Planning for Income in Retirement
As retirement approaches, it’s important to develop a plan for making your money last. Many retirees count on income from sources like retirement investments, pensions and Social Security to support them through the retirement years. The first step towards creating your retirement plan is understanding how best to use these retirement income sources.
You’re close to retirement. You’ve wisely and consistently contributed to your retirement plan over the years and you’re now ready to enjoy the money that has potentially grown for you. There are many ways to receive your retirement income. Review your options, and talk with a Team MSRP Retirement Specialist about which option might be right for you and the lifestyle you’d like to maintain.
You don’t have to start taking distributions at the beginning of your retirement. If you’re in a good position and can continue to leave your money invested, you can let it stay put in your deferred comp plan. Your money can potentially continue to grow until you’re required to take a distribution at age 70½.
Your pension benefit is typically calculated based on how many years you’ve worked, your age at retirement, and your final salary. If you’re eligible to receive pension benefits, contact your human resources or benefits department to ask about your accrued and projected pension.
- Your accrued pension is the annual amount you’d receive at your plan’s normal retirement age if you left your job today
- Your projected pension is an estimate of the amount you’d receive if you stay with your current job, with your current pay until your plan’s normal retirement age
To find out how much you might receive from Social Security, you can use the Social Security Online Retirement Estimator.
Get the help you need
Contact us if you have questions about receiving income in retirement. Remember, Team MSRP members do not offer investment, tax or legal advice. You should consult your own counsel before making decisions about MSRP participation.