Retirement may bring changes to both your lifestyle and your finances. It is important to have a plan that takes into account certain risks which may impact your retirement security. For employers, defined contribution retirement plans represent freedom from financial volatility, traditional pension risk, market volatility, and long-term financial uncertainty; however, they also impose new risks and responsibilities on the employer. For employees, defined contributions offer individual control, greater flexibility, and, in an ideal world, access to institutionally priced investments. Secure the future of your finance even after you retire.
Put Your Money to Work:
As you approach the time when you’ll trade your paycheck for retirement, you’ll begin relying on your hard-earned retirement income sources to help provide an income stream that will see you through your retirement years.
No lifetime income sources?
If you don’t expect to receive Social Security benefits and pension plan payments, or if these amounts won’t cover your essential living expenses, consider converting a portion of your investments into an annuity. Guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees apply to minimum income from an annuity; therefore, they do guarantee an investment return or the safety of the underlying funds.
Diversify your retirement income sources
Because each retirement income category represents a different type of income, and mitigates different retirement risks, diversifying your retirement income across all three can help you generate income in retirement that may last a lifetime.