Retirement Planning

Retirement: The way it was

  • Collected a pension from the company where you worked for 40 years
  • Received a check from Social Security to supplement monthly income
  • Former employer and Medicare covered costs of health care

Retirement: The way it is (due to advances in health care, retirees are living longer)

  • Drawing monthly income from IRAs and 401(k) plans (which replaced pension plans and do not guarantee a stream of income)
  • Many work part time as long as they are able to supplement income
  • Health care costs are covered in part by Medicare and former employer, the rest comes out of pocket

*** Current Retirement Risks ***

Excessive Withdrawl          Inflation          Lack of Diversification          Longevity

45 years old—Still in workforce
- Are you saving enough?
- Job changes have left you with several old 401(k)s
- Accounts haven't been reviewed for objectives/market fluctuations

55 years old—At end of working career
- Can you maintain your ideal standard of living?
- Making income last for the rest of life
- Take care of your spouse should you die first

65 years old—Retired, possibly alone
- Maintaining a current standard of living
- Make sure income will last
- Take care of your beneficiaries