Ari Baum, CFP®
For many, turning 65 feels like a line in the sand, a milestone that carries both celebration and responsibility. You may still be working, planning your next adventure, or easing into retirement, but this birthday brings new choices that can shape your financial health and lifestyle for decades to come. From enrolling in Medicare to refining your investment and estate plans, the key is to approach this transition thoughtfully, not reactively.
It’s easy to feel overwhelmed by the paperwork, decisions, and fine print that come with this age. But with a clear plan, turning 65 becomes less about deadlines and more about opportunities to protect your income, simplify your finances, and design the next stage of your life with confidence.
Get Ahead on Medicare and
Health Coverage
Medicare is one of the first major items to address when you hit 65. Your Initial Enrollment Period begins three months before your birthday month and ends three months after. Missing this window can mean lifelong penalties, so it pays to plan early.
Start by choosing between Original Medicare (Parts A and B) or Medicare Advantage (Part C), which bundles hospital, medical, and often drug coverage under one plan. If you need prescription coverage, Part D can be added separately or through a Medicare Advantage plan that includes it.
For those still employed, compare your employer’s health plan with Medicare. Sometimes it makes sense to delay Part B to avoid paying duplicate premiums. Also, consider a Medigap supplemental policy to cover expenses that Medicare doesn’t, such as copayments or overseas emergencies.
Make a Thoughtful Social Security Decision
While many people assume 65 is the time to start drawing Social Security, your full retirement age may actually be 66 or 67, depending on your birth year. Claiming early means a permanent reduction in benefits, while waiting until age 70 can boost your monthly payment by roughly 8% per year.
Couples can coordinate their claiming strategies to maximize household income, especially when one partner has a higher earnings record. And if you’re still working, delaying benefits can also reduce the tax impact of your Social Security income later on.
Fine-Tune Your Retirement Income Strategy
This is the perfect time to look holistically at your 401(k), IRA, and pension balances. Consolidating accounts can simplify management and make it easier to coordinate withdrawals.
Even though Required Minimum Distributions (RMDs) don’t begin until age 73, planning ahead can help avoid large taxable distributions later. A smart withdrawal strategy balances tax-deferred, taxable, and tax-free accounts to manage both cash flow and taxes efficiently.
If you have a Health Savings Account (HSA), stop making contributions once you enroll in Medicare, but remember those funds can still be used tax-free for qualified medical expenses.
Revisit Insurance and Protection Plans
Insurance needs evolve as your lifestyle and financial goals shift. For many, long-term care insurance becomes more relevant at this stage, helping protect your assets from the high cost of extended care. If you already have a policy, review the benefits and inflation riders to ensure coverage keeps pace with rising costs.
Evaluate your life insurance as well. Some retirees may choose to reduce coverage if their children are grown and debts are paid off, while others may keep policies for estate or charitable purposes.
Refresh Your Estate and Legal Documents
Aging doesn’t just change your financial life, it reshapes your legacy planning too. Take time to update your will, trusts, and beneficiary designations to reflect current wishes. Outdated documents can create complications later, even if your intentions are clear.
You’ll also want to review your power of attorney and health care proxy so someone you trust can act on your behalf if needed. Keep these documents, along with insurance information, account lists, and passwords, organized and accessible to a loved one or advisor.
Redefine Lifestyle and Personal Goals
Turning 65 isn’t just a financial checkpoint, it’s an invitation to design how you want to live the next phase of your life. Start by reviewing your retirement budget to include healthcare, travel, hobbies, and giving back.
Many people consider downsizing or relocating to match their retirement lifestyle, whether that means moving closer to family, trading city life for quieter surroundings, or joining a vibrant 55-plus community. Equally important is prioritizing your well-being. Staying physically active, socially connected, and mentally engaged keeps both body and mind strong.
A New Beginning at 65
Rather than viewing this birthday as a countdown, think of it as a reset button, a chance to align your finances, health, and purpose for the years ahead. With preparation and perspective, turning 65 can feel less like an ending and more like the start of something meaningful. It’s the freedom to live life on your own terms, supported by a plan that’s as resilient as you are. q
The content is developed from sources believed to provide accurate information. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. Consult with a financial professional regarding your specific situation.
Ari Baum, CFP® is the Founder and CEO of Endurance Wealth Partners, with over 25 years of experience in the Financial Services industry. He brings his in-depth experience to Conceive. Believe. Achieve. for his clients. Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC. Brokerage and Advisory accounts carried by Wells Fargo Clearing Services LLC.
