Mike here — welcome to the first post of Life After 59½.
About a month ago, I retired from my IT career. Not at sixty. Not at sixty-five. At fifty-nine and a half. If you already know what that number means, you are aware of it’s significance. If you don’t, that’s exactly what this post is for.
A little about me
I was a network technician and engineer for almost exactly 40 years, my wife and I have been married for almost 33 years, we have 9 kids(yes, one wife and no multiples). My wife and I live in Virginia with the kids still at home, 2 dogs and a few cows.
I looked for writing similar to this when I was planning my own retirement, thought it was an interesting topic, and decided to write about my own situation, money and everything else, posted as we actually live it.
So what does 59½ actually mean?
Here’s the short version:
At 59½, the IRS lets you start withdrawing from 401(k)s and traditional IRAs without the 10% early withdrawal penalty. Before that age, pulling money out usually costs you that penalty on top of regular income tax. After 59½, the penalty goes away — though you still owe ordinary income tax on traditional account withdrawals.
That doesn’t mean you have to start withdrawing at 59½. It just means the penalty is no longer standing in your way if you choose to.
It’s also worth separating this from a few other numbers that get mixed up:
• 59½ — penalty-free access to retirement accounts
• 62 — earliest age to claim Social Security (at a reduced benefit)
• 65 — Medicare eligibility
• Full Retirement Age (66–67, depending on birth year) — when you get full, unreduced Social Security
They’re easy to blur together, but they trigger different things, and none of them automatically line up with when you actually stop working.
(I’m not a financial advisor or accountant, and this isn’t professional advice — just my own experience and what I learned along the way. If you’re making decisions around any of these ages, it’s worth running your specifics by an advisor or tax professional.)
Why I chose this timing
I would love to say that through careful planning over many years retiring at 59.5 was completely my idea, however, that isn’t the case. I didn’t choose that specific age entirely on my own. There were several factors involved that contributed to the decision to retire: I was not being offered an extension on my 1099 contract position, burn out after doing the same type of work for 40 years, the unnecessary and unproductive daily meetings, the painful corporate culture, and the constant feeling of being tied to the clock.
As time went on, we started to look at our retirement savings, potential portfolio growth, taxes, future spending, income possibilities in other fields, and life expectancy. We thought about it for a while, and ultimately, my wife and I decided that the time was right.
It was very much like a switch was flipped in my brain and suddenly most of the anxiety disappeared and possibilities not considered previously were suddenly within reach. It was a feeling of freedom that I hadn’t felt in a very long time.
The most important realization was the most blatantly obvious one, that none of us know how much time we have left to live. As I am writing this, I am thinking back to something my wife said during a previous life decision – “Mike, we’re running out of years”. That statement is even more powerful here.
What this newsletter will be
This won’t be a polished “10 steps to retire early” guide. It’s going to be both money and not-money: budgeting, healthcare gaps before Medicare, Social Security timing — but also the identity questions, the quiet, the relationships, and the stuff nobody mentions on the way out the door.
Life After 59½ posts weekly. If this hit home, forward it to someone else thinking about taking the leap.