Pre-Retirement Playbook
A guide to help you prepare for retirement.
Suddenly, your someday is in reach.
Thinking about retirement can bring excitement, anticipation, and curiosity, and while you may have started preparing early, it's crucial to reassess as retirement approaches.
This guide offers a timeline of actions and key ages to help you evaluate your needs and savings goals. Consult a tax advisor to ensure you make the most of this important milestone.
You have a human guide, too.
Talk with a Participant Services Representative for more guidance about what you learn here.
How close are you to retirement?
How to prepare.
Narrow down your goals.
What's a must for your retirement? Decide what you want to do with your days.
Work through your budget.
Now's the time to get serious about your plan for spending in retirement. Use our Budget Planner.
Make a plan for any debt.
Can you pay off your debt, or will you have to carry it into retirement?
Max out 401(k) contributions.
Take full advantage of both your contributions (including catch-up contributions) and your employer's match. Change your 401(k) contribution rate.
How to prepare.
Commit to your goals.
Finalize what you want to achieve and focus on a plan to make it happen.
Finalize your budget.
Set a budget that you feel really good about. Try sticking to it before retirement starts. Here's some help: Budget Planner.
Use 401(k) catch-up contributions.
Take advantage of all your 401(k) contribution options. Adjust your contribution rate.
Tip:
If you have multiple retirement accounts, now would be a good time to combine your accounts to make it easier to keep track of your progress.
How to prepare.
Talk with Human Resources.
Learn more about your employer's transition process for retiring.
Do a personal and financial assessment.
Make sure your personal data in all your financial accounts is up to date and your beneficiaries designated. Now is a good time to review or create your estate plan, designate a power of attorney, and assess your insurance needs.
Decide whether you plan to work part-time.
Continuing to work may impact Social Security and other benefits. Check the Social Security website for details1.
How to prepare.
Set your Social Security start date.
The earliest you can apply for Social Security is four months before the date you will first take benefits. Set up your Social Security account1.
Set up Medicare benefits.
Apply for Medicare benefits three months before the month you turn 65. Learn about the Medicare application process1.
Decide on a 401(k) plan distribution strategy.
Learn about the pros and cons of your choices before you decide. Review your 401(k) options.
Tip:
Review preparations from prior years to cover all your bases.
How to prepare.
Notify your employer.
Begin the steps required by your employer to transition into retirement.
Check and check again.
Review important dates, account information, required steps, and contact information. Quick links to help you: Social Security1, Medicare1, and account beneficiaries.
Envision your future.
What's first on your list? Think about how you'll spend the start of retirement.
Tip:
Review preparations from prior years if you haven't already.
Saving enough?
Use our Retirement Savings Calculator to get an idea of where you stand.
Watch for milestones.
There are retirement-related milestones associated with your age, and it's important to know what's ahead. Some birthdays mean big changes. Don't miss out!
- At 50: You may be eligible to make catch-up contributions to your 401(k) plan or IRA, if available.
- At 50–60: You may qualify for retiree benefits from work based on age and years of service, if available.
- At 55: You may be eligible to make catch-up contributions to a Health Savings Account (HSA).
- At 55: (age 50 for qualified public safety employees). If you retire early, you could be exempt from the 10% tax penalty on early retirement account withdrawals.
- At 59½: Generally, the 10% early withdrawal penalty no longer applies to IRAs or qualified retirement plans.
- At 60: A surviving spouse becomes eligible for Social Security benefits.
- At 60-63: You may be eligible to make higher catch-up contributions to your 401(k) plan or IRA, if available.
- At 62: You become eligible for early retirement benefits from Social Security. If you wait to take Social Security benefits, the closer you get to age 70, the larger your benefit.
- At 65: You become eligible for Medicare. If you enroll, you're no longer permitted to make contributions to a Health Savings Account (HSA).
- At 65: The 20% penalty on non-qualified HSA distributions no longer applies.
- At 66–67: You become eligible for full retirement age (FRA) benefits from Social Security.
Your retirement is almost here. Commence happy dance.
All your years of saving and investing are about to pay off. Continue preparing for the next chapter in your life.
Watch to learn.
Join live, interactive, and on-demand events with experienced professionals centered on planning for retirement at schwab.com/yourmoney.
Remember, we're here to help.
Call us as you prepare to retire.
1. You will be accessing a third-party website. Schwab Retirement Plan Services, Inc. (SRPS) has not reviewed the sites referenced herein and is not responsible for the content of any off-site pages or any other linked sites. No judgment or warranty is made with respect to the accuracy, timeliness, completeness or suitability of the content of the services or sites to which these screens link, and SRPS takes no responsibility therefore. A link to a service or site outside of SRPS is not an endorsement of the service or site, its content, or its sponsoring organization. SRPS provides links to other Internet sites solely as a convenience to its users. Your linking to these sites is at your own risk.
2. You generally have to start taking required minimum distributions (RMDs) no later than April 1 of the year following the calendar year you reach age 73 or retire, whichever is later. If you were born on or before June 30, 1949, the required minimum distribution age is 70½. If you were born after June 30, 1949, and before January 1, 1951, the required minimum distribution age is 72. If you own 5% or more of the business sponsoring the Plan, other provisions may apply. Refer to your Plan document for details. However, you are not required to take a minimum distribution from your Roth account(s) during your lifetime.
A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.
This information is for educational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
Schwab Retirement Plan Services, Inc. provides recordkeeping and related services with respect to retirement plans and has provided this communication to you as part of the recordkeeping services it provides to the Plan.
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