Turning 70 in 2025? 2 Things You Need to Know

Turning 70 is something to celebrate. By that age, you've no doubt had your share of experiences and learned a lot of things in the course of your life. But in addition to throwing yourself the blowout party you deserve, you should also be strategizing about a couple of key aspects of retirement. Here are two things to put on your radar.

1. It's time to sign up for Social Security

If you've been retired for a good number of years already and you've yet to claim Social Security, it could mean that you're not so reliant on those benefits for income. And that's a good thing.

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But you should know that once you turn 70, there's no sense in holding off on Social Security. So even if you don't need the money, you might as well sign up.

Delaying Social Security past your full retirement age can result in boosted benefits. Specifically, you'll get an 8% bump for each 12-month period you delay.

But those delayed retirement credits stop racking up once you turn 70. So at that point, it's time to start collecting your money.

And don't worry if you happen to still be working. There's no issue with earning a paycheck from a job and collecting Social Security at the same time.

If you do so before reaching full retirement age, you risk having some benefits withheld if your paycheck is too large. But if you're on the cusp of 70, this isn't a concern.

2. It's time to start thinking about RMDs

If you have your retirement savings in a traditional IRA or 401(k) plan, the IRS is eventually going to force you to take withdrawals in the form of required minimum distributions, or RMDs. And you don't want to ignore those.

The IRS imposes a 25% penalty on RMDs that aren't taken on time (though if you correct your mistake quickly enough, that penalty can be reduced to 10%). And it's silly to lose money to a penalty when you no doubt worked hard to save.

If you're turning 70 this year, your RMD age is 73. Knowing that, you have time to take steps to reduce your RMDs, like converting some funds to a Roth retirement account.

Roth conversions, however, could have a big impact on your taxes in the near term. And since they count as income, they could also make it so you're charged more for Medicare in a couple of years. That's because higher earners can be subject to surcharges on both Medicare Parts B and Part D known as income-related monthly adjustment amounts, or IRMAAs.

For this reason, it's a good idea to consult a financial advisor or tax professional if you're looking to move funds into a Roth account. They can work with you to potentially minimize the tax blow and address other issues that might ensue.

Turning 70 is a huge milestone. Keep these important points in mind so you don't lose out on Social Security income or end up overwhelmed by RMDs.

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