren’t the milestone birthdays you celebrate with friends and family. They’re the ages when federal rules kick in, when contribution limits change, and when missing a deadline can cost you thousands of dollars in penalties or permanently reduced benefits.

Most people know that 65 is associated with retirement, but the reality is far more complex. The rules governing your 401(k), IRA, Social Security, and Medicare are tied to specific ages ranging from 50 to 73. Each one opens new opportunities or creates new obligations you need to understand.

The difference between knowing these dates and stumbling into them unprepared can add up to tens of thousands of dollars over the course of your retirement.

Discover the nine most important ages for your retirement accounts and benefits, and what actions you need to take right now to secure your financial future.

📚️ Recommended Reading

✅ Poll: What’s Your Take?

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “Where do you keep most of your excess cash?” Here’s how you answered:

• Checking account (9%)

• Savings account (26%)

• CDs (20%)

• Money market accounts (29%)

• Treasury bills (3%)

• Cash management account at Vanguard or Fidelity (13%)

💬 Ask an Advisor

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Jamie in Nevada asks: If you do not anticipate needing Social Security to pay monthly expenses, what do you think about collecting it early at 62 and investing it, for example, in a target date fund 10 years out? The original plan was to wait until FRA at 70 but I'm wondering if there's any potential upside to collecting early and investing instead.

Wes Moss says: That is an interesting strategy, Jamie. Since you are not reliant on the income, the first thing to be careful about is the Social Security earnings limit. If you are under your Full Retirement Age and your wage income exceeds the limit (which is about $23,400 for 2025), you would lose one dollar in Social Security benefits for every two dollars earned above that threshold. However, the good news for your situation is that passive income and retirement withdrawals do not count against this limit. This means that pension income, rental income, dividends, capital gains, and withdrawals from retirement accounts are safe. Since your income is largely passive, you can proceed with your plan. From a purely mathematical perspective, the decision to collect early versus waiting often comes down to an 11-year break-even point. For every year you delay, your Social Security payment increases by approximately 7% to 8%. If you start collecting early and invest those smaller payments, and your investments earn 7% to 8%, you are essentially just breaking even, provided you live into your mid-to-late seventies. In that sense, it is a bit of a wash. However, here is the main reason I would consider this: If almost all of your current wealth is locked up in retirement accounts (like 401(k)s and IRAs), taking Social Security now allows you to immediately start building a tax-efficient, after-tax cushion of cash. You may need this cushion for tax or spending flexibility down the road, and taking your Social Security benefit now to save and invest that money is an excellent way to diversify your assets outside of your tax-deferred retirement accounts.

💸 Money Tip of the Week

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

This information is provided to you as a resource for informational purposes only and is not to be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Any company names shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. The views and opinions expressed are for educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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