Turning 65 is one of the most important financial milestones in your life, triggering decisions about Medicare, Social Security, retirement income, and estate planning that can affect your finances for decades. A record number of people are turning 65, and retirement income planning has never been more important. Whether you are planning to retire or keep working, these eight steps can help anyone turning 65.
While this checklist can help you prepare for retirement, a financial advisor can help personalize each step.
1. Maximize Your Catch-Up Contributions
If you are 50 or older, you can contribute more to your retirement accounts each year, and the window to take advantage of those extra contributions closes when you stop working. Catch-up contributions allow those aged 50+ to increase their limits on certain benefit plans. On employer plans, such as 401(k)s, 403(b)s, and 457(b)s, ages 60-63 can enjoy extra catch-up contributions.
2026 Contribution Limits: Quick Guide
| Account Type | 2026 Standard Limit | Catch-Up (Age 50+) | Catch-Up (Ages 60 – 63) | Total Possible |
|---|---|---|---|---|
| 401(k), 403(b), 457(b), TSP | $24,500 | $8,400 | $11,250 | $32,500 to $32,750 |
| Traditional or Roth IRA | $7,500 | $1,100 (indexed) | n/a | $8,600 |
| HSA (self-only) | $4,400 | $1,000 (55+) | n/a | $5,400 |
| HSA (family) | $8,750 | $1,000 (55+) | n/a | $9,750 |
The SECURE 2.0 Act added bonus catch-up contributions for ages 60-63, and catch-up limits are now indexed for inflation. If you are between 60 and 63, you may be eligible for the highest catch-up contribution limits available. Check with your plan administrator to confirm your plan allows the full amount.
2. Choose Your Social Security Claiming Strategy
The age you claim Social Security can permanently affect your monthly benefit. Claiming early at 62 reduces your benefit, while waiting until 70 increases it by up to 8% per year beyond your full retirement age. Once you reach your full retirement age, you can receive 100% of the monthly benefit you are entitled to. Full retirement age depends on birth year.
| Birth Year | Full Retirement Age |
|---|---|
| 1958 | Already reached FRA |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
There are three claiming windows for Social Security: early, FRA, and delayed.
- Early Social Security claim: You can start taking Social Security at the age of 62, but you may face deductions of up to 30% of your full benefit amount.
- FRA Social Security claim: You will most likely be eligible for the full Social Security benefit amount. However, if you earn above the annual limit before FRA, you may experience a temporary withholding of benefits.
- Delayed Social Security claim: For every year you delay taking benefits, your benefits increase by up to 8% until you turn 70.
You do not need to claim Social Security when you retire; you can retire and delay claiming. However, the best time to claim Social Security will depend on your retirement income plan, life expectancy, and spousal and survivor benefit considerations.
For more information, log into your Social Security account at SSA.gov to review your earnings record and see your estimated benefit at ages 62, 67, and 70.
3. Enroll in Medicare on Time
Medicare enrollment at 65 is not automatic for everyone, and enrolling late can result in permanent premium penalties. The Initial Enrollment Period is a 7-month window where you can enroll in Medicare starting 3 months before you turn 65 and ending 3 months after.
Medicare Parts at a Glance
- Part A: Hospital insurance plans, premium-free for most people
- Part B: Medical insurance plans, monthly premium required
- Part C: Medicare Advantage, private plan alternative
- Part D: Prescription drug coverage, plan dependent
- Medigap: Supplemental coverage for out-of-pocket costs under Original Medicare
IRMAA: Income-Related Monthly Adjustment Amount
IRMAA is based on income from two years prior and can add fees to your Medicare plan. Higher earners pay more for Parts B and D due to IRMAA surcharges. When planning Roth conversions or other income events, plan with IRMAA in mind.
If you are still working with employer coverage, you may be able to delay Part B without penalty. However, if you recently left your employer, COBRA coverage does not qualify for the Special Enrollment Period. Confirm with your benefits department that your plan qualifies for a Part B delay.
4. Coordinate Your HSA with Medicare
Once you enroll in Medicare, you can no longer contribute to an HSA. However, the money already in your HSA can still be used tax-free for qualified medical expenses, including Medicare premiums.
You must stop contributing to your HSA the month your Medicare Part A coverage begins. If you delayed enrolling in Medicare, you could continue making HSA contributions.
Although you can no longer contribute to an HSA, the funds inside can (and should) be used during retirement. HSAs can cover qualified medical expenses such as:
- Medicare Part B and D premiums
- Long-term care premiums
- Out-of-pocket medical expenses
After 65, HSA withdrawals for non-medical expenses are no longer penalized, although ordinary income tax still applies. If you plan to work past 65 and delay Medicare, your HSA remains a powerful tax-advantaged savings tool. Maximizing contributions in your early 60s can build a dedicated healthcare fund for retirement.
5. Build a Retirement Budget and Identify Your Income Gap
Knowing how much you need to spend each month in retirement, and where that money will come from, is the foundation of every other financial decision on this checklist. This can be a daunting task, but a retirement budget will benefit your overall confidence and help you make smart financial decisions.
To build your retirement budget, start by:
- Categorize expenses into essentials (housing, food, healthcare, taxes, insurance) and discretionary spending (travel, hobbies, gifts).
- Be sure to account for inflation, especially in health costs.
- Tally up income sources: Social Security, pensions, annuities, part-time work, rental income, investment dividends, etc.
- Look for your “income gap,” the difference between expenses and guaranteed income, which savings must cover.
- Keep in mind withdrawal rate considerations while planning retirement income. While rules of thumb can be a starting point, they are not a substitute for a personalized plan.
6. Plan Tax-Efficient Withdrawals
The order and timing of withdrawals from your retirement accounts can significantly affect how much you pay in taxes each year and how long your savings last.
Tax diversification means having retirement savings spread out over many account types. You should have savings in pre-tax accounts (401(k)s, traditional IRAs), after-tax accounts (Roth IRAs, Roth 401(k)s), tax-free accounts (HSAs), and taxable brokerage accounts.
In general, you should draw from taxable accounts first, then tax-deferred accounts, then Roth accounts, but the best sequence depends on individual tax brackets, RMDs, IRMAA, and estate goals.
Consider Roth Conversions Before RMDs Begin
The years between retirement and age 73 (when RMDs start) may offer a window for strategic Roth conversions at lower tax rates. The 5-year rule for Roth conversions means if you withdraw converted funds within 5 years of the conversion, you will be hit with penalties. However, converting funds to Roth accounts before you turn 68 means you benefit from lower tax rates and can use funds without penalty for RMDs.
7. Plan for Long-Term Care
About 60% of people turning 65 today will need some form of long-term care during their lifetime, and Medicare covers very little of the cost. Long-term care includes in-home care, assisted living, and nursing facility care. Costs can vary depending on care type, but there are several funding options. Long-term care insurance can be purchased individually or as a hybrid plan with life insurance. You can also self-fund long-term care or use HSA funds.
It’s important to have family conversations about care preferences before you need it. Preparation is key for long-term care. Designate a healthcare proxy who understands your needs to be your advocate for long-term care when you can no longer advocate for yourself.
8. Review Your Estate Plan and Beneficiary Designations
An outdated estate plan or a forgotten beneficiary designation can override your wishes, sending assets to the wrong person or triggering unnecessary taxes and legal complications.
Be sure to review or create the following documents:
- Will and/or revocable living trust
- Durable financial power of attorney
- Healthcare power of attorney/healthcare proxy
- Living will/advance directive
- Beneficiary designations on all retirement accounts, insurance policies, and annuities
Beneficiary designations on accounts typically override what your will says, so triple-check asset designations are up-to-date.
Take the Next Step Toward a Confident Retirement
Turning 65 brings a unique set of financial decisions that deserve careful attention. Each person’s situation is different, and personalized guidance makes a meaningful difference. To get a complimentary, personalized plan based on your current situation, request a Wealth Blueprint today.
Frequently Asked Questions About Turning 65
What should I do 6 months before turning 65?
Before turning 65, you should review Medicare plan options, verify your Social Security earnings record, review your retirement budget and income sources, begin gathering estate planning documents for review, and schedule a meeting with a financial advisor to review your full plan.
How much money do I need to retire at 65?
There is no universal number; it depends on your spending, income sources, health, and life expectancy. A common starting point is to estimate annual expenses, subtract guaranteed income, and determine how many years your savings need to cover. Working with an advisor to stress-test your plan against inflation, market downturns, and healthcare costs is more reliable than any single rule of thumb.
Can I still work after turning 65?
Yes. The percentage of adults over 65 who work has nearly doubled in the past 35 years. Working affects Social Security benefits only if you are below full retirement age and earn above the annual limit. Working can also provide continued access to employer retirement plans and delay the need to draw down savings.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. This article was originally published April 8, 2020 and has been updated.
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