You spend decades saving and investing for the future you want — and one day, that future arrives. You deserve to put your feet up and enjoy life, but before you do, make sure you have a solid plan for making the most of your retirement savings. Here are a few suggestions:
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- Understand how your retirement income sources work together – For many people, retirement income can come from multiple sources, including pension benefits, Social Security benefits, personal savings and their employer-sponsored retirement plan, to name a few. Factors such as when you claim Social Security benefits and deferred taxes you may owe on your retirement distributions may affect the level of income you can expect. Also, it may be to your advantage to rely more on some sources and less on others at different times to minimize your tax obligation.
The bottom line: It’s good to have a comprehensive plan for using your different retirement income sources. Meet with your Retirement Plan Advisor for a Retirement Readiness Review to discuss your specific financial situation and create a plan.1 - Keep your good habits – Did you make a conscious effort to live below your means so you could save for your future retirement? It’s a smart move to keep that habit even after you leave the workplace. Some people may find their spending spikes in the early years of their retirement as they enjoy their newfound free time. Remember, though, your retirement could last for decades, and you’ll need to continue to budget based on your expected income for an extended period.
- Consider staying in the plan2 – The same plan that helped you save and invest during your working years can continue to be a valuable resource long after you leave the workplace. By staying in the plan, you can enjoy the same great website planning features and tools, potentially lower fees, flexible payout options, and Retirement Plan Advisor guidance throughout retirement.
- Understand how your retirement income sources work together – For many people, retirement income can come from multiple sources, including pension benefits, Social Security benefits, personal savings and their employer-sponsored retirement plan, to name a few. Factors such as when you claim Social Security benefits and deferred taxes you may owe on your retirement distributions may affect the level of income you can expect. Also, it may be to your advantage to rely more on some sources and less on others at different times to minimize your tax obligation.
If your retirement is in sight, congratulations! Don’t forget to start planning now for using the assets you worked hard to accumulate for retirement. If you have any questions, contact our on-site representative, John “Chip” Richardson by calling (804) 501-5233 or emailing [email protected].
1 The Retirement Readiness Review, provided by an Empower representative, may provide investment counseling and/or recommendations.
2 Plan provisions may provide for the automatic distribution of small balances.