A lot of people retire in their 60s, but doing so isn't for everyone. And there can be benefits to delaying retirement until your 70th birthday, especially if you enjoy what you do for a living and your job isn't particularly stressful.
But if you're turning 70 next year, you may be more than ready to bring your career to a close. Here are some key moves to make if you'll be retiring at 70 in 2026 that could pave the way to success.
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1. Claim Social Security if you didn't already
If you've been working full-time all these years, you may have opted to delay Social Security past full retirement age for boosted monthly checks. After all, why take benefits when your paycheck hasn't shrunk?
If you'll be retiring at 70, make sure to sign up for Social Security right away, since there's no financial incentive to delay your claim beyond that point. In fact, even if you'll be retiring a month or two after turning 70, it still pays to start getting your Social Security checks as soon as you turn 70.
2. Build a sustainable withdrawal strategy
Ideally, you'll be kicking off retirement with a healthy IRA or 401(k) balance. But it's important to make that money lasts as long as you need it to.
If you're retiring at 70, you may have a couple of things working in your favor with regard to your savings. First, you may have larger Social Security checks coming your way, which means there may be less pressure on your nest egg. Secondly, it means you may not need your savings to last quite as long as someone retiring in their 60s, which gives you the leeway to withdraw at a larger rate.
A common rule of thumb for managing retirement plan withdrawals is the 4% rule. The 4% rule starts you off withdrawing 4% of your balance your first year of retirement and adjusting future withdrawals for inflation.
That rule, however, is designed to help your savings last for 30 years. If you're retiring at 70, you may not need your money to last as long, which could lead to larger monthly or annual paychecks from your IRA or 401(k).
3. Pay attention to how your portfolio is invested
Retirement doesn't mean your portfolio no longer needs to be set up for growth. You can, and should, feel free to scale back on stocks in your portfolio for more stability. But it's important to keep a portion of your savings in the stock market so your portfolio can continue to generate solid returns.
One approach you may want to take is a bucket strategy, which allocates your assets to meet different needs. It also means taking on certain levels of risk depending on when you plan to use the money.
Under this strategy, you'd put about one to three years' worth of living expenses in cash, depending on your income needs and risk tolerance. You'd then put medium-term funds into bonds or similarly stable assets, and you'd put your remaining funds into stocks for continued growth.
To be clear, this doesn't mean that the stock portion of your portfolio needs to be invested in growth stocks. It's OK to shift into slightly less risky assets like dividend stocks or ETFs. The key is to make sure you have access to cash in the near term while allowing your portfolio to continue growing.
You may also, at this stage of life, want to consider real estate investment trusts (REITs), since many pay above-average dividends. Dividends can serve as a hedge against market downturns, allowing you to feel more comfortable as an investor later in life.
If you've waited until age 70 to retire, you truly deserve to enjoy that stage of life to the fullest. Following these steps could make it possible to start retirement off on the right foot.
