Your Retirement Reality
Make the most of it.
We get it. Retirement means something different to everyone and requires more planning than it did for our parents. Let’s figure out what you’ll be doing in your second-half and find a way to make it a reality.
What does your next chapter look like when every day feels like Saturday?
Let’s think about the only retirement that matters – yours.
Choose the answers that best fit you.
There are a lot of affordable locations for retirees that can help you to maintain your lifestyle.
Are you getting a better sense of how your retirement is as unique as you are?
Keep reading to learn more.
Whatever your vision, income is the common element to a confident future.
The secret to confidenceFootnote*
- Living within your means
- Planning for income replacement in retirement
- Owning solutions that provide guaranteed income
- Working with a financial professional
How can you build income in retirement?
In our working lives, we know where our money is coming from. In later years, it’s not as simple. If you’re like most and not completely prepared, don’t fret. With the right plan in place, you can build a stream of income that can last for your full retirement.
Sources of guaranteed income
Social SecurityA federal program that provides benefits to the retired, as well as those who are unemployed or disabled.
PensionsAn employer-paid retirement account with a set payout based on salary and years of service.
Bonds, CDsA debt security issued by a government or corporation. Generally considered to be lower risk. An insured bank deposit made for a specific period of time.
AnnuitiesFootnote**Contracts where an insurance company promises to make payments to an annuitant over a specified period of time or for life.
Whole life insuranceFootnote***Life insurance that pays a benefit on the death of the insured and also accumulates a cash value.
Sources of non-guaranteed income
Bank and investment accountsAccounts held at a financial facility for the purpose of long-term investments for capital preservation, growth, fixed income or for personal money management.
Individual retirement accounts (IRA)A type of investment or savings account that comes with tax benefits to help save for retirement.
Health savings accounts (HSA)A savings account used in conjunction with a high-deductible health insurance policy that allows tax-free saving against medical expenses.
Employer-sponsored 401(k), 457(b), 403(b)Retirement accounts sponsored by employers which allow employees to save and invest with pre-tax dollars until withdrawal. 457s are specific to government employees. 403s are specific to public school employees and employees of tax-exempt organizations.
DO YOU KNOW THE FORCES THAT CAN PUT YOUR
SAVINGS AT RISK?
A health event, inflation, or market fluctuations can impact your retirement savings. A steady source of monthly guaranteed income can help you from running out of money.
RISKS IN RETIREMENT
Prices go up, which can eat away at your purchasing power over a decades-long retirement.
If the market moves down too much, you may need more time to recover. Diversifying can help protect your future you.
SEQUENCE OF RETURNS
Finishing with confidence is just as important as beginning with confidence. The sequence of positive and negative annual returns, when you’re withdrawing and not adding, may impact how long your savings will last.
What will you have available to spend? Your income in retirement may not meet your vision. This is the income gap risk.
OUTLIVING YOUR SAVINGS
People are living longer and longer (and longer!). Even if you save and invest well, you can run out of cash in retirement without the proper plans in place.
Cheers to Your Future!
As you discover more about your retirement reality, there are resources to empower you along the way.
Make your future a reality
Speak with your financial professional about planning for your retirement.
You have a vision.
Now, make it a reality.
Graphic: Guaranteed income
Graphic: A chart showing over 30 years of retirement, guaranteed income staying a consistent straight line and savings line changing and ultimately declining over time.