Answering your questions and concerns about making savings last in retirement.
Be prepared for the decisions you need to make as you approach retirement, including future sources of retirement income, making sure your money will last long enough, and when will be the right time to draw Social Security.
Learn about important choices that continue to affect you in retirement, including paying taxes, plan distribution options, and whether or not you will need or can afford to work after you retire.
In the last 50 years, retirement has become less of a date certain event and more of an extended period that may last for 20–30 years. So, careful planning and decision making are necessary. You may need to consider working longer than you initially intended to if your retirement savings aren’t what you expected.
Extending your working life just a few more years may enable you to achieve your goals and retire comfortably. This gap analysis tool takes complicated issues like projected Social Security benefits and earnings assumptions on savings, and turns them into language and math that are easy to understand.
Shortfall or surplus? Making the transition from work to retirement can be a major life change filled with new possibilities and important decisions. Find out if you have enough saved to retire and how long your savings may last during retirement.
Waiting a few years to claim Social Security can increase your monthly benefit. Calculate a rough estimate and the advantages of delaying your Social Security benefit. This tool shows how your monthly benefit changes depending on the age at which you claim.
When you start taking distributions, you’ll begin turning the money in your employer-sponsored retirement savings plan into income. When to take distributions from your plan is up to you, but required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 ½.
Learn the steps you need to take to create an income strategy that can last.
You may be offered a choice between a lump sum payment, installment distributions, and a guaranteed stream of income — sometimes known as an annuity. For individuals participating in a workplace retirement plan, the decision of your method of distribution is typically — but not always — made at the point of retirement.
If presented with a choice between a lump sum payment, installment distributions, an annuity, or some combination of the three, you have a number of important considerations. How will you utilize any retirement savings you have amassed in an employer-sponsored retirement plan, and/or how will you manage your accrued defined benefit pension benefits, if you participate in this type of pension plan? Determining how your retirement savings or pension benefits should best be distributed can be one of the most important and impactful decisions you can make regarding your retirement income security.
Taxes don’t go away with retirement. Income taxes assessed on retirement plan distributions are generally taxed as ordinary income and may even be your most expensive obligation in retirement. Ordinary federal income taxes generally apply to taxable distributions. State income taxes may also apply. Always consult your tax advisor or investment professional about the income tax consequences of any withdrawals.
With life full of uncertainties and our needs, circumstances, and personal priorities changing, ongoing decision making, assessment, and updating plans are essential throughout retirement. It’s a good idea to revisit the tasks and activities involved in preparing for retirement to determine if anything needs to be changed, updated, or revised in order to ensure you’re making the best decisions for you.
Find out how working after receiving retirement benefits can lead to increases or decreases in benefits.
The information contained within this website is intended to be informational in nature and should not be considered a recommendation or individualized advice to a specific individual. Links to third party websites are provided for your convenience and information only. The content in any linked websites is not under our control and we are not responsible for it.
Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their own qualified legal, tax and accounting advisors as appropriate.