Understand Your Retirement Options
Retirement income can come from several sources, each with different features, risks and tax considerations. Explore annuities, 401(k) rollovers, IRA accounts and pensions to understand how each may fit into your retirement strategy.
What Is Retirement Income Planning?
Retirement income planning is the process of organizing your savings, investments, retirement accounts and income sources so they can support your needs throughout retirement.
A retirement strategy may include Social Security, pensions, 401(k)s, IRAs, annuities, investments and other sources of income. The goal is to understand how these pieces can work together to provide income while managing taxes, withdrawals, market risk and longevity.
What Can Affect Your Retirement Income?
Longevity
Your retirement savings may need to provide income for 20, 30 or more years.
Inflation
Rising prices can reduce the purchasing power of your retirement income over time.
Market Risk
Investment losses can affect how much income your portfolio can support.
Taxes
Different retirement income sources can be taxed in different ways.
Withdrawal Rate
How much you withdraw each year can affect how long your savings may last.
Common Retirement Planning Questions
When should I start planning for retirement?
The earlier you start, the more time you have to build savings and adjust your strategy. But retirement planning can still be useful at any age.
How much income will I need in retirement?
That depends on your lifestyle, housing costs, healthcare needs, debt, taxes and other expenses.
Should I use an annuity in retirement?
An annuity can provide predictable income, but whether it fits depends on your savings, income needs, risk tolerance and other retirement resources.
What happens to my 401(k) when I retire?
You may be able to leave it with your former employer, roll it into an IRA, move it to another eligible plan or begin taking withdrawals.
What is the difference between a 401(k) and an IRA?
A 401(k) is generally employer-sponsored, while an IRA is opened individually and may offer different investment and withdrawal options.
How does Social Security fit into retirement income?
Social Security can provide a base level of retirement income, while savings, pensions, annuities and investments may provide additional income.