Ages 60-69

Your 60s Financial Planning Checklist

Welcome to retirement! Your 60s are about transitioning to retirement income, enrolling in Medicare, optimizing Social Security, and enjoying the freedom you've earned. Live well while protecting what you've built.

65
Medicare Enrollment
4%
Safe Withdrawal Rate
Enjoy
Retirement Life
73
RMD Age
View Complete Checklist

Your Complete Financial Checklist

Optimize your retirement years and ensure financial security throughout your 60s

1. Enroll in Medicare at Age 65

Missing your Medicare enrollment window triggers lifetime penalties. Enroll during your Initial Enrollment Period (3 months before, month of, and 3 months after 65th birthday).

Action Steps:

  • Part A (hospital): Free for most | Part B (medical): ~$174/month base premium
  • Add Part D (prescription): ~$30-50/month average
  • Choose Medigap (supplement) OR Medicare Advantage (all-in-one)
  • Review annually during Open Enrollment (Oct 15-Dec 7)

2. Claim Social Security Strategically

Most should wait until 70 for maximum benefit (8% increase per year from Full Retirement Age). Only claim early if health issues or immediate need.

Action Steps:

  • Claiming at 62: 70% of FRA benefit | 67: 100% | 70: 124%
  • If married: Higher earner should delay to 70 for survivor benefit
  • File and suspend no longer available—coordinate timing carefully

3. Implement Retirement Withdrawal Strategy

Use 4% rule as starting point: Withdraw 4% of portfolio year 1, adjust for inflation annually. This historically sustains portfolios for 30+ years.

Action Steps:

  • $1M portfolio = $40K first year withdrawal
  • Withdraw from taxable accounts first, preserve tax-deferred growth
  • Reduce withdrawal rate if market drops significantly (flexibility key)

4. Prepare for Required Minimum Distributions

RMDs begin at age 73. Failure to withdraw triggers 50% penalty on the amount you should have withdrawn. Plan ahead to minimize tax impact.

Action Steps:

  • RMD = Account balance ÷ life expectancy factor (IRS table)
  • Consider Qualified Charitable Distributions (QCD) to reduce taxable income
  • Convert traditional IRA to Roth before 73 in low-income years

5. Shift to Conservative Portfolio

Target 40-50% stocks, 50-60% bonds/cash. You still need growth for 20-30 year retirement, but can't afford major losses early in retirement.

Action Steps:

  • Keep 2-3 years expenses in cash/short-term bonds
  • Maintain stock exposure for inflation protection over 20+ years
  • Avoid panic selling—market downturns are temporary

6. Finalize Estate Plan and Legacy

Ensure your wealth transfers smoothly to heirs. Update documents every few years and after major life events.

Action Steps:

  • Review all beneficiary designations (401k, IRA, life insurance)
  • Update will, trusts, and powers of attorney
  • Consider gifting strategies ($18K/year per person tax-free)
  • Communicate plans with heirs to avoid surprises

7. Spend and Enjoy Your Retirement

You worked hard for this—don't die with millions in the bank. Research shows retirees are happiest when they spend on experiences, especially in early retirement years.

Action Steps:

  • Travel while you're healthy (60s are best years for active travel)
  • Pursue hobbies, volunteer, spend time with family
  • Budget for fun—don't be afraid to spend your hard-earned money
  • Consider part-time work if bored—retirement doesn't mean doing nothing

8. Implement Charitable Giving Strategy

If philanthropy matters to you, strategic giving can maximize impact while providing tax benefits.

Action Steps:

  • Qualified Charitable Distributions from IRA (age 70½+, up to $100K/year)
  • Donor-advised funds for tax-efficient giving
  • Donate appreciated stock instead of cash (avoid capital gains tax)

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