Today, 51 percent of Americans aged 60 to 64 remain in the workforce1
. For these and other
Americans, retirement doesn't mean slowing down. But from modifications in schedules,
lifestyle, and income, retirement almost always brings change.
Retirement is something that
many people look forward to
reaching, but it can have its
challenges. Research shows
that couples, in particular,
may face difficulties when
transitioning to retirement as
they adjust to new roles and
. Adjustments in
spending and saving habits
may also be required as
couples move from earned
income to retirement income.
The decisions you make to
manage your assets during
retirement will determine the
type of lifestyle you will enjoy.
Taking time now to discuss
your retirement aspirations
and plans can help you make
better decisions for the future.
One important decision is
when you will stop working.
For married couples in twocareer
decision should be considered
jointly. Will both spouses stop
working at the same time?
Will one or both spouses continue to work to provide income? How you respond to these questions
may affect when you start tapping into your retirement assets for income. Remember that withdrawals
from tax-deferred retirement accounts are typically taxed as ordinary income
and, if taken prior to reaching age 59, may be subject
to an additional 10 percent federal income tax penalty.
Do you expect to spend more or less money during retirement? Do you envision spending your
retirement traveling or spending more time at home? Your answers to these questions will help
determine how much income you will need in your later years, which should factor into the financial
decisions you make today.
Have you developed an investment plan to help support the retirement lifestyle you desire? If you
have successfully accumulated a retirement nest egg that will support your desired lifestyle, you will
want an investment strategy that will help your assets last and provide you with a steady income
Whether you are about to retire or are already retired, preparation and communication can help you
make the most of your retirement years. Careful planning and decision making now may result in the
retirement you have always envisioned.
1) CNNMoney, August 30, 2004
2) The Wall Street Journal, February 14, 2005