Part 1 of 3: Ages 60 to 65
When I sit down with people who are interested in financial advice, one of the main questions they ask is almost always some version of, “When can I retire?”
They don’t ask as often, “How long do I need to plan for?”
That’s a big question. Getting to retirement is one thing. Planning for the years that follow is another.
The Number to Keep in Mind
Social Security’s life table puts average remaining life expectancy at age 65 at about 18 years for men and 21 years for women.
But averages aren’t deadlines. You could live fewer years, or quite a few more. A retirement lasting 20 years or longer is worth planning for.
That’s a long stretch of life, with different seasons.
My dad worked into his 70s and lived another 10 years after that. He enjoyed being a nurse. He told me it was the best job he ever had.
He did mention one regret, though. As a young woman, my mom had wanted to pursue a similar vocation. He wished he had encouraged her. His machismo got in the way, he admitted. Looking back, he said he had been a fool. They could have worked together and made twice as much money.
They did work together in another way: as prayer partners. When friends were sick, they prayed for them, and my mom would show up and encourage them.
To me, their story is about more than money. It’s about meaningful work, supporting each other’s hopes, and finding ways to serve together. Those things belong in a retirement conversation, too. We’re not just planning how to pay for those years. We’re thinking about how we want to spend them.
A long retirement also brings practical challenges, sometimes when we have less flexibility—literally and figuratively:
- More years of expenses to cover.
- Inflation wearing away at buying power.
- Medical costs and changing health needs.
Breaking a Big Question into Smaller Parts
It’s a good idea to apply “Top Down Design,” a term I borrowed from the computer science world. Start with the big picture, then break the project into smaller parts.
For this series, I’m dividing retirement into three seasons:
- Part 1: Ages 60 to 65.
- Part 2: Ages 66 to 75.
- Part 3: Ages 76 and beyond.
These aren’t rigid boundaries. My dad’s experience is a good reminder that not everyone stops working at the same age. They’re simply a way to organize the decisions.
Stage 1: Ages 60 to 65
Some people stop working during these years. Others cut back or begin thinking about slowing down. They see the turn on the horizon.
A few decisions come into view at once.
Social Security. If you’re eligible, retirement benefits can begin at 62. For someone born in 1960 or later, full retirement age is 67. Starting at 62 generally means a monthly retirement benefit 30 percent lower than the full-retirement-age amount.
If you claim before full retirement age and keep working, earnings above certain limits can also cause benefits to be withheld. Those withheld benefits aren’t simply lost: Social Security recalculates your benefit at full retirement age to credit the months affected.
The health insurance gap. Medicare generally begins at 65, although some people qualify earlier. If you retire before then, how will you cover insurance premiums and out-of-pocket medical expenses?
Your pension, if you have one. Eligibility and payment choices depend on your plan. Look at when payments can begin, what each option pays, and what would continue to a surviving spouse. Don’t assume every pension offers a lump sum.
The key questions: Where will your income come from? When will you claim Social Security? What will you do for health insurance?
At 65: The Medicare Decision
Medicare has enrollment deadlines worth putting on your calendar before your birthday arrives.
For most people turning 65, the initial enrollment period lasts seven months: the three months before your birthday month, your birthday month, and the three months after.
If you’re already receiving Social Security benefits at least four months before turning 65, you generally get Medicare Parts A and B automatically. Otherwise, you usually need to sign up through Social Security.
Not everyone needs to start Part B at 65. Qualifying coverage through your or your spouse’s current employment may allow you to delay it and use a special enrollment period later. COBRA and retiree coverage aren’t the same as active-employment coverage for this purpose. Check before delaying; coverage gaps and lasting penalties can result.
You’ll also need to consider:
- Original Medicare or Medicare Advantage. Original Medicare includes Parts A and B. Medicare Advantage is a private-plan alternative, with its own costs and coverage rules.
- Prescription coverage. With Original Medicare, you can add a separate Part D plan. Most Medicare Advantage plans include drug coverage.
- Supplemental coverage. Medigap helps pay certain costs under Original Medicare—not Medicare Advantage—and has its own enrollment protections and timing.
Which arrangement fits your budget, health needs, prescriptions, and doctors? And have you checked the deadlines that apply to you?
What’s Next
In Part 2, we’ll look at ages 66 to 75: Social Security at full retirement age, the option of delaying benefits, and required minimum distributions from retirement accounts when those rules apply.
The goal isn’t to solve every retirement question at once. It’s to see the big picture, then work through one season at a time.
For general educational purposes only. Your benefit eligibility, coverage, and planning needs will depend on your circumstances.