Planning for Your Income to Last
With life expectancies continuously increasing, you may be retired for longer than think. The amount of time you spend in retirement may even exceed the amount of time that you worked. A retirement income plan is extremely important because all of us will face the challenge of planning for income to last throughout our entire lives.
Individuals will be responsible for their retirement income. On average, 38% of retirement income with come from outside sources. These outside sources include Social Security and a pension. 62% of retirement income will come from your own sources. These may include investments, earned income, and other sources.
Along with changes with Social Security and pensions, retirement planning now is different from the past in a few key areas. These include different expectations of life in retirement, higher health costs, and longer average life spans.
The five key risks that you may run into while planning for retirement are:
2. Health care expenses
3. Asset allocation
5. Excess withdrawal
Click on the PDF below to read more about Retirement Income Planning and to see how you can approach these risks!