Our Retirement Planning Resources can help you make informed decisions about your financial security and future.
How to Plan for Retirement
No matter where you are in life, learning how to plan for retirement can help you prepare for the future. Even if retirement is decades away, starting early gives you more time to save, invest and work toward the retirement lifestyle you want.
Planning for retirement early can offer several benefits:
- More time for your money to grow: Starting early gives your retirement savings more time to benefit from compound growth. Over time, earnings can generate additional earnings, helping you build savings toward your retirement goals.
- More flexibility: With more time to save, you may be able to contribute smaller amounts each month and still work toward your goals. You may also choose to save more to build your retirement savings faster.
- Less financial stress: Preparing in advance can give you a clearer picture of your retirement goals, savings and future expenses. This can help you feel more prepared as retirement approaches.
If you are unsure where to start, consider speaking with a financial advisor. An advisor can help you set retirement savings goals, review your options and choose investments based on your needs and circumstances.
It is never too early to start preparing for retirement. Taking steps now can give you more time and flexibility to build savings and prepare for the future you want.
Learn the basics of when to retire, plans to help prepare you, retirement goals, and expenses to consider.
How Much Do I Need to Retire?
The uncertainty of not knowing how much you need for retirement can be stressful and overwhelming. The worries can pile up:
- What if I live longer than my savings can stretch?
- What if I face sudden, large healthcare bills?
- What if I don't have enough to cover my basic living expenses?
- What if I have to rely on my children or other family members for financial support?
These risks and concerns are valid, and it's understandable why so many people feel anxious about retirement. However, it's important to remember that you can take steps to reduce this uncertainty and improve your chances of a comfortable retirement.
Learn how much retirement money you’ll need to retire at your desired age.
How to Save for Retirement
Saving for retirement can help you prepare for the lifestyle and expenses you expect after you stop working. How much you need to save and the strategies you use will depend largely on your income, retirement goals and expected expenses.
Consider these strategies as you save for retirement:
- Start saving early: The sooner you begin, the more time your money has to grow. Even small, regular contributions can add up over time.
- Set realistic goals: Think about how much income you may need each month and how many years you expect to spend in retirement. Understanding these needs can help you set practical savings goals.
- Create a budget: Track your income and expenses to identify areas where you may be able to reduce spending and put more toward retirement.
- Automate your savings: Set up recurring contributions or transfers to your retirement account. Automating contributions can make saving a consistent part of your monthly routine.
Your retirement income may come from several sources, including Social Security, pension benefits and personal retirement savings. Medicare may also help cover certain health care costs during retirement. Considering these resources together can help you determine how much you may need to save.
Learn how to start saving for retirement, which retirement accounts may be right for you, and the benefits of starting early.
Retirement Savings Plans
Planning for retirement is central to long-term financial security. Today’s retirement plans offer distinct rules, tax benefits, and investment choices. Understanding how these features work together helps you prioritize contributions, capture employer matches, and build a resilient, goal-aligned nest egg.
IRA Basics
Individual retirement accounts (IRAs) offer several potential benefits that can help you save for retirement, diversify your retirement portfolio and assets, manage your tax situation, and even plan for wealth transfer.
- Saving for retirement: IRAs are one of the most popular ways to save for retirement because they offer several advantages over other savings options.
- Diversifying your retirement portfolio and assets: IRAs offer a wide range of investment options, so you can diversify your retirement portfolio and assets to reduce risk.
- Managing your tax situation: IRAs can help you manage your tax situation in retirement. For instance, withdrawing money from a traditional IRA before age 59½ may incur a 10% early withdrawal penalty tax. Exceptions may apply for reasons such as paying for qualified education or unreimbursed medical expenses.
- Planning for wealth transfer: IRAs can also be used to plan for wealth transfer. You can name a beneficiary for your IRA, and the beneficiary will receive the money in your IRA after you die.
If you are considering saving for retirement, be sure to consider the benefits of IRAs.
Learn more about how IRAs could benefit your retirement planning.
401(k) Basics
A 401(k) is a savings plan many employers in the United States offer. It is a tax-advantaged way to invest for the long term. 401(k) plans offer several other benefits as well:
- Employer Match: Many employers offer matching contributions, which means they will contribute a certain amount of money to your 401(k) plan for every dollar you contribute, up to a specific limit. This is essentially free money that can help you save even more for retirement.
- Investment options: 401(k) plans offer various investment options to diversify your retirement portfolio and reduce risk. You can invest in stocks, bonds, mutual funds, ETFs, and other investment products.
- Portability: Another benefit of 401(k) plans is that they are portable, meaning you can take them with you if you change jobs. This makes it easy to continue saving for retirement even if you make a career change.
If you are eligible to contribute to a 401(k) plan, take advantage of this opportunity.
Learn more about how a 401(k) can help you along your retirement journey.
403(b) Basics
A 403(b), sometimes called a tax-sheltered annuity (TSA), is a retirement savings plan designed specifically for employees of public schools, certain nonprofit organizations, and some ministries.
- Tax Advantages: Contributions are typically made pre-tax, lowering your annual taxable income.
- Employer Match: Some organizations offer matching contributions, free money that can dramatically boost your retirement savings.
- Investment Options: Various investment options allow you to create a diversified portfolio tailored to your risk tolerance, financial goals, and time horizon.
- Catch-Up Contributions: If you’re 50 or older, you can contribute more than the standard limit, accelerating your savings in the crucial years before retirement.
If you are eligible for a 403(b) plan, taking advantage of this opportunity is a good idea.
457(b) Basics
A 457(b) plan is an employer-sponsored retirement plan exclusively available to government employees and workers at certain tax-exempt organizations. Named after Section 457(b) of the Internal Revenue Code, it allows eligible employees to defer a portion of their salary on a pre-tax basis, reducing current taxable income while building retirement wealth.
Who Can Participate:
- Government employees: State/local workers, teachers, police, firefighters, municipal staff.
- Non-profit workers: University staff, hospital employees, religious organization workers, charitable foundation employees.
Key Features:
- Contribution options: Traditional pre-tax or Roth after-tax contributions (Roth only available for governmental plans).
- Tax-deferred growth: Investments grow without annual tax burden.
- No early withdrawal penalties: Unlike 401(k)s, you can access funds penalty-free upon separation from service.
- High contribution limits: $24,500 in 2026, plus catch-up contributions for older workers.
- Double-dipping potential: Can contribute to both 457(b) and 401(k)/403(b) simultaneously.
The 457(b) plan's advantage is penalty-free early access to funds, making it particularly valuable for government workers seeking flexible retirement savings with tax benefits.
Annuity Basics
Annuities are products that can provide you with a guaranteed income stream in retirement. They offer features that may help you achieve financial goals that other financial tools or savings options may not support.
- Lifetime income guarantees: One of the features of annuities is that they can provide you with a guaranteed income stream for life. This can be a valuable benefit, especially if you are concerned about outliving your savings.
- Additional tax deferrals: Annuities can also offer additional tax deferrals. With a traditional annuity, your contributions and earnings grow tax-deferred until you withdraw the money in retirement. With a Roth IRA, you pay taxes on your contributions now, but your earnings grow tax-free.
Other features: Annuities also offer several other features, such as:
- Death benefits: Annuities can provide death benefits to your beneficiaries if you die before withdrawing all the money in your annuity.
- Riders: Annuities can be customized with riders that add additional features, such as long-term care insurance or guaranteed income for a specific period of time.
- Flexibility: Annuities offer various withdrawal options, so you can choose the option that best meets your needs.
If you're unsure if an annuity is right for you, it could help to talk to a financial advisor. They can determine your needs and help you pick the right annuity.
Learn about what annuities are, the different types of annuities, and how they fit into your retirement plan.
Estate Planning 101
Estate planning can help you determine how your assets will be managed and distributed after your death. As you approach retirement, it can also help you organize your wishes and make important decisions about your estate.
Some potential benefits of estate planning include:
- Reduce potential estate taxes: Estate planning strategies may help reduce estate taxes that could apply to your estate after your death. For example, transferring certain assets to a trust or another estate planning vehicle may reduce the estate taxes your heirs could owe.
- Appoint trusted people to manage your estate: You can name people to handle specific responsibilities after your death. This may include an executor who carries out the instructions in your will and a trustee who manages any trusts you establish.
- Distribute assets according to your wishes: Estate planning allows you to specify how you want your assets distributed. This can be especially helpful if you have complex family circumstances or want certain assets to go to specific charities or organizations.
If you are approaching retirement, consider how estate planning fits into your preparations. Having your wishes documented can help your loved ones understand how you want your estate handled and how your assets should be distributed.
Learn more about estate planning, creating a will, establishing trusts, designating beneficiaries, and preparing for potential estate taxes.
Retirement Income Planning
As you get closer to retiring, planning how you'll turn your savings into income is an important step. You'll likely want to consider all your potential income sources to begin to build your retirement paycheck. Here are some common income sources to consider:
- Social Security: Social Security is a federal program that provides retirement benefits to Americans who have worked and paid Social Security taxes. You can start receiving Social Security benefits as early as age 62, but your benefits will be reduced if you start receiving them before age 67.
- Medicare: Medicare is a federal health insurance program for Americans 65 and older and people with specific disabilities. Medicare covers many medical services, including hospital stays, doctor visits, and prescription drugs.
- Employer-sponsored retirement plans: Many employers offer retirement plans, such as 401(k)s and 403(b)s. These plans allow you to save money from your paycheck on a pre-tax basis, which can help you save more for retirement.
- Individual retirement accounts (IRAs): IRAs are another way to save for retirement. You can contribute to an IRA even if you don't have an employer-sponsored retirement plan.
- Annuities: Annuities are insurance products that can provide you with a guaranteed income stream in retirement. Various annuities are available, so you can choose one that meets your needs.
- Investments: You can also invest your savings in various assets, such as stocks, bonds, and mutual funds. Investing can help your savings grow over time, but there is also the risk of losing money.
When planning your retirement income, it is important to consider all of your potential income sources. This will help you ensure you have enough money to retire comfortably.
Learn how to make your retirement account money last to live the lifestyle you’ll enjoy.
Living in Retirement
As you transition towards retirement age, one of the primary considerations is determining where and how you should live. This decision involves evaluating several factors. Here are a few of the bigger ones:
- Cost of living: The cost of living varies widely from state to state and city to city. When choosing a place to live in retirement, it is important to consider your budget and ensure you can afford to live comfortably.
- Proximity: Many retirees choose to live near family and friends to stay connected with their loved ones and establish a support system. It is crucial to consider your own needs and preferences in this decision.
- Healthcare Availability: Access to quality healthcare is important for everyone, but especially for retirees.
Your retirement should be a time of relaxation and enjoyment; deciding where and how to live is integral to achieving this goal. This decision will most likely involve compromise. So don't rush; take the time to assess your options and make a choice that best suits your vision of retirement.
Here are ideas to help guide you.
Aging & Senior Care
While no one can predict future long-term care needs, you could still take steps to help prepare for an uncertain tomorrow. Here are a few tips:
- Educate yourself about long-term care. What is it? What services does it cover? How expensive is it? The more you know, the better prepared you'll be to make decisions about your care.
- Consider your long-term care options. Many types of long-term care include home care, assisted living, and nursing homes. Think about your preferences and what you can afford.
- Talk to your family and friends about your wishes. Let them know what type of care you want and who you want to decide if you become incapacitated.
- Explore ways to pay for long-term care. Long-term care can be very expensive, so it's essential to have a plan. You may want to consider purchasing long-term care insurance, using your retirement savings, or relying on government assistance.
Learn how your age and health play into your retirement plans and what you can do to prepare for healthcare costs in retirement.
Conclusion
Preparing for retirement is essential to ensuring a comfortable and secure financial future. You can achieve your retirement dreams by starting early, setting realistic financial goals now, and choosing the right strategy.
If you haven't started planning for retirement, now is the time to start. Explore our retirement planning tools and resources to help you get started. Don't wait until it's too late - start planning for your retirement today!
