Turning 70 in 2026? 2 Key Things You Need to Know.

Some people love birthdays and believe in living it up that day. Others prefer to treat their birthday like any old day of the year.

But if you're turning 70 in 2026, it's a milestone worth celebrating -- and planning for financially. Here are two important items to put on your radar.

1. You should sign up for Social Security if you haven't done so already

If you're turning 70 in 2026 and haven't yet claimed Social Security, it may be because you're still working. Or, it may be that you retired a few years ago, didn't need Social Security right away, and decided to hold off and grow your monthly benefits.

You're probably aware that for each year you delay your Social Security claim past full retirement age, your monthly benefits get an 8% increase. But that incentive runs out at age 70. So if you haven't claimed Social Security yet, make sure to sign up when you turn 70 so you don't miss out on any of that money.

That said, don't panic if you sign up shortly after your 70th birthday. If you're heading out of town on a month-long cruise, for example, and don't want to have to worry about Social Security until you get back, that shouldn't be an issue.

Social Security will pay up to six months of retroactive benefits if you're late filing for benefits. But since there's no financial upside to waiting beyond age 70, you might as well start getting that money as soon as possible if you can. Even if you don't have a specific need for it, you could always donate it charity or find something meaningful to do with it.

2. It's time to put RMDs on your radar

If you have your savings in a Roth retirement account, you don't have to worry about required minimum distributions (RMDs). But if you have a traditional IRA or 401(k), you're soon going to have to start taking those mandatory withdrawals or otherwise face a costly 25% penalty.

The good news is that RMDs no longer start at age 70 1/2 like they did in the past. The SECURE Act raised the age to start taking RMDs to 72, and then SECURE 2.0 pushed that age out even further to 73 (or 75 for people born in 1960 or later).

If you're turning 70 in 2026, age 73 is your RMD age. And while that may be a ways off, it's important to plan for your RMDs, especially if you expect them to be large and therefore constitute a big tax burden.

Remember, too, that large RMDs could subject you to surcharges on your Medicare Part B and D premiums known as income-related monthly adjustment amounts, or IRMAAs. If you're worried about RMD-related repercussions, it could be a good idea to talk to a financial advisor about ways to minimize the blow.

One option, for example, may be to plan on doing qualified charitable distributions, or QCDs, which have you donating money directly from your IRA to a registered charity. This satisfies your RMD while getting you out of paying taxes on that sum.

Of course, something else you could look into is doing a Roth conversion in the new year. That could potentially help you avoid having to take RMDs at age 73.

Keep in mind, though, that a Roth conversion could raise your taxable income substantially. So once again, you risk not only a big IRS bill, but also having to pay more for Medicare coverage two years after the fact. That's why careful planning is key.

Turning 70 is definitely something worth celebrating. Just make sure to sign up for Social Security if you haven't done so already, and to be mindful of your upcoming RMDs so you can plan for them accordingly.

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