Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
The Department of Labor has published information to help people plan for retirement using information and tools that review how to get the most out of workplace benefits, Social Security and Medicare, among other resources.
In a blog post, “A golden opportunity: retirement planning for older Americans,” written by Assistant Secretary of the Employee Benefits Security Administration Lisa Gomez, offers tips to help workers with the transition to retirement, including specific suggestions for different ages.
For workers who are 10 to 15 years from the date they wish to retire, the department suggests specific DOL publications and worksheets to help determine how much savings someone would need in retirement.
The interactive worksheets can also help workers track their savings progress.
“We recognize the enormous contributions that retiring workers have made to this country,” wrote Gomez. “We are committed to ensuring that every American can transition from years of hard work into the next chapter of retirement with the dignity and financial security they deserve, and the retirement savings they’ve earned along the way.”
For workers, choosing when to retire is also important. To help workers determine when to retire the DOL also provides “The Retirement Toolkit,” as a resource.
“This Older Americans Month take time and plan so you can enjoy a financially secure retirement,” wrote Gomez. “Start now and be well-informed so you can make timely decisions and, if necessary, make changes while you have time before retirement. You will enjoy the benefits of this planning later.”
The DOL provided an age-based timeline for retirement preparation:
- Age 50 is when workers can begin to make catch-up contributions to 401(k) and other retirement accounts.
- Age 59 ½ there are no longer tax penalties on early withdrawals from employer-provided retirement savings plans such as 401(k) plans and other individual retirement accounts.
- Age 62 is the earliest age to begin collecting Social Security retirement benefits; however, claiming before the full retirement age results in reduced monthly benefits.
- Age 65 workers can enroll in Medicare and Medicare Part D.
- Age 66-67 is the age to start receiving Social Security full benefits, depending on birth year.
- Age 67-70 claim Social Security Delayed Retirement Credits, which increase monthly benefits for each month claiming is delayed between the full retirement age and age 70; and
- Age 73 start taking required minimum withdrawals from most retirement accounts; otherwise face penalties.
« Industry Groups Recommend Fewer and Staggered Retirement Plan Disclosures