Retirement Income

Retirement Income

Retirement may bring changes to both your lifestyle and your finances. It is important to have a plan that accounts for the risks that can affect your retirement security.

For employers, defined contribution plans offer freedom from traditional pension risk while introducing new responsibilities. For employees, they offer individual control, greater flexibility and access to institutionally priced investments.

Put Your Money to Work

As you approach the point where you trade your paycheck for retirement, you'll rely on your retirement income sources to provide a steady stream of income through your retirement years.

No Lifetime Income Sources?

If you don't expect to receive Social Security or pension payments, or if those amounts won't cover your essential living expenses, consider converting a portion of your investments into an annuity.

Annuity guarantees depend on the claims-paying ability of the issuing insurance company and apply to minimum income only; they do not guarantee an investment return or the safety of the underlying funds.

Diversify Your Income Sources

Each retirement income category represents a different type of income and mitigates different risks. Diversifying across all three can help you generate income that may last a lifetime.

• Dividend — equity income. Dividend stocks and equity funds can help offset inflation, though they remain subject to market volatility.
• Interest — bonds and fixed income. Potential for a stable income stream while preserving principal; subject to credit and other risks.
• Lifetime — Social Security and pensions. Benefits can start as early as 62 or be deferred to 70, and the monthly amount varies with the age you begin claiming.