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Retirement Income: The Transition Into Retirement
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 | Are You Ready to Retire? The question is actually more complicated than it first appears, because it demands consideration on two levels. First, there's the emotional component. Second, there's the financial component. | | More Details |
 | Timing is Everything When it comes to transitioning into retirement, timing really is
everything. The age at which you retire can have an enormous impact on your
overall retirement income situation, so you'll want to make sure you've
considered your decision from every angle. In fact, you may find that deciding
when to retire is actually the product of a series of smaller decisions and
calculations.
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 | How Much Annual Retirement Income Will You Need?
How much annual income will you need in retirement? If you aren't able to answer
this question, you're not ready to make a decision about retiring. And, if it's
been more than a year since you've thought about it, it's time to revisit your calculations.
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 | Do You Plan to Work in Retirement? Many employees nearing retirement plan to work for at least some
period of time during their retirement years. The obvious advantage of working during
retirement is that you'll be earning money and relying less on your retirement
savings — leaving more to potentially grow for the future and helping your savings
last longer.
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 | Retirement Income: The "Three-Legged Stool"
Traditionally, retirement income has been described as a "three-legged stool"
comprised of Social Security, traditional employer pension income, and individual
savings and investments. With fewer and fewer individuals covered by traditional
employer pensions, though, the analogy doesn't really hold up well today.
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 | Asset Allocation
Your asset allocation strategy in retirement will probably be different than the one
you used when saving for retirement. During your accumulation years, your asset
allocation decisions may have been focused primarily on long-term growth. But as
you transition into retirement, your priorities for and demands on your portfolio
are likely to be different. | | More Details |
 | Making Portfolio Withdrawals When planning for retirement income, you'll need to determine your portfolio withdrawal
rate, decide which retirement accounts to tap first, and consider the impact of
required minimum distributions.
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 | Investment Considerations A well-thought-out asset allocation in retirement is essential. But consideration
must also be given to the specific investments that you choose. While it's impossible to discuss
every option available, it's worth mentioning investment choices that might have
a place in the income-producing portion of your overall investment strategy. | | More Details |
 | Health-Care Considerations At any age, health care is a priority. When you retire, however, you will probably focus more on health care than ever before. Staying healthy is your goal, and this can mean more visits to the doctor for preventive tests and routine checkups. There's also a chance that your health will decline as you grow older, increasing your need for costly prescription drugs or medical treatments. That's why having health insurance can be extremely important. | | More Details |
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IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. |
| Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024. |
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