In the past funding for our retirement came from three sources: a well-funded Social Security system, substantial corporate pensions with retiree health benefits, and a strong personal savings rate.
Unfortunately, times have changed dramatically. Now, the responsibility for providing and planning for retirement income has shifted away from government and pension plans to individuals. We now have a large number of employer-sponsored defined contribution plans (such as 401K, 403B, 457). These plans are excellent ways to save but we are only now witnessing the first wave of retirees who plan to live off this type of savings through retirement. To determine whether defined contribution plans will be adequate for your retirement planning, you may want to seek financial advisor help with James Holloway, Sr. and the team at Texas Financial and Retirement in Tyler, Tx.
When planning for your retirement, the crafting of a written retirement plan will outline your retirement income portfolio. The design of a plan for income during retirement has shifted from an accumulation mindset to a distribution mode. There are many variables involved in creating an income plan for today's retirees. Factor in the following when partnering with a financial planner to design your personal retirement income plan:
- Plan how long you will live in your retirement years
- Health care expenses will increase
- You'll need a housing plan (home values have dropped in some areas)
- Plan for long-term care
- Inflation may matter more in the future
- Transition your financial goals – combine growth opportunities with guarantees
- Decide when to begin receiving Social Security benefits
- Analyze the taxes that may be assessed on your retirement income
- Devise a distribution strategy for your retirement savings
Download a complimentary 6-page worksheet to help with Retirement income planning by submitting the form below: