How Do You Build a
Retirement Income Plan?
Turning retirement savings into income involves more than choosing where to invest. Learn about the different sources of retirement income and the factors worth considering as you plan for the years ahead.
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What Could Make Up Your
Retirement Income?
Retirement income may come from several different sources. Understanding how each source fits into your overall picture can help you think more clearly about how your retirement savings may be used.
Social Security
Social Security may provide an important source of retirement income. The timing of when benefits begin can affect the income you receive.
Retirement Savings
401(k)s, IRAs and other retirement accounts can become sources of income once you move from saving for retirement to using your savings.
Investments
Investment accounts may contribute to retirement income, while market performance and withdrawals can affect how long assets may last.
Other Income
Pensions, part-time work, rental income or other sources may also play a role depending on your individual circumstances.
Saving for Retirement Is One Thing.
Using It Is Another.
During your working years, the focus is often on building savings. Retirement introduces a different set of questions: how much income might you need, where should it come from, and how might your decisions affect your savings over time?
Build
Accumulate savings through retirement accounts, investments and other sources over your working years.
Plan
Consider your expected expenses, income sources, taxes, timing and other factors before deciding how to use your savings.
Use
Put your retirement resources to work as part of an income strategy designed around your individual circumstances.
Your financial priorities may shift from accumulating assets to managing income, expenses and the resources you've built.
Five Questions Worth
Considering
There isn't one retirement income approach that fits everyone. These questions can help you identify the areas that may deserve attention as you develop your own plan.
How much income might you need?
Start by looking at your expected retirement expenses, including essential costs and the lifestyle you want to maintain.
When will your income sources begin?
Social Security, pensions and other income sources may begin at different times. Timing can be an important part of your overall plan.
Which accounts will you use?
You may have several types of retirement and investment accounts. Understanding your available resources can help you consider how withdrawals fit into your broader strategy.
How could taxes affect your income?
Withdrawals from different types of accounts can have different tax considerations. Your tax situation is an important part of retirement income planning.
What could change over time?
Retirement rarely follows a perfectly predictable path. Expenses, markets, health care needs and other circumstances can change, making flexibility an important consideration.
A Retirement Income Plan
Starts With Questions.
Building a retirement income strategy can involve several moving parts. Looking at them together can provide a clearer picture of the decisions you may want to explore before and during retirement.
Know Your Numbers
Understand your expected expenses, available savings and potential sources of retirement income.
Understand Your Options
Learn how different income sources and financial strategies may fit into your overall retirement picture.
Consider the Risks
Think about factors such as market changes, inflation, taxes, longevity and unexpected expenses.
Review Over Time
Your circumstances can change after retirement. A plan may need to be reviewed as your income, expenses and priorities evolve.
The purpose of retirement income planning is to understand your resources, your priorities and the choices available to you.
Have Questions About
Your Retirement Income?
Every retirement situation is different. A conversation can be an opportunity to review your questions, discuss your circumstances, and explore the retirement income considerations that matter to you.
Bring Your Questions.
You don't need to have all the answers before beginning the conversation.
Retirement Income Planning