In Your 70s: Making sure your money outlasts you.

By your 70s your pension and Social Security are likely your primary income sources and your investment portfolio is in distribution mode. The planning focus shifts from accumulation to preservation, tax efficiency, and making sure your money outlasts you.

Required minimum distributions begin at 73 or 75

Depending on your birth year RMDs kick in at either 73 or 75. You are now required to take money out of your pre-tax retirement accounts each year whether you need it or not.

If you have a large traditional 403(b) or IRA balance this can push you into higher tax brackets and increase your Medicare premiums through something called IRMAA surcharges. These are not hypothetical concerns. We see them trip people up regularly.

There are strategies to manage this. The RMD amount is calculated based on your account balance and life expectancy tables published by the IRS. Reducing the pre-tax balance through conversions before RMDs begin is one approach. Qualified charitable distributions, which allow you to send IRA money directly to a charity tax-free, is another. Neither is right for everyone but both are worth understanding.

Longevity risk is the primary concern now

A healthy 70-year-old woman has roughly a 50% chance of living past 87. A couple has a better than even chance that at least one of them reaches 90. Your portfolio needs to be built for the long run.

Too conservative and inflation quietly erodes your purchasing power over 20 years. What feels like a comfortable monthly draw at 72 buys meaningfully less at 85 if your portfolio has not kept pace with inflation.

The bucket strategy keeps your near-term needs covered in safe liquid assets while your growth money stays invested and has time to do its job. This framework does not change just because you hit your 70s.

Learn more about longevity risk →

Roth conversions may still make sense

Even in your 70s there can be a window to convert remaining pre-tax balances into Roth, particularly in years when your income happens to be lower or when thinking ahead to how a surviving spouse will be taxed as a single filer on a higher income.

This is not a blanket recommendation. It depends on your specific account balances, income sources, and projected tax situation. We evaluate this case by case.

Legacy and estate planning

If you have pre-tax retirement accounts and want to leave something to your children, the account structure matters more than most people realize.

Inheriting a large traditional IRA means inheriting a large tax bill. Under current rules most non-spouse beneficiaries are required to distribute the entire inherited IRA within 10 years, which can push them into significantly higher tax brackets during those years.

A Roth inheritance is a completely different conversation. Tax-free to them. No forced distributions hitting their income during their highest earning years.

Beneficiary designations on retirement accounts also override your will entirely. If your designations are outdated or incorrect the account goes to whoever is listed regardless of what your estate documents say. We check this for every client and you should too.

Retirement planning does not stop at 65. Let's make sure your plan holds up for the decades ahead.