Retirement

Planning for Retirement

It is never too early to start planning, saving and investing for your retirement. During your working years, allocate a portion of your paycheck to go directly into a separate savings account. As it accumulates, move it to more long-term investments consistent with your timeframe. When possible, you should also take advantage of employer sponsored 401(k) or other retirement plans.

Comfortable & Successful Retirement

The key to a comfortable and successful retirement is not outliving the money you’ve saved by creating a budget. Be careful with credit cards and new debt. Claim that senior citizen discount wherever it’s offered and read the fine print about taxes on all your investments.

View Making Critical Retirement Choices, an interactive module in our Financial Wellness Center, to learn how to be more financially prepared in the years ahead.

When Should You Retire?

After a lifetime of work, this can be a complicated and personal decision. Studies show most people make this decision based on age rather than having enough savings to sustain them through retirement. However, If you’ve done your preparation and homework, you can be confident you’ll make the right decision. You can use this calculator to help you determine whether you are saving enough to cover your expenses in retirement.

Be Strategic About Social Security

Social Security is available to you at age 62, but it’s great if you can wait. Take it early, and you get 25% less than if you wait until full retirement age of 66 at which time you’re entitled to 100%. If you can wait until 70, you get 35% more. People often coordinate Social Security benefits with spouses who are also eligible. Maybe one of you takes benefits early, and the other waits. Visit ssa.gov for more information.

Tapping Your Retirement Plans

You may have a defined benefit pension plan from a former employer, a 401(k) and IRAs. It’s your choice when to withdraw funds from these accounts. If you want to begin tapping them or want to roll them over somewhere else, make sure you understand all your options and the ramifications of every decision. Distributions from IRAs and 401(k) plans are required as you reach age 70½.