If I need my money to last and last
The big question here is: will your retirement income sources like Social Security or a pension cover your fixed retirement expenses? IRAs and 401(k)s can help but another way to help ensure that you can pay a certain level of fixed living expenses like a mortgage in later retirement is to convert a portion of your assets into an income annuity.

Learn how different types of annuities can help you plan for things like inflation, as well as other variables that can influence your income and expenses.

An income annuity is not meant to replace retirement resources but to supplement them, as well as being a source of income you cannot outlive. So you use less of your retirement savings to achieve your goals and help cover the risk of running out of income later.

You can purchase a fixed income annuity, which will provide you with the same amount at every payment, or a variable income annuity where the amount you receive will fluctuate with the market experience of your investment choices.

What do I do with all the money I'm entitled to?
If you’re lucky enough to be leaving the workplace with a company pension—or Defined Benefit plan—it’s important to understand the different ways in which you may be able to receive distributions. MetLife’s years of benefits expertise can help you understand the options.  For example, in some plans you may have the choice of receiving payments over your lifetime, or receiving a one-time “lump sum” payment.  If you choose to receive payments over your lifetime, you may also be able to request to receive reduced payments in exchange for having the payments cover both your lifetime and the lifetime of your spouse, whoever lives longer.

Many people who have the choice choose the lump sum and are often tempted to spend at least part of their distribution. It’s important to understand that when you cash out your retirement plan, you can lose almost half of your balance to income taxes.

Instead of spending your distribution, consider directly transferring the money into a Rollover IRA. If you do this, you can avoid current taxation and penalties and your money can continue to grow tax-deferred. What’s more, you can name a beneficiary on your IRA and pass it on to your loved ones upon your death.

Keep in mind that, by taking a lump sum distribution, you would also lose the benefit of a guaranteed lifetime income stream that you (and possibly your spouse) would receive, and that your pension would provide.  In other words, by taking the lump sum and going it alone, you are responsible for making all the monetary decisions with your distribution, and still have the risk of outliving your income. 

Decisions regarding pension plans are complex, but a MetLife representative can help you sort it all out.

When should I begin taking Social Security?
Just because you can begin receiving Social Security benefits at age 62 doesn't mean you should. That's because your Full Retirement Age is between 65 and 67, depending on when you were born, and taking benefits before then permanently reduces the amount you will receive each year.

On the other hand, you can increase your annual Social Security income by opting to start receiving your benefits at a later date—even past your Full Retirement Age, up to age 70. In fact, the longer you wait, the higher your payments will be—for the rest of your life.

However, depending on your personal circumstances and things such as your life expectancy, a larger monthly benefit isn't always worth the wait.  A MetLife Representative can help you figure out a strategy that works for you. Speak with a MetLife Representative.

Read more about your options for receiving Social Security benefits.

How important are my Required Minimum Distributions?
Once you reach age 70½, the government will require that you begin taking distributions from your traditional IRAs and qualified retirement plans. There’s a minimum that must be withdrawn each year, and if you fail to withdraw that minimum, you face a 50% penalty on monies that were required to be withdrawn but were not.

Consolidating your retirement assets can make it easier for you to manage your distributions. We can help you understand these complex rules and help you organize your assets.

Read more about Required Minimum Distributions.

Keep in mind that once you withdraw the money, that money stops working for you, unless you invest it elsewhere. MetLife Bank’s savings products offer consistently competitive interest rates and could help you continue your savings with the security of FDIC insurance.

Learn more about MetLife Bank savings accounts:

• CDs
• High-Yield Savings Accounts
• Money Market Deposit Accounts

Living longer is more and more likely.
As we live longer in retirement, there’s always a chance of outliving our retirement savings. Income annuities can help protect against this by providing you with income later in life, and one that you can’t outlive.  

Why not pursue a new career?
A part-time job can put a little extra cash in your pocket and may allow you to withdraw less from your retirement savings. It can also be a great social outlet that still gives you time to spend with your family and friends and enjoy the many rewards retirement brings.