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Retirement Plan Services
As you transition from retirement saving to living in retirement, consider how to structure your income and manage your portfolio to prepare for a longer life.
Planning your retirement income may seem daunting, but when you are preparing for the transition from saving for retirement to living in retirement the best strategy may simply be to invest sensibly, save, and delay retirement if possible. That’s the conventional wisdom about retirement planning, but you should also consider what your income needs will be in retirement. Here are some tips to move your thinking from saving for to living in retirement:
Instead of focusing on a target number, think about income:
You may start off your retirement with certain needs, but those needs inevitably will change. Make sure you evaluate your withdrawal rate with your financial professional at least annually to ensure that you are not drawing too much or too little and are taking life changes into account.
Deciding when to take Social Security is an individual decision. Conventional wisdom suggests taking Social Security as late as possible, but that may not be the best decision for you, depending on your health, marital, and financial status.
Build your strategies in time to make necessary changes to your portfolio before you retire. That way, you are ready and will not be making unnecessary shifts during retirement. In general, a retirement portfolio is less about growth and more about income.
Life expectancy is on the rise, thanks to advances in health care. This means your money will have to last longer. Consider long-term income vehicles, such as fixed immediate annuities, that provide a steady stream of income for life.