Living in Retirement
Now that you’re retired, you may be wondering how and when to withdraw money, where to keep your funds, and even how to keep your income lasting as long as possible. You’ve been planning for this moment for years and we’re here to help you understand what you may need to do next. Our Learning Center offers articles and tools to help you better understand your options, giving you confidence that you’re making the decisions that best fit your needs and wants.
Some things you may want to consider now that you are retired:
Keeping your funds with us – Your money can stay in MSRP. Retiring employees may think they need to move money out of MSRP. By continuing as a MSRP participant, you might avoid costs like front-load fees and commissions that sometimes come with new accounts. Do be aware that you’ll still have fees associated with your accounts. You also may maintain more flexibility in taking future withdrawals by leaving your money in your account rather than rolling it out.
Learn about the Possible Benefits of Staying with the Plan, including how to continue taking advantage of tax-deferred growth and potentially lower fees.
Meet with a Personal Retirement Consultant - They can help you see the big picture of your retirement income and help by giving you information so you can manage your investments and payouts in retirement.
Consolidating funds – Have you left a trail of active retirement accounts with former employers? Perhaps you have more than one retirement plan in a few different places. You may want to consider consolidating your accounts now that you are retired. It will give you the convenience of having one place to manage our accounts and one place to draw your income from. Also consider rolling any Traditional IRAs in to your plans.
Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59 ½. Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your legal or tax advisor for such advice.
Preparing for payouts – You might be surprised at how many choices you have when it comes to receiving income in retirement. Whether it’s income you receive in a lump sum, partial lump sum, systematic withdrawal, annuitization or rollover, we have information to help you better understand each of these options. Wihdrawals are taxable income to you in the year the payments are made.
- Read more about your Distribution Options and How to Start Receiving Income
- Learn more about withdrawal options in Transitioning from Investing to Spending
- Get more info on How to Take RMDs, or Required Minimum Distributions when you reach age 70½
Reviewing your Social Security coverage – The Social Security Administration website offers their Retirement Estimator tool to help gauge your retirement coverage, and create “what if” scenarios. Some law enforcement workers have a pension for work that’s not covered by Social Security, and their benefits are adjusted based on the Windfall Elimination Provision (WEP). You can estimate your benefit using the WEP version of the Retirement Estimator tool.
Reviewing medical coverage – Medicaid, Medicare, and individual insurance programs can have an impact on what expenses are covered and those that you’ll have to pay. Taking time to review your medical coverage will give you added insight into potential expenses, including long-term care. You can look into the costs of long-term health care by going to non-profit or government sites such as the National Clearinghouse for Long-Term Care Information. For information on your health benefits through the State of Maryland, go to Employee/Retiree Benefits at Department of Budget and Management.
Making an in-retirement checklist – Now is the time where you may want to think about creating an in-retirement plan that considers:
- What you'll do with your time to be happy and fulfilled.
- What steps you'll take to stay active and healthy.
- Where you'll live in retirement and how this decision will affect your current and future living expenses.
- How you'll use your accumulated assets to meet your income needs throughout your retirement years.
Here are some additional articles or videos to help educate you on options:
- The Cost of inflation - There are things that are out of your control. Learn more about how inflation may affect your savings in the future.
- Social Security Uncertainty – Recent talk of reform may impact your investments…learn more.
- Living Longer in Retirement – Many public sector employees retire early and may need to live 30 years or more on their savings.
- Market Risk – The market is ever-changing. Learn how to weather the storm.
Get the help you need
We’re here to help you understand what steps are available to you. If you have questions or just want to talk retirement planning, call a Team MSRP member today. We’re happy to help you.