Explore Retirement Income Planning Options for Your Retirement
Planning for retirement raises a practical question: how will you pay yourself after your regular paycheck ends? Annuities are insurance contracts that can provide income for a set period or, with certain options, for life. The right approach depends on your other income sources, when you need payments to begin, and how much of your savings you want to keep accessible.
How Retirement Income Planning May Fit Your Retirement Plan
Predictable Retirement Income
Explore annuity options that can provide scheduled payments to help over retirement expenses. Payment amounts and duration depend on the contract you choose.
Manage Market Risk
Compare how fixed, indexed, and variable annuities respond to market changes, Their risks, protections, and growth potential offer.
Balance Growth and Stability
Consider whether an annuity can compliment your other retirement savings while leaving enough money available for near term needs.
Income That Can Last for Life
Certain annuity payout options offer payments for as long as you live, subject to the insurer's claims paying ability and your contract terms.
Questions Education and Resources
Retirement income planning is the process of creating a strategy to turn your retirement savings, Social Security benefits, pensions, annuities, investments, and other assets into income throughout retirement. A retirement income plan considers your expected expenses, taxes, market risk, inflation, healthcare costs, and longevity.
Creating sustainable retirement income often involves coordinating multiple income sources rather than relying on a single account. These may include Social Security, pensions, retirement accounts, annuities, investments, and other assets. A retirement income strategy can help determine when and how to use these resources throughout retirement.
The amount of retirement income you need depends on your lifestyle, housing expenses, healthcare costs, taxes, debt, travel plans, inflation, and other financial obligations. Retirement income planning can help estimate future expenses and determine how your available income sources may support them.
A retirement withdrawal strategy determines how and when money is taken from retirement accounts and other assets. The order and timing of withdrawals can affect taxes, investment longevity, and the amount of money available later in retirement.
Market risk cannot be eliminated entirely, but a retirement income strategy can help determine how much of your retirement assets should remain exposed to market fluctuations and whether other income-producing strategies may be appropriate for your financial situation.
Retirement income can come from several sources, including Social Security benefits, pensions, 401(k)s, IRAs, annuities, investment income, savings, and other assets. Coordinating these sources can be an important part of building a comprehensive retirement income plan.
Retirement income planning can begin several years before retirement. Starting early provides more time to evaluate savings, Social Security claiming strategies, expected expenses, taxes, investment risk, and potential income gaps before you stop working.
Social Security can be an important source of retirement income. The age at which you claim benefits, whether you continue working, and your other income sources can affect how Social Security fits into your overall retirement income strategy.
A retirement income plan can account for expenses that may increase over time, including healthcare and everyday living costs. Planning for inflation and potential healthcare expenses can help provide a more realistic picture of your long-term retirement income needs.
Longevity is an important consideration in retirement income planning. A strategy can evaluate how your savings and income sources may need to support you over a longer retirement and identify potential income gaps.
Annuities may be one component of a retirement income strategy for some individuals. Certain annuities are designed to provide predictable income, but their features, costs, restrictions, and suitability vary and should be evaluated based on an individual's financial circumstances.
Richard Aguirre helps pre-retirees and retirees evaluate their retirement income sources and develop personalized strategies addressing income needs, withdrawal planning, market risk, Social Security, longevity, and other retirement considerations.
