Planning for Retirement

We can help you start your next chapter.

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Transitioning into retirement doesn’t have to be stressful.

As you prepare to enter your golden years and leave working life behind, it’s time to take a deep look at your financial situation. Experts suggest that you need between 70 and 85% of your pre-retirement income for each year of retirement in order to maintain your standard of living. Your needs could be higher if you plan on doing a lot of traveling in retirement or if you foresee having significant medical expenses. They could be less if you plan on downsizing or living more modestly than you are now. Being realistic about your health, your expectations, and your assets can help you succeed in retirement.

We want to help you live comfortably.

You spent decades building the life you currently enjoy. You may have access to retirement accounts, Social Security income, a military pension, and disability payments in addition to general savings. It’s important that you consider inflation, market performance, fixed income streams, and expenses when planning for retirement. Any one of these factors can affect how long your retirement funds will last, so it is important to have an estimate to inform important decisions such as whether you need to continue working, consume less, or save more.

• High inflation and poor market performance can eat into your stocks and mutual funds, but a lower rate of inflation and good market performance can boost your savings. Once you retire, you can choose a market-based withdrawal system when it comes to any 401(k), IRA, and TSP accounts – if investment returns are low, you withdraw less money than you would in an average year, and if investment returns are high, you can take out more than average.
• Fixed income streams guarantee that you have some amount of money coming in each month during retirement and they can reduce the amount of money you need to “self-fund” for your retirement. Social Security benefits are well known, but military retirees are also eligible for a pension – as are others who meet requirements and work in specific fields (e.g., teaching, firefighting, nursing, transportation) – and anyone with enough saved can also purchase an annuity to guarantee income for a specific period of time as well. You may also be eligible for disability compensation from the Department of Veterans Affairs.
• Your expenses are the aspect of retirement planning that you have the most control over. Where you want to live, the amount of travel you do, and how you want to spend your time are for the most part in your control. If you want a luxurious retirement, you will need more money saved than if you plan to live modestly and stretch your savings for longer.

There are some things you cannot control, though, namely longevity and medical concerns. When it comes to retirement, it is best to plan for both the longest (in terms of life expectancy) and worst (in terms of medical concerns). So, plan for longevity, for both yourself and your partner, and also plan to spend money on medical expenses – and possibly long-term care. Navy Mutual’s Flagship Whole Life policies are available to purchase through age 80 and include a Chronic Illness Option that allows the policy owner to access the death benefit early in the event the insured develops a chronic illness and needs care. Planning for a shorter retirement with no health concerns could set you up for failure.