Retirement Planning Guide

Key ages at a glance

When you claim Social Security matters

If you were born in 1960 or later, your full retirement age is 67. You can start as early as 62, but your benefit will be about 30% lower than it would be at 67. For each full year you wait past full retirement age, up to 70, Social Security adds 8% to your benefit.

There’s no single right age. Your health, your other income, and your spouse’s benefits all play a part, and the decision is hard to undo.

Up to 85% of your Social Security can be taxed

Depending on your other income, up to 85% of your Social Security benefits can count as taxable income on your federal return. Florida has no state income tax, so here it’s the federal bill that matters. Which accounts you draw from, and when, can change how much of your benefit gets taxed.

Don’t miss your Medicare window

Your Initial Enrollment Period for Medicare lasts seven months. It starts three months before the month you turn 65 and ends three months after it. If you miss it, you may have to wait to sign up and pay a Part B late enrollment penalty for as long as you have Part B, and the penalty grows the longer you wait. If you’re still covered by an employer plan, different rules may apply, so check before you skip it.

Turning 65 brings bigger deductions

Taxpayers 65 and older get a larger standard deduction than younger filers, whether they’re retired or not. On top of that, from 2025 through 2028 there’s a new deduction of up to $6,000 per person, or $12,000 for a married couple filing jointly when both qualify. It phases out above $75,000 of modified adjusted gross income ($150,000 for joint filers), and you can take it whether or not you itemize.

Free tax help starts at 60

The IRS runs a program called Tax Counseling for the Elderly that offers free tax help to people age 60 and older.

You can keep saving in an IRA

Since 2020, there’s been no age limit on contributing to a traditional or Roth IRA. As long as you or your spouse still have earned income, you can keep putting money away, within the annual limits. Roth contributions also have income limits.

Required distributions start at 73

You must take your first required minimum distribution from a traditional IRA for the year you turn 73. Miss one and the IRS charges a 25% excise tax on the amount you should have taken, reduced to 10% if you correct it in time. Put it on your calendar well before that birthday.

Three things to plan for before you retire

1. A backup plan for an early retirement

Not everyone gets to choose their retirement date. Health, a layoff, or caring for family can move it up without warning. If that happened to you, would you know where your income would come from, and how you’d cover health insurance until Medicare starts at 65?

2. Debt you still carry

A mortgage or student loans you take into retirement have to be paid from retirement income. They belong in the budget before you retire, not after.

3. The travel you’ve been looking forward to

Travel is easy to leave out of a retirement budget. Put it in the plan, with a number, so it doesn’t come out of money meant for something else.

How these rules fit your plan

Each of these ages touches more than one part of your plan. In our 8 Elements, Social Security timing and required distributions sit with Income Optimization and the Tax Planner, and Medicare and early-retirement planning touch the Emergency Builder. We look at them together so one decision doesn’t undo another.