Turning 60 in 2026? 3 Things You Need to Know

Keep these things in mind as the new year arrives.

Reaching the age of 60 is a big milestone. It marks the beginning of a new decade -- one that might bring about exciting changes, like getting to retire and enjoy the freedom that comes with it.

If you're turning 60 in 2026, there are a few financial matters to keep on your radar. Focus on these three in particular as that big birthday approaches.

Image source: Getty Images.

1. You can tap your retirement savings penalty-free -- but you may not want to

Once you turn 59 1/2, you can take an IRA or 401(k) plan distribution without incurring an early withdrawal penalty. But that doesn't mean you should tap your savings at 60.

Age 60 is a fairly young age to be raiding your retirement plan. If you begin withdrawing large amounts from your IRA or 401(k), you could risk running out of money later in life, especially if you end up living well into your 90s or beyond.

That said, if you have a large sum of money saved, your IRA or 401(k) could be your ticket to a partial retirement -- and an easier lifestyle.

You may not be ready to stop working fully. But if your job is stressful and you're looking to scale back, tapping your retirement savings could allow you to work part-time and reclaim some hours during the week for leisure. Or that money could provide a cushion if you opt to transition into freelance work or take the leap into starting your own business.

2. You're still too young for Social Security

You may be excited at the idea of getting to collect Social Security. But if you're turning 60 in 2026, you'll have to wait a bit longer.

The earliest age you can claim Social Security is 62. And you're not eligible for your monthly benefits without a reduction until age 67, which is your full retirement age based on your birth year.

But while you can't claim Social Security at 60, you can start thinking of a filing strategy. That strategy should hinge on your retirement plans, your projected income needs, your savings level, and your health and family history.

If you aren't very confident in your retirement nest egg, waiting until age 67 or beyond to claim Social Security could make sense. (You can boost your benefits by delaying your claim, and you get credit for doing so up until age 70.) However, if you have a lot of savings and want to start your retirement early, filing at 62 could be your best bet.

3. You may want to get long-term care insurance

If you didn't get around to buying long-term care insurance in your 50s, you may want to prioritize it in your 60s. The cost of long-term care, which includes assisted living, nursing homes, and home health aides, can be astronomical. Unfortunately, Medicare generally will not pay for it.

One thing you should know about long-term care insurance is that premium costs tend to rise with age. Age 60 is generally not too late to get coverage. But the longer you put off long-term care insurance, the more you might pay -- and the less affordable it might end up being.

At the very least, take some time to compare plans and premiums to get an understanding of the costs you might be looking at. Research the cost of long-term care itself as well, so you know what to expect.

Turning 60 is a big deal. As you gear up to celebrate that milestone, be sure to keep these important points in mind. Being proactive with financial matters could set you up for success during this exciting new decade of life.

View Original Article