Timing is everything.

From accumulation to distribution

Your entire financial life has been about accumulating assets. Now the calculus changes: make those assets last 25–30+ years, minimize taxes on withdrawals, and don't run out before you run out of life.

The biggest mistake in your 60s is treating retirement planning like you're still accumulating. The decisions are fundamentally different — and the stakes of getting them wrong are too.

Social Security: the most important timing call

Claim as early as 62 or as late as 70. Each year of delay increases your benefit: ~6.67% per year from 62 to FRA (67 for most), then 8%/yr from 67 to 70.

Break-even math: claiming at 70 vs. 62 requires you to live past about 80 to come out ahead on total lifetime benefits. If you're healthy and have other income to bridge the gap, delaying to 70 is often right — especially for the higher-earning spouse.

Spousal and survivor benefits add complexity — a married couple has multiple claiming combos to optimize.

Medicare: don't miss your window

Medicare enrollment starts 3 months before your 65th birthday. Miss this window and face permanent penalties: 10% more per year late for Part B, 1% per month late for Part D.

The Medicare maze: Part A (hospital, usually free), Part B (medical, ~$185/mo for most), Part D (prescriptions), and either Medigap or Medicare Advantage. Total cost depends heavily on health needs and location.

High earners pay IRMAA surcharges. At $106–$133k single or $212–$266k married, Part B jumps from $185 to $259/month. Plan income carefully in the years before Medicare to avoid triggering higher brackets.

Required Minimum Distributions (RMDs)

Traditional IRA and 401(k) have RMDs starting at 73 (SECURE Act 2.0). IRS forces you to withdraw a % of the balance each year — and pay ordinary income tax.

RMDs can push you into higher brackets, increase Medicare premiums (IRMAA), and make more Social Security taxable. The fix: Roth conversions in your early 60s before RMDs start, reducing tax-deferred balances while in a relatively low bracket.

Roth IRAs have no RMDs. Significant traditional IRA balances? Converting strategically over several years in your 60s can substantially reduce lifetime taxes.

Withdrawal order: sequence matters

Conventional wisdom: (1) taxable, (2) tax-deferred, (3) tax-free. Not always optimal.

For most retirees, a mixed withdrawal strategy that keeps income in lower brackets throughout retirement beats a rigid sequence. Often means drawing down traditional accounts before RMDs force large distributions, while letting Roth grow tax-free as long as possible.

Estate planning: non-negotiable

No estate plan in your 60s = burden for your family. Minimum: will, durable POA, healthcare proxy, and beneficiary designations on all accounts.

Note: assets with named beneficiaries (retirement accounts, life insurance, joint accounts) pass outside probate. Your will doesn't control them. Update beneficiaries separately after every major life event — divorce, death, birth of grandchildren.