Turning 65 triggers a cascade of financial decisions that determine your retirement security for decades. A new quiz from Kiplinger helps you assess whether you're prepared for this pivotal age.
The key milestones cluster around three areas: Social Security, Medicare, and retirement account withdrawals. Getting any of these wrong costs money.
Social Security decisions anchor your retirement income. Claiming at 62 reduces your monthly benefit by roughly 30 percent. Waiting until 70 increases it by 24 percent per year. Your break-even point depends on life expectancy, health status, and whether you have other income sources. Many people claim too early and lock in permanently reduced benefits.
Medicare enrollment opens three months before your 65th birthday. Missing the enrollment window triggers lifetime penalties on premiums. You must choose between Original Medicare (Parts A and B) plus a supplemental plan, or a Medicare Advantage plan. These options carry different deductibles, copays, and network restrictions. Part D prescription drug coverage also requires timely enrollment.
Required Minimum Distributions from traditional IRAs and 401(k)s start at 65 for most retirees. The IRS calculates these withdrawals using life expectancy tables. Underfunding RMDs carries a 25 percent penalty on the shortfall, recently increased from 10 percent.
The Kiplinger quiz tests your knowledge across these categories. Ten questions cover filing timelines, benefit calculations, plan selection, and account rules. Scoring poorly signals that you need targeted education before making irreversible choices.
This matters because one wrong decision costs thousands. Claiming Social Security at 62 instead of 67 reduces lifetime benefits by roughly $100,000 for a median earner. Choosing the wrong Medicare plan can saddle you with thousands in annual out-of-pocket costs. Missing RM