We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Age 59 ½ isn’t considered a popular milestone, but it probably should be. At this age, a flurry of new financial options and benefits become available to you.
It’s also a good time to double-down on your investment strategy so that you can make your retirement as comfortable as possible.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- You’re probably already overpaying for this 1 ‘must-have’ expense — and thanks to Trump’s tariffs, your monthly bill could soar even higher. Here’s how 2 minutes can protect your wallet right now
If you’re quickly approaching or already at this underrated milestone, here’s what you should know.
New options available at 59 ½
Once you turn 59½, retirement account withdrawals are no longer subject to the 10% early withdrawal penalty, making it easier to access your 401(k), Roth IRA, or other qualified plans. While tapping into these funds isn’t always necessary, having the option provides added financial flexibility as you approach retirement.
This age is also ideal for starting Roth IRA conversions—moving money from traditional retirement accounts into a Roth IRA. You’ll pay taxes now, but future withdrawals will be tax-free. Converting before age 73, when Required Minimum Distributions (RMDs) kick in, can also help manage your tax burden.
Since the median retirement age is 62, by 59 ½, you should be ramping up your efforts in this final stretch.
Given the complexity of these calculations, working with a trusted, pre-screened financial advisor can help you develop a solid retirement plan and optimize your withdrawal strategy.
According to research by Vanguard, people who work with financial advisors see a 3% increase in net returns. This difference can be substantial over time.
Finding a financial advisor that suits your specific needs and financial goals is simple with Vanguard.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Final sprint before retirement
Every single year of added income or compounded growth can make a big difference to your lifestyle in retirement. With that in mind, 59 ½ is the ideal age to set yourself up so your golden years are as comfortable as possible. Aggressively paying down any outstanding debt is a great idea at this age. Surprisingly, 97% of retirement-age Americans are still in debt, according to USA Today.
By actively reducing your debt between age 59½ and retirement, you can significantly improve your financial outlook compared to many other retirees.
If you have substantial equity in your home, consider consolidating your debts and pay it down with a Home Equity Line of Credit (HELOC) from Lending Tree.
A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.
Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.
LendingTree’s marketplace connects you with top lenders offering competitive HELOC rates. Instead of going through the hassle of shopping for loans at individual banks or credit unions, LendingTree lets you compare multiple offers in one place. This helps you find the best HELOC for your situation.
You could also double down on your savings and investment strategy before your income stops. You can start making catch-up contributions to your 401(k) and other retirement plans from the age of 50, according to the IRS, but 59 ½ isn’t too late to start doing so.
Another way to grow your savings is to use an automated savings or investing platform like Acorns.
Acorns rounds up the price to the nearest dollar and automatically invests the difference for you in a smart investment portfolio.
For example, if you buy coffee for $4.30, Acorns will round up to $5.00 and automatically save that 70 cents. These small amounts can add up significantly – just $2.50 in daily round-ups could accumulate to $900 per year, helping you build your emergency fund without thinking about it.
Plus, if you sign up now you get a $20 bonus.
Finally, this is the right age to consider all the subjective aspects of your retirement lifestyle. Take the time to figure out what you value most and create a strategy to make that possible in this final stretch before you leave the workforce. That’s why it’s important to be consistent in building a cash cushion for your retirement.
Putting your cash in a high-yield checking or savings account can help you grow your cash cushion at a faster rate.
Wealthfront Cash, for example, offers a much higher 4.00% APY on deposits. That’s just about ten times higher than the national average of just 0.42% APY offered by traditional savings accounts.
The account has no annual or maintenance fees and is insured by the Federal Deposit Insurance Corporation for balances up to $8 million. Plus, if you fund your account with $500 or more, you can get a $30 bonus.
This way, you can make the most of every dollar in your retirement planning.
What to read next
- Millions of Americans now sit on a stunning $35 trillion in home equity — here’s 1 new way to invest in responsible US homeowners while targeting a 14%-17% IRR
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
