Making sure your retirement years are financially secure takes consistent saving and realistic planning. Even if you start funding your retirement early, once you reach the home stretch that last 5-10 years of full-time work you’ll want to be especially proactive so you stay on track. Here is a list of some ways to prepare as your retirement date draws closer:
- Take advantage of catch-up contributions to fund your retirement accounts. Once you reach age 50, you may want to step up your retirement savings. The increase applies to both IRAs and employer-sponsored retirement plans.
- Check your Social Security account annually so you’ll know how much Social Security you can expect to receive each month. The Social Security Administration sends you an annual statement of your earnings and payout estimates, and you can also check them online at www.SSA.gov.
- Expecting a pension? You’ll want to check its status regularly, so if benefits change in the future, you’ll have time to make adjustments to your other savings.
- Consider buying Long-Term Care (LTC) insurance. LTC helps pay for the high costs associated with nursing home care, home health care, and assisted living facilities. LTC protects your retirement nest egg and other savings. Since LTC becomes more expensive as you get older and your health risks increase, you may want to lock in a policy sooner rather than later.
- Sign up for Medicare or Medicaid three months before you reach age 65. You can learn more about these programs at www.Medicare.gov.
- How long will your nest egg last? You'll want to be sure that you don’t spend your savings too fast. You can estimate your monthly withdrawal rate using our Retirement Income Calculator.
- Understand the required minimum distribution (RMD). Once you reach age 70½, you’ll be required to withdraw a minimum amount from your tax-deferred retirement accounts; Roth IRAs are exempt from RMD. Because the RMD is based on the amount of money in your accounts at the end of the year and your age, the RMD may change each year.
- Leave a legacy. It doesn’t take phenomenal wealth to leave a legacy to your loved ones or a charity. Legacy Master®, issued by Western-Southern Life Assurance Company, is a product that can help leverage your savings.
- Discuss your questions and plans with a licensed representative and get help making decisions.
Products for this Life Stage:*
Do you worry that you’ll outlive your savings? A Single-Premium Immediate Annuity (SPIA) can provide a guaranteed stream of income for life. Review this brief presentation about Retirement Income Solutions to learn how single-premium immediate annuities can boost your retirement income.
Additional Insight for Retirement:
To avoid penalties and taxes, it’s important to understand when you can and cannot access retirement funds. See our Key Benefit Ages section for details.
Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation.
*Products suggested for this Life Stage are not a specific recommendation or solicitation to purchase.