Can I Afford to Retire?

If you’ve contributed consistently to your retirement plan, you may feel like you’re on the path to enjoying a financially-sound retirement. But how do you really know how much money you’ll need to support the retirement lifestyle you desire?

Do the math

Start by using the Account Balance Potential tool to take a hypothetical look at how much an account might grow by retirement. An investor can use this number as a starting point for their plan.

The next step would be to write down their anticipated income and expenses in retirement. An investor can estimate any gaps they may have in their anticipated income that they may need to plan for now.

Here are a few other tools to help get started:

• Use the Interactive Retirement Planner^SM to set retirement goals, and use the results to track the progress.
• Talk with your Account Executive about your plan and possible ways to improve it

Tips and considerations

• Plan for taxes in advance* – taking a lump sum withdrawal when you reach retirement may mean that you’ll pay more in taxes. You may want to consider systematic withdrawals, to potentially pay less in taxes, and to allow your remaining money to stay invested and possibly grow.
• Plan for the retirement risks – The expenses in your retirement budget should also account for the financial risks associated with retirement, such as outliving your money, healthcare costs and inflation. Increasing your contributions now may be a good way to counter some of these risks.
• Think about your retirement lifestyle – Though it may sound silly, imagining what you want your years in retirement to be like may help you plan for the amount of income you’ll need. Do you plan to travel and enjoy your favorite hobbies? Or, do you hope to live a low-key life, enjoying friends and family? Think about it and develop your plan.
• Take advantage of catch-up contributions – If you’re 50 or older, or are within three years of your plan’s normal retirement age, you can take advantage of catch-up contributions, which allow you to invest even more in your plan to make up for years you may not have contributed enough.

Get the help you need

Talk with the HELPLINE or your Account Executive to develop an investment plan for your retirement goals.

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* Information provided by Account Executives is for educational purposes only and not intended as investment advice. Please contact your tax advisor for more information. Investing involves market risk, including possible loss of the money invested.