The Financial Milestones Most People Don’t Hit Until Their 70s
With many people pushing major life events further back as the economy continues to be as unpredictable as next week’s weather, it may come as little surprise that financial milestones are following the trend line.
Even though many readers might imagine people in their 70s to be off enjoying some well-earned rest and relaxation (and maybe some sun-soaked tourism) throughout their golden years, the reality is a bit more complex. Which financial markers are many Americans missing until they’re well within retirement age?
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Retirement Accounts as a Tax Strategy, Rather Than a (Hard-To-Reach) Goal
When one hits one's 70s those retirement accounts switch from being a source of anxiety, in terms of a savings goal, into both a day-to-day lifeline and a resource for various tax strategies.
First up are required minimum withdrawals or RMDs. Typically, once you hit 73, you are required to start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA and other retirement accounts at this age. No more sitting on that nest egg!
That’s why it’s important for older investors and taxpayers to be well-aware of their withdrawal strategy — both in order to avoid triggering excessive Social Security taxes or Medicare surcharges and to maximize annual income while also reducing future RMDs. Roth IRAs do not have RMDs, and can provide more flexibility for strategies designed to minimize taxes.
Paying Off Your Mortgage in Your 70s: The New Normal?
With the median age of the average U.S. first-time homebuyer having crossed 40 years old for the first time recently, it could be that the average experience for older millennials is to actually end up paying off the mortgage in their 70s — if they ever manage to wrangle the means to buy a house in the first place.
Combine that with another gloomy stat, per Erin Talks Money, that 77% of retirees in 2025 were shouldering at least some degree of debt (versus just about 38% in 1989 and 43.2% in 2001) and the picture becomes a bit clearer. It’s difficult out there for nearly everyone, so be sure to buy only as much house as you can afford — and lock in the best rate you can, for as long as you’re able.
An aggressive payment strategy never hurt, either. Just be careful not to overextend yourself and keep at least a year’s worth of liquid assets handy in case things take a turn for the worse.
Estate Planning Becomes a Top-of-Mind Concern
With data from Caring.com showing that the percentage of Americans who have a will has fallen to just 24% in 2025 (down from 33% just a few years prior in 2021) — and even more surprisingly, that the middle-aged cohort ages 35 to 54 was least likely to have a will prepared — it appears that estate planning is being left to the last minute, which could end up costing those who dally.
Finance guru Suze Orman weighed in on the topic a couple years back, calling estate planning an “insanely important” task that could be completed in as little as 30 minutes, by taking advantage of her “Must Have Documents” tool.
Healthcare Costs Amount to Almost $200K During Senior Years, So Be Prepared
Fidelity recently found that the average 65-year-old retiree can now expect to shell out $172,500 on healthcare over their remaining years, meaning a fiscal bombshell could be in the cards for those without a solid plan to deal with mounting costs.
Other key points were equally worrisome: A full 20% of Americans have never considered this possibility and nearly as many survey respondents (17%) had taken exactly zero action to prepare for what’s to come.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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