Quick Guide to Retirement Planning: Living in Retirement

Congratulations on reaching retirement! Your financial journey, however, is a long way from over. The transition into retirement requires a huge shift in your financial thinking—from years of accumulating assets, to now finding the most efficient and effective way to convert those assets into a lifetime’s worth of income. It requires:

  • A clear understanding of your retirement goals and the income required to fund them;
  • A careful assessment of all your potential income sources; and
  • Strategies to minimize the various risks associated with retirement

What are your biggest risks in retirement?

  • Longevity risk — the risk that you may outlive your assets. Today, the potential of a retirement lasting 30 years or longer is higher than ever before.
  • Inflation risk — when you worked, your salary typically increased to at least keep pace with inflation. Your retirement savings, however, won’t have that same protection. You should invest at least a portion of your money in stocks, which historically have had the best performance over long time frames.
  • Market risk — once you begin taking income from your investments, the performance of the market early on in your retirement is critical. Poor market returns in the first few years of retirement can have a dramatic impact on the ability of your savings to last.
  • Withdrawal risk — numerous studies show that new retirees tend to spend excessively in the first few years of retirement, putting their future years at risk.

A SunTrust Investment Services advisor can help you address these and other risks by building a sustainable retirement income plan. To learn more, call 877.962.9032.

How will taxes and inflation affect your savings?

Use this handy calculator to estimate the impact of inflation and taxes on your retirement savings.

 

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