Why Age 59½ Is a Critical Turning Point in Retirement Planning
When people think about retirement planning, they often picture the big decisions happening after they stop working. But in reality, one of the most important—and overlooked—opportunities comes just before retirement, at age 59½.
This isn’t about leaving your job or retiring early. It’s about gaining more control over your financial future while you’re still working—starting with something called an in-service rollover.
What’s an In-Service Rollover?
Once you turn 59½, many employer-sponsored retirement plans (like 401(k)s) allow you to roll over some or all of your balance into an IRA or another qualified account. No penalties. No quitting required.
Why would you do this? Your 401(k) is great for growing wealth, but it’s often not built for retirement income distribution. Most 401(k)s offer limited investment options and don’t include tools for managing income, taxes, or risk once you stop working.
An in-service rollover lets you keep contributing to your 401(k), while also starting to prepare part of your savings for the income phase.
The Problem: Retirees Underspend
Research shows many retirees don’t spend nearly enough of their savings—not because they don’t have it, but because they’re afraid to run out. According to a 2024 study by Blanchett and Finke, retirees often draw down just half of what’s considered sustainable.
Why? Because without a clear income strategy, fear replaces freedom.
A Better Approach: “Prepare for Landing”
Think of retirement planning like flying a plane: you don’t wait until you’re at the runway to start descending. At Lohr & Company, we help clients prepare for landing—shifting from accumulation to income thoughtfully and gradually.
With a well-timed rollover, you can:
Access a broader universe of investment and income products
Build a customized strategy aligned with your goals
Create a smoother, more confident retirement transition
And with our Four Buckets Retirement Income Strategy®, we help clients visualize how to organize their money for income, growth, liquidity, and legacy.
Is It Time for Your Rollover?
If you’re approaching 59½, this is your window to start shaping your retirement future—not just dreaming about it. The right tools and strategy now can make all the difference later.
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